General Motors ceases production at seven factories worldwide and renounces thousands of workers to a $ 6 billion cut in costs as the US automaker has backed the domestic market's downturn and the global trading war.
The four factories that will be closed next year – two assembly plants and two engine works – will be in the United States, where President Donald Trump has granted his protectionist trade policy by strengthening American production. Canadian Fifth Department is also closed.
Closures require cuts to about 15 percent of GM's North American workforce or 8,000 paid employees. The second 6 000 temporary agents are laid off or transferred.
"We are doing these actions when the company and the economy are strong to keep up, what we all know are very challenging environments," said Mary Barra, CEO on Monday.
Barra cuts make GM's latest car maker to operate in a weak state with the US weakening, as Ford announced plans to stop production of all passenger cars in North America.
They are in conflict with rising costs, reduced sales of cars, and changing consumer habits that automakers must respond while pumping investment into new technologies such as electric cars and self-propelled vehicles.
"There have been a lot of backs," Barra said, although he denied that the company was expecting the US economy shortly.
Most of the US plants are losing jobs in major Central America, which helped to appeal to Trump in 2016, including two car assembly companies Detroit-Hamtramck Detroit and Lordstown Assembly in Warren, Ohio, and a motor factory in Warren, Michigan.
Democrats seek to blame for the freezing of Trump's legs, according to Tim Ryan, the Democratic Congress of Ohio, saying the president had "slept with a switch" when officials were looking for help to save Lordstown's factory.
"He promised us that his massive corporate tax cut would lead to dramatic reinvestments in our communities," Ryan said. "It obviously does not happen."
GM seeks to cut costs by $ 4.5 billion and reduce capital by $ 1.5 billion a year, and will double the amount of electricity and autonomous cars in the next two years.
GM's shares, which have fallen by about 15 percent since the beginning of the year, rose by about 5.5 percent in mid-New York trading as investors hoped for a restructuring plan.
Trump and Trump's Steel and Aluminum Payments Affect GM and Ford as part of an aggressive protectionist trade policy. Two carmakers have said that the rise in raw material prices cost them $ 1 billion, as their domestic suppliers raised prices according to pricing.
These two have also been hampered by US unstable car sales, which fell last year and is expected to continue next year. At the same time, customers' needs are changing, moving from traditional salons to sports cars and lifting gear.
Number of employees who lose their jobs in GM
Mr Barra said GM is pursuing a "right size" business to increase the utilization of the remaining North American plants. As part of the traffic, GM cut a number of models, including Chevrolet Cruz and its hybrid Volt when the current production programs expire.
In addition to closing down the midwest, GM does not give any new work to the Canadian assembly plant in Oshawa and to the Baltimore Motor Factory in White Marsh, Maryland.
Canadian Prime Minister Justin Trudeau wrote on Twitter that he had informed Barra of "deep down disappointment".
He added: "GM employees have been the core of Oshawa and the soul for generations – and we do our utmost to help families affected by this news to return to their feet."
GM also seeks to close two international plants by the end of next year, even though they do not recognize where. For several years, the company has withdrawn from a struggling or unprofitable market such as Russia, India and Europe where it sold its Opel and Vauxhall brands to Peugeot. Earlier this year, it closed the assembly plant in South Korea.
GM offered 18,000 people for purchases last month for cost cutting.