Sunday , March 7 2021

GM takes the ax into factories and works

The US automobile manufacturer General Motors plans to close down factory closures and jobs. (Archive)


In the grip of declining demand and increased spending on converting to electric cars, General Motors has faced the biggest restructuring ever since the bankruptcy of the financial crisis ten years ago.

With the announcement of the largest US automobile manufacturer, a total of 5 assembly plants will be launched and closed after the end of the aftershocks.

There are also two factories for combustion technology. A total of 8,000 employees or 15 percent of the workforce should leave the company, with the task of each fourth manager falling. GM boss Mary Barra said, "We are adapting the capacity of reality in the market." Electric and self-driving vehicles have a priority in the future. US auto workers unveiled the UAW union's exact resistance. GM shares earned more than five percent.

In October, the US's largest carmaker, North America, offered a seniority package with a target of leaving 18,000 people with 50,000 employees. This is because the demand for limousines in the United States is reduced. This is accompanied by increased cost pressure due to US tariffs for steel imports. Secondly, previously led to an additional cost of one billion dollars. Barra did not associate the austerity program with these costs, but mentioned "headwinds". Like all car manufacturers, General Motors is under pressure to invest a lot in the development of electric cars and autonomous vehicles. For this, resources will double in the next two years.

Sedans out – SUVs and electric cars

The closures affect a factory in Canada's Oshawa region with about 2,500 union workers. Canadian Prime Minister Justin Trudeau said he was deeply disappointed by Barra Sunday night. The state will help affected families. Next year, the US closed its factories in Hamtramck / Michigan and Lordstown / Ohio, which were reduced to a single-shift operation. Rolling models, such as the Chevrolet Cruze, Cadillac CT6 and Buick LaCrosse, are not produced in three locations of the group. It is also over for the two, which is yet to be called by the name assembly facilities outside North America. The two drive units will have no job from 2020 and will also threaten closure.

According to the inside, several sedan models have already passed out 16 months ago. At that time, the American automotive workers' union, the UAW, reported that it was talking to GM, the number of factories and how many jobs were at risk because of the number of halls and new models could be installed. Because the classic four-door is less and less popular. American car buyers prefer to buy SUV and pickup cars. New car sales increased more than eight percent from January to September, while the number of lounges dropped by 13 percent.

Former Opel parent company said General Motors is planning to save $ 6 billion a year by the end of 2020. The cost is expected to fall to $ 4.5 billion, the investment will close between $ 8.5 and seven billion a year. This is possible because investments in new trucks and trucks have been completed, Barra said. The cost of restructuring GM is mainly $ 3.0 billion to $ 3.8 billion in the next quarter. The vehicle manufacturer wants to finance restructuring costs through credit.

Competitors Ford Motor and Fiat Chrysler even slowed down car production in the US. Ford wants to cut the vehicle production in North America immediately after its announcement in April.

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