General Motors To Close Ohio Plant, Thousands Affected

GM to slash 14,700 jobs in North America

GM to slash 14,700 jobs in North America

It is unknown if any IN employees will be affected by the workforce reduction.

According to Chiodo, the Oshawa plant has "some of the best employees in North America".

In October, almost 65% of new vehicles sold in America were trucks or SUVs.

What's more, the Cruze plant just outside Youngtown is in a Democratic and labor stronghold, where Trump won over a surprising number of voters two years ago by reaching out to what he called America's "forgotten men and women". It will integrate its vehicle and engine engineering teams, and it will bring more employees together, trimming the number of campuses for auto developers.

"We estimate sedans operate at a significant loss, hence the need for classic restructuring", he wrote.

The reduction includes 8,100 white-collar workers, some of whom will take buyouts and others who will be laid off.

These decisions are expected to lead to savings of approximately $6 billion by the end of 2020: $4.5 billion in cost reductions and $1.5 billion in lower capital expenditure.

The moves are the first big steps in the century-old GM's transformation. The affected facilities build cars that will not be sold in the U.S. after next year.

Both U.S. Senators Sherrod Brown and Rob Portman have lobbied GM CEO Mary Barra to bring a new product to the Lordstown plant.

She said the firm was making the changes "to get in front of it while the company is strong and while the economy is strong". The official spoke on condition of anonymity because they were not authorized to talk publicly ahead of the announcement. Over the years, Oshawa has been responsible for producing cars from GM's most important brands, including Chevrolet, Buick and Pontiac, and it is equipped to make just about every model GM sells.

For instance, in July 2017 during a rally in Youngstown, Ohio, near the the president said of manufacturing jobs that state lost over the years: "They're all coming back". A Canadian union, Unifor, which represents most unionized autoworkers in Canada, said on Sunday it had been informed by GM that there would be no product allocated to the plant in Oshawa after December 2019. To fund its goals, GM is slashing 15 percent of its North American contract workers while cutting production of its vehicles with the worst sales.

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GM says the Detroit-Hamtramck Assembly, Lordstown Assembly, Baltimore Operations, and Warren Transmission Operations "will be unallocated in 2019".

Bobbi Marsh, who has worked assembling the Chevrolet Cruze compact vehicle at the OH plant since 2008, said she can't understand why the factory might close given the strong economy.

Still, several Twitterians suggested that GM was not the only one to be blamed and noted that the government could do more to save the plant. But the restructuring is also about making cars people want now. I spend more time around them than my own family.

Many of those who will lose jobs are now working on conventional cars with internal combustion engines.

The moves are meant to shift resources to investing in electric and autonomous vehicles and to prepare for a downturn in the auto market, the automaker said.

Barra did not link Monday's cuts to tariff pressures, but said trade costs are among the "headwinds" GM faces as it deals with broader technology change and market shifts. The company plans to kill the Chevy Volt, Cruze and Impala models, as well as the Cadillac CT6 and Buick LaCrosse.

Detroit-Hamtramck now builds the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse, Cadillac CT6.

The decision to halt production at the GM plant in Lordstown, Ohio, and its Hamtramck facility in MI are a blow to the states' economies.

Two other plants outside North America - as yet unnamed - are also due to close, in addition to the pre-announced shuttering of the firm's plant in the South Korean city of Gunsan.

The company's main competitor, Ford, said earlier this month that it would reduce its salaried workforce by the second quarter of 2019.

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