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

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

The facilities made some trucks, but those trucks are also made in Mexico.

General Motors rallied as much as 8% Monday after announcing plans to stop producing vehicles at three factories in North America and to cut its salaried employees by 15% next year.

The Canadian and Ontario governments joined the United States in supporting GM with billions of dollars in aid after the automaker filed for bankruptcy protection during the severe 2009 global economic downturn. The automaker said it planned to lay off 14,000 workers and close seven factories. The company offered buyouts to 18,000 white-collar workers in October, but hasn't said how many accepted.

GM also is ramping up hiring at its GM Cruise autonomous vehicle unit, pushing to overcome technical challenges and make good on a plan to launch a robo-taxi service next year.

Ontario Premier Doug Ford said there's nothing the province can do to keep the Oshawa General Motors plant running, a pronouncement the opposition calls shocking and concerning.

The General Motors Canada office in Oshawa, Ont., is photographed on Wednesday, June 20, 2018.

GM's unions aren't happy. He said he heard about the reported closure from CTV News, which first reported the story, when a reporter called him for comment earlier in the day. The firm said it would name the two additional worldwide plants set for closure later.

"It's going to affect the province, it's going to affect the region ..."

Youngtown is in a Democratic and labor stronghold, where President Donald Trump won over a surprising number of voters two years ago because of his promise to bring work back to the U.S. Add General Motors as an interest to stay up to date on the latest General Motors news, video, and analysis from ABC News.

The company said it plans to halt production of the Chevrolet Cruze at the Lordstown plant in March. Jennifer French, who represents Oshawa in the provincial legislature, said she finds the news "gravely concerning".




"GM workers have been part of the heart and soul of Oshawa for generations - and we'll do everything we can to help the families affected by this news get back on their feet", Trudeau said on Twitter.

"GM didn't build #Oshawa". Impala, which is built at Oshawa and Hamtramck, was down 13 percent.

Bobbi Marsh, who has worked at the Lordstown plant since 2008 and whose father was there 42 years, said so many other jobs depend on the plant.

The company also said it would close three plants outside North America by the end of next year.

"The parties agreed that when management is considering the implementation of restructuring actions that would result in permanent job loss, management will give written notice [to the union.] In the case of a plant closure, the notice will be given one (1) year in advance".

Jerry Dias, the president of Unifor, had even harsher words for GM. But he noted the former head of GM Canada, Steve Carlisle, was determined it wouldn't close on his watch.

"It is disappointing that GM failed to see and build upon this competitive advantage", said Ford in a statement on Monday.

The US President told reporters that he told Ms Barra he was unhappy with the announcement.

"Trade policy does have an impact because it raised costs significantly for steel and aluminum, and the industry told Trump it would do that", said Mary Lovely, a professor of economics at Syracuse University.

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