General Motors to close seven factories, axe 15% of workforce

General Motors to close seven factories, axe 15% of workforce

Their futures will be part of contract talks with the United Auto Workers union next year.

According to the company's website, the Oshawa Assembly Plant employs 2,522 workers with Unifor Local 222.

But its outlook is bleak after GM announced production of the Chevy Cruze would stop in March, halting work at the assembly plant that already had lost two shifts and 3,000 union jobs since the beginning of previous year.

The Detroit-based union has already condemned GM's actions and threatened to fight them "through every legal, contractual and collective bargaining avenue open to our membership".

Closing the aforementioned plants is not all, though.

Trump's victories in OH and MI helped seal his electoral vote total and the United States presidency.

Lagging U.S. vehicle sales has seen several auto plants fall to just one shift, including its Detroit Hamtramck Assembly plant and Lordstown, Ohio, assembly plant.

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GM is also dealing with some higher costs associated with tariffs on imported steel and aluminum, which has raised its commodity costs by about $300 million in the third quarter and could raise costs by $1 billion next year.

At a rally near the Lordstown plant last summer, which is facing closure, Mr Trump told people not to sell their homes because the jobs are "coming back".

In October, GM offered buyouts to 18,000 white-collar workers as part of a cost-cutting initiative.

GM's actions add up to the biggest restructuring for the U.S. No. 1 carmaker since its bankruptcy a decade ago, and mark a turning point for the North American auto industry.

More than 16 months ago, the UAW confirmed that it was discussing with GM the potential threat to plants and jobs from slumping USA sedan sales.

Canadian Prime Minister Justin Trudeau on Monday expressed his "deep disappointment" in General Motors' decision to close its Oshawa plant, a move Canadian officials only learned about on Sunday and which led workers to walk off the job on Monday.

"While the union does not have complete details of the overall announcement we have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019", the union said.

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GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong," CEO Mary Barra told reporters.

The move provoked an immediate rebuke from President Donald Trump, who warned GM it was "messing with the wrong person" - and demanded the vehicle maker shut factories in China instead. Other plants making components are at risk of closure as well, along with two factories outside North America.

They responded favorably, sending shares of GM up seven percent.

Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario.

The cuts come on the heels of surprisingly strong third-quarter earnings.

The firm said it was cutting production of the Buick LaCross, Chevrolet Volt, Cadillac CT6 and XTS and Chevrolet Impala, as well as older versions of the Silverado and Sierra.

OH politicians are also responding to the announcement.Arno Hill, the mayor of Lordstown, told NPR that he received a call from GM to inform him about five minutes before the news was released to the public. He called the decision "absolutely devastating", and the broadcaster reported that thousands of workers at the Ontario plant stopped working Monday. Lordstown Assembly builds the Chevrolet Cruze.

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