GM Closing Lordstown Plant In 2019, Cutting Thousands Of Jobs

GM to Close 8 Plants, Lay Off Close to 15,000 Workers

It's part of an announcement that GM is laying off almost 15,000 factory and white-collar workers in North America, including those at its Detroit-Hamtramck Assembly plant in MI and Ashawa Assembly in Ontario, Canada. Plants that will be "unallocated" in 2019 include Lordstown, as well as Detroit-Hamtramck in MI and Oshawa Assembly in Ontario, Canada. The layoffs will hit 8,000 white-collar employees and at least 5,900 blue-collar workers. Do they really believe Americans will buy products from a company that closes four plants in the United States, while maintaining the largest number of factories in Mexico.five of them.of any US carmaker and with more employees in Mexico than any other carmaker.

About 6,000 factory workers could lose jobs in the USA and Canada, although some could transfer to truck plants.

GM in recent years has worked to slice costs, with a goal of $6.5 billion in cuts this year alone. Meanwhile, the decision to idle the plants is part of a strategic shift away from cars and toward trucks and SUV's ― Americans continue to buy big as gas prices remain relatively low ― as well as electric and self-driving vehicles.

"It's like we're in a limbo now", said Marsh, a single mother who said she has a teaching degree to fall back on if the plant is closed.

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"Most of the one-shift plants are sedan plants", Dziczek said.

"In contrast to times past, General Motors, under CEO Mary Barra, is trying to get ahead of a potential crisis by making cuts now", said Michelle Krebs, executive analyst at Autotrader. Members of United Auto Workers Local 1112 were told to expect to end operations in March 2019. The Detroit-Hamtramck facility is GM's last in the city, and the Lordstown plant in OH was one of its biggest.

GM will also prioritize electric auto development and concentrate on five models that account for three-quarters of the automaker's sales. GM has informed the Canadian government of the plan.

In a press release, GM said it will cut 15 percent of its salaried workers and new products will be brought to fewer plants next year.

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GM is cutting more than 6,300 hourly and salaried workers at its plants and 15 percent of the salaried workers in North America for a total of more than 14,000. GM "better damn well open a new plant [in Ohio] very quickly", and stop manufacturing cars in China, Trump told The Wall Street Journal.

Early reports indicated that GM's layoffs are the result of steel tariffs levied by the Trump administration in its fledgling trade wars with China, Canada, and the European Union, but GM says that no one factor led to the layoffs. In a statement made about the restructuring, GM specifically names crossovers, SUVs, and trucks as being a higher priority, growth wise, and their closure of a handful of facilities will allow for more focus on those models. When, not if, a recession hits - and we're about due - it'll be hard politically for the company to justify layoffs.

In a statement, Detroit Mayor Mike Duggan described the news as "troubling" and said that the city's economic development team and the UAW union are "working together to come up with a solution that works for GM and the employees".

Are other automakers planning similar cuts?

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