GM to close plants in Canada, Ohio, Maryland and MI

"We started this transformation in 2015", Barra said in a conference call with reporters to announce the moves, "Now we're accelerating and picking up the pace". "To see this plant close is devastating".

Plants that will be "unallocated" in 2019 include Lordstown, as well as Detroit-Hamtramck in MI and Oshawa Assembly in Ontario, Canada.

She said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust with it.

The US carmaker has also announced it will close three plants outside North America by the end of 2019. Co. reported a US$991 million profit during its third quarter, but said tariffs cost the company about US$1 billion.

The cuts go all the way to the top, as GM plans to cut a quarter of its executive team in an effort to streamline operations and maintain profitability. The company estimates that the cuts will save it $6 billion by the end of 2020.

John Henry, the mayor of Oshawa, said early on Monday on Twitter that he hadn't talked to GM yet, and that a meeting was scheduled to begin at 09:30 a.m. Ontario time between the management and workers.

Unifor, the union representing more than 2,500 workers at the Oshawa plant, said in a statement that it does not have complete details of Monday's announcement, but it has been informed that there is no product allocated to the Oshawa plant past December 2019.

Sources tell the Sun Ontario Premier Doug Ford will be commenting on the closure Monday.

The General Motors Canada office in Oshawa, Ont., is photographed on Wednesday, June 20, 2018. The Detroit carmaker then opened its own plant in 1953, with production boosted by the 1965 auto pact that allowed cars to be shipped more easily to the US market.

TV report: General Motors plans to close Canadian assembly plant

President Donald Trump said Monday he was pressuring General Motors over its decision to close four plants in the U.S. because of sagging demand for sedans. "We think it's appropriate to do it while company is strong and the economy is strong". Everyone would return to work on Tuesday, the union said. Some US workers would transfer to truck and SUV plants where GM is increasing output, the company said.

"They're gone; they're done". The company received billions of dollars in support from the Canadian and Ontario governments after the financial crisis. A condition of that loan was that GM would not reduce its manufacturing operations in Canada for six years.

GM jumped as much as 7.9 percent to US$38.75, the highest since July, as of 12:20 p.m.in NY trading.

Also consider GM to Idle Factories, Cut Thousands of North American Jobs.

The company expects to take a pretax charge of $3 billion to $3.8 billion due to the actions, including up to $1.8 billion of asset write downs and pension charges.

Too many GM factories are devoted to making slow-selling cars and the company can no longer afford to keep them all operating without making some tough decisions.

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".

According to GM, the Oshawa plant employed 2600 hourly employees and 300 on salary.



Popular
  • Arsenal boss Emery admits defensive crunch talks

    Arsenal boss Emery admits defensive crunch talks

    The Gunners have failed to win their last three Premier League outings, but Emery's side have managed to remain unbeaten following draws with Crystal Palace, Liverpool FC and Wolves.
    FAA, Boeing study need for 737 MAX software changes after crash

    FAA, Boeing study need for 737 MAX software changes after crash

    The agency said it would take further action if results of the investigation into the Lion Air crash warrant it. Body parts are still being recovered and searchers are continuing to hunt for the cockpit voice recorder.
    Thousands demand Mueller protection after Trump fires Sessions

    Thousands demand Mueller protection after Trump fires Sessions

    CNN's K-File also found comments by Whitaker from 2017 calling Mueller's appointment "ridiculous" and "a little fishy". He's been described as a Trump loyalist and a possible threat to Special Counsel Robert Mueller's probe.
  • Croatia's Ivan Rakitic to miss England showdown because of injury

    Croatia's Ivan Rakitic to miss England showdown because of injury

    At Barca there are plays that are rehearsed and trained and I could see that England also had those plays very well-worked. Both teams are coming off impressive performances and there's plenty on the line here in a World Cup semifinal rematch.
    Alexander Zverev reaches ATP Finals semis then reminds Lendl who is boss

    Alexander Zverev reaches ATP Finals semis then reminds Lendl who is boss

    In stark contrast to second seed Roger Federer , Djokovic hit just six unforced errors and won 86% of points on his serve. From there Djokovic won the next three games, dropping only one point, as he wrapped up his second win of the week.
    Federer, Djokovic clash over ATP Finals future

    Federer, Djokovic clash over ATP Finals future

    Following this, the top two from each group qualify to Saturday's semi-finals, with the final scheduled for Sunday. It was guaranteed as soon as Rafael Nadal withdrew from the last Masters of the season in Paris.
  • Bears, Cowboys and Saints take home wins on Thanksgiving Day

    Bears, Cowboys and Saints take home wins on Thanksgiving Day

    Washington is 6-4 and leads the NFC East but travels to Dallas without Alex Smith, who suffered a season-ending injury on Sunday. When you have a different player that's in and in the same position, it doesn't mean that they can do the same thing.
    PSG confirm Neymar and Kylian Mbappe injuries ahead of Liverpool clash

    PSG confirm Neymar and Kylian Mbappe injuries ahead of Liverpool clash

    On Wednesday, PSG announced that Mbappe has a bruised shoulder, while scans on Neymar showed a right adductor strain. Neymar lasted just eight minutes of Brazil's clash with Cameroon yesterday before limping off with a groin issue.
    Dez Bryant's patience pays off with ideal  landing spot

    Dez Bryant's patience pays off with ideal landing spot

    The Saints have racked up the seventh-most passing yards per game this season with 289.9 and second-most most points at 34.9. When Bryant, a former star, worked out with Cleveland, he briefly negotiated with the team but never came to terms.
  • Mane 'statement' a marker of Liverpool's progress, says Klopp

    Mane 'statement' a marker of Liverpool's progress, says Klopp

    Gomez has established himself back in Liverpool's side after missing the end of last season and the World Cup through injury, he has also become a key component of Gareth Southgate's England team.
    Ireland deserved to win

    Ireland deserved to win

    Schmidt's ability to spot a potential opposition weakness was also evident in Ireland's all-important 48th-minute try. What time does Ireland vs New Zealand kick-off? Ireland's coach masterminded a 16-9 win in Dublin.
    Danny Welbeck given oxygen, stretchered off with serious-looking injury

    Danny Welbeck given oxygen, stretchered off with serious-looking injury

    The Arsenal forward attempted to get back up but was unable to do so on his own, prompting Arsenal medics to rush to his aid. Possible fracture dislocation of ankle which could [be] career ending", Wilson wrote on Twitter.

CONNECT