General Motors will publish 14.7 thousand. employees. I want to focus on electric cars

General Motors announced Monday that it planned to close factories in the United States and release more than 14,000 people to cover costs. This will allow the company to adapt to changes in the automotive market, which GM feels by decreasing the sales of its own products. The plants will be liquidated in the United States and Canada.

As part of this reduction, the company will stop production of cars such as Chevrolet Cruze, Cadillac CT6 or Buick LaCrosse.

Trump and Trudeau unhappy

First, the engineering of the group will be reduced. 15% of engineering positions at GM will be reduced, about 8,000 people will lose their jobs. About 6,000 workers working in factories in Ohio, Michigan, Maryland and Ontario will be exempt.

Automotive giant Mary T. Barra said many factors contributed to the decision and described them as "a humble reef (reducing the area – red.)".

We are taking such steps now, while the business and the economy are strong to meet the challenges of the evolving market

– Barra said at a press conference quoted by the New York Times.

US President Donald Trump and Prime Minister Justin Trudeau express their dissatisfaction with General Motors' decision.

I talk to her and I stress that I'm not happy about what she's doing

– Quote Donald Trump of the NYT.

The US president also recalled that ten years ago, the state had saved the company from bankruptcy and had expressed hope that Barra would amend part of the ruling.

In turn, the Prime Minister of Canada will express his "deep disappointment". Ontario workers were a little less agile. They came to protest under the red flags despite the rain.

Protests are also being announced by the conspirators of United Auto Workers, a union of professional workers in the auto industry in the United States. They criticized the closure of factories in the United States while simultaneously developing production in China and Mexico.

The direction of electric and autonomous cars

One of the reasons for the hardness (more than 10% of the group's employees will be released) is the fact that General Motors, under the direction of Mary Barra, is investing heavily in new unfinished constructions. The concern wants to focus more on electric cars and autonomous vehicles. In 2016, GM spent a billion dollars for the purchase of the start-up Cruise Automation, specializing in autonomous vehicles. At first, it seemed like it was not the best investment, but recently, the Japanese Honda has invested 750 million dollars in startups. The next money will be added by the Japanese bank Softbank.

Honda has also agreed with General Motors on the joint design and manufacture of fuel cells for hydrogen. Fuel cell technology can be an alternative to battery electric cars.

In 2017, the group had generated a turnover of $ 145.6 billion and an EBIT profit of more than $ 12.84 billion. In 2017, the company's board of directors provided more than $ 58 million in invoices for its work. Barra received nearly $ 22 million, including $ 7 million.