Thursday , May 26 2022

GM gives the axle to factories and jobs


The United States Automakers General Motors are planning to close plants and redundancies. (Archive)


Due to the rising demand and increasing spending on the conversion to electric cars, General Motors faces the biggest reorganization since the bankruptcy in the financial crisis ten years ago.

A total of five assembly plants will get after shopbeds did not end up successive models, and the largest US carmaker announced on Monday.

Two factories for combustion technology are also underway. The company's total leaving 8,000 workers or 15 per cent of employees, the work of every fourth manager falls. "We adapt the reality of the reality in the market," says GM manager Mary Barra. In future electric cars and self-driving would have priority. United States auto workers Union issued a clear opposition UAW. GM shares won more than five percent.

Recently with October, the largest US automaker 50,000 workers in North America offered a redundancy package with the aim of leaving 18,000 of them. The reason for this is the decreasing demand for limousines in the United States, which has an increasing cost pressures due to the higher US tariffs on steel imports. The last has led to additional billions of dollars, he said earlier. Baryw was not involved in the program with difficulty for these costs, but talked about "headheads". Like all carmakers, General Motors is under pressure to give a lot of money to develop autonomous cars and electric cars. The resources for this will double in the next two years.

Sedans are out – SUVs and electric cars

The closure affects a plant in Oshawa, Canada, with about 2,500 unified workers. Canada's First Minister, Justin Trudeau, told Barry Sunday that he would be very disappointed. The state will help the affected families. Next year, US / Hamtramck / Michigan and Lordstown / Ohio plants, which have already been reduced to a single shift operation, will be closed. In the three locations band models roll like Chevrolet Cruze, Cadillac CT6 and Buick LaCrosse – they will be terminated. Also, there are two name assembly machines that have not yet been named by outside America. Two units will not drive any 2020 work and is also under threat to close.

According to those, several sedan models were already 16 months ago on the disposal. At that time, UW's US auto-union union said he was talking to GM about which factories and how many jobs are at risk due to the decline in the number of saloons and what new models could be set up. Because the four classic doors are less and less popular. American car buyers prefer to buy SUVs and pick-up vehicles. From January to September, new car sales increased by eight percent, with a 13 per cent reduction in the number of saloons.

General Motors intends to save $ 6 billion a year by the end of 2020, the former Opel parent company. The cost is expected to fall by $ 4.5 billion, the investment will be closed from 8.5 to seven billion dollars a year. That's probably because investments in new trucks and trucks have already been completed, says Barry. The cost of the restructuring of the GM is estimated at $ 3.0 to $ 3.8 billion, which caused mainly this and next quarter. The car maker wants to fund the restructuring costs by credit.

Even the Ford Motor and Fiat Chrysler competitors have already slowed down their car production in the United States. Ford wants to make the most of the production of vehicles in North America almost completely after publication in April.

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