Monday, November 26, 2018

General Motors Announces 5 Plant Closures, 14,000+ Layoffs


The Chicago Tribune is reporting General Motors, the largest automaker in the United States, will be laying off 14,500 factory and white-collar workers.

In addition, five plants will be closed during a 2019 company restructuring.

The reduction includes 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 they could get different vehicles to build. They will be part of contract talks with the United Auto Workers union next year.

The four factories in the U.S. and one in Canada could be shuttered by the end of 2019 if the automaker and its unions don't come up with an agreement to allocate more work to those facilities, GM said in a statement Monday.

Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario. Also affected are transmission factories in Warren, Mich., as well as Baltimore.

More than 6,000 factory workers could lose jobs in the U.S. and Canada, although some could transfer to truck and SUV plants.

The cuts represent 15% of GM's work force.

The timing could prove problematic for Donald "I Create Jobs" Trump as he enters the 2020 campaign cycle.

According to the Chicago Tribune, the closures will save $6 billion in cash by the end of next year.

This is all in addition to the $6.5 billion in cuts already announced for the end of this year.

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