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General Motors is on the verge of closing factories in Michigan, Ohio, Maryland and Canada, killing several passenger cars and reducing its workforce by 15% as part of an extensive cost reduction program designed to increase profits.
The Detroit-based automaker has announced the end of production by the end of 2019 at its assembly plant in Lordstown, in northeastern Ohio; its Detroit-Hamtramck assembly plant in southeastern Michigan; its assembly plant in Oshawa, Ontario; its Baltimore Operations spare parts plant; and its Warren Transmission Operations plant in southeastern Michigan.
The assembly factories are behemoths. GM employs approximately 1,500 people at the Detroit plant, 1,600 at the Lordstown plant and 2,500 in Oshawa.
The announcement comes before next year's contract negotiations with the United Auto Workers union, which could eventually lead to the decision to dedicate vehicles to these facilities.
United Auto Workers, GM's largest employee union, has vowed to fight this plan.
But it is very likely that the factories are closing for good.
More: GM to kill Chevrolet Volt, Cruze and Impala as Americans abandon passenger cars
More: GM offers buyouts to 18,000 employees, but layoffs are possible
The company will also stop Chevrolet Cruze, Volt and Impala cars in North America as Americans flock to larger vehicles in the form of crossovers, SUVs and pickup trucks.
CEO Mary Barra is looking to reposition GM for a future defined by autonomous cars, carpools and electric vehicles.
The cuts will make GM "light and agile", as the company wants to "autonomously drive and direct electric vehicles," Barra said.
Taken together, these measures will generate additional annual cash flows of more than $ 6 billion by the end of 2020, said GM. This includes cost savings of $ 4 billion and reduced capital expenditures of $ 1.5 billion.
The UAW said it would "confront this GM decision by all legal, contractual and collective bargaining means open to our members".
It's a "ruthless decision" to cut US operations about 10 years after the automaker first accepted federal bailout money, said Terry Dittes, UAW GM's chief communicated.
"GM's production decisions, in light of the concessions granted by employees during the economic downturn and the taxpayer's rescue from bankruptcy, put profits ahead of working families in this country whose personal sacrifices were made to GM during those dark days, "Dittes said. a slap in memory and memory of this American historical bailout. "
GM has announced the closure of two other plants outside North America by the end of 2019. It will also continue with plans to close its Gunsan plant in South Korea.
Downsizing will affect 15% of the company's contract workforce. It is unclear how many of these cuts will be voluntary and how many will take the form of layoffs. GM offered buybacks to 18,000 workers several weeks ago.
The company also announced a 25% reduction in the number of its executives.
Contribute: Jamie Lareau, Detroit Free Press reporter
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
Read or share this story: https://www.usatoday.com/story/money/cars/2018/11/26/gm-general-motors-plant-closures-job-cuts/2113275002/
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