Executive Intelligence Review

FROM EIR DAILY ALERT


General Motors To Lay Off 15,000 Workers and May Close up to Five Plants

Nov. 26, 2018 (EIRNS)—General Motors announced a company-wide restructuring today that will lay off 14,700 factory and white-collar workers in North America and may closed up to five major plants, saying the restructuring will cut costs to allow it to focus more on electric vehicles and autonomous cars.

GM said in a news release that it would halt production at three assembly plants: Lordstown Assembly, in Warren, Ohio; Detroit-Hamtramck Assembly in Michigan; and Oshawa Assembly in Oshawa, Ontario. It also plans to close transmission plants in 2019 in White Marsh, Maryland, and Warren, Michigan.

“The actions we are taking today continue our transformation to be highly agile, resilient, and profitable, while giving us the flexibility to invest in the future,” GM Chairwoman and CEO Mary Barra said in a statement that projected $6.5 billion in cost cuts in 2018. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

GM shares rose 6% by late Monday morning, Nov. 26.

The layoffs include 8,100 white-collar workers, some of whom will take buyouts, and others who will be laid off. Most of the affected factories build cars that won’t be sold in the U.S. after next year; they could close, or get different vehicles to build. These decisions will be part of the contract talks with the United Auto Workers union next year.

Ford also announced cutbacks, reducing its salaried workforce by the second quarter of 2019.

President Donald Trump, asked about the announcement, said today:

“Well, we don’t like it. I believe they’ll be opening up something else. And—I was very tough. I spoke with her [Barra] when I heard they were closing. And I said, ‘You know, this country has done a lot for General Motors. You better get back in there soon. That’s Ohio, and you better get back in there soon.’ ”

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