General Motors to close five plants eliminating over 14,000 jobs as it shift focus to electric vehicles
General Motors Company on Monday announced the closure of five plants including two in Detroit as well as manufacturing plants in Ohio and Canada
The American multinational corporation General Motors Company is reportedly closing five of its plants, cutting up to 14,700 jobs in an effort to restructure to save $6billion. The move comes as the firm is shifting its focus to autonomous and electric cars, according to reports.
The company, on Monday, announced that the closure of five plants also includes two in metro Detroit as well as manufacturing plants in Ohio and Canada. GM Chairman and CEO, Mary Barra, said that the savings attempted by the firm were necessary so that General Motors can invest in the future.
"What we're doing is transforming this company. This industry is changing very rapidly when you look at propulsion, autonomous driving and ride sharing. We want to be in front of it while the company is strong and the economy is strong," Barra said while talking to Freep.
The firm's move will reportedly not affect its core products like its pickups, SUVs and some other car lines, including its GMC Sierra pickups and full-sized 2019 Chevrolet Silverado.
"Those are good architectures from a fuel economy perspective... We'll continue to put those in the market, but we can take down our capital expenditures while investing in electric and autonomous vehicles," said Barra. "You will see a greater share invested in autonomous and electric vehicles, both from a capital expenditure and increased hiring for electric and self-driving engineering jobs."
General Motors, in a press statement, said that the firm will close the Detroit-Hamtramck Assembly Plant in Detroit and Warren Transmission Operations in Warren. Other plants sites which would be shutting includes the Oshawa Assembly Plant in Oshawa, Ontario, the Lordstown Assembly in Warren, Ohio, and the Baltimore Operations in White Marsh, Maryland. The firm will also stop building several models which, till now, have been assembled at these plants, including the Buick LaCrosse, Chevrolet Cruze and the Cadillac CT6.
"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," Barra said. "We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success."
Reports state that the job cuts include 8,100 white-collar workers, and nearly 6,000 factory workers in the US and Canada.