(Bloomberg) – General Motors dismisses more than 14,000 employees and industrial workers and closes seven factories by the end of next year. This measure is part of a radical restructuring as it is preparing for the future with more electric cars.
Four factories in the United States, one in Canada, and two outside North America could close the doors by the end of 2019 if the automaker and its allies did not agree to increase work on these facilities, GM said in a statement. . In addition to the closures, the company removes part of its lower circulation from the sedan.
The cuts will come soon after the surprisingly strong third quarter results. GM's Managing Director, Mary Barra, is trying to make the business even shorter, as US car sales fell compared to the 2016 record, and sales in China – the second GM's winning position – are also the most damaging. On the other hand, Barra allocates resources for the production of electric cars and in the future for vehicles that drive themselves.
"We are doing these measures while the economy remains stable," Barra told reporters in Detroit. "This industry is changing very fast, and we want to make sure we are in a good position. We believe it is appropriate when the company and the economy are strong."
GM shares rose by 7.9 percent to $ 38.75, which is the highest since July at 11:16. On the New York Stock Exchange. Shares are still down 7% this year.
The plan to terminate 15 percent of the salaried employees follows a round of grants, which GM provided about a quarter of older labor at the end of October. GM said cuts will boost free cash flow for cars by $ 6 billion by the end of 2020 and will result in non-recurring payments for the fourth quarter of this year and the first quarter of 2019 up to $ 3,800 million.
GM also announced that next year the company will cease manufacturing Buick LaCrosse, Chevrolet Impala and Cadillac CT6 sedans. The Chevy Volt plug-in hybrid is also shut down by the Chevy Cruze compact sedan manufactured in Mexico on other markets.
Possible foreclosures already caused a political rejection, as Canadian Prime Minister Justin Trudeau commented that he had already expressed his "deep disappointment" to Barra. US Institutions They are places that have been economically destroyed by job losses and pressure on wages for decades, enabling Donald Trump to take the US president. in 2016.
US Senator Rob Portman, the Ohio Republican, said he was "deeply frustrated" when GM decided to close Plant of Lordstown and push Barra to introduce an alternative product to the factory.
Barra reduces staff from traditional cars and hires people who can design electric vehicles or increase software capabilities at the San Francisco automobile manufacturer GM Cruise LLC. This means that GM has to allocate more resources to electric cars, unlike Volt's hybrid and independent technology, Barra said.
GM denounces more than 6,300 employees who work hourly in their factories and 15 percent of the 14,000 employees in North America.
The company named its sedan car factory in Detroit, a compact automobile factory in Ohio and a second assembly station on the outskirts of Toronto, for possible closure. Two transmission networks are also in danger, one from Detroit and another from Baltimore.
GM has provided compensation and paid employees with its core cars, and last year it has added some 1,000 people to Cruise.
Original Note: GM Plans More than 14,000 Work Cuts, Closure of Seven Millions (1)
– Keith Naughton's co-operation.
Editor in the original report: David Welch in Michigan, [email protected]
The reporters respond to the original story: Craig Trudell, [email protected], Kevin Miller
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