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GM closing Lordstown assembly plant, cutting 14,700 jobs in North America

GM closing Lordstown assembly plant, cutting 14,700 jobs in North America

General Motors will lay off 14,700 factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric vehicles.

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future", she said in the release.

With U.S. auto sales lagging, that means several GM vehicle plants have fallen to just one shift, including its Hamtramck and Lordstown assembly plants.

Both U.S. vehicle assembly plants scheduled to stop production next year now build slow-selling passenger cars.

Last month, as GM reported a US$2.5-billion third-quarter profit, the automaker also said it was aiming to cut costs by offering buyouts to roughly 18,000 white-collar workers with 12 or more years of service.

GM, the largest automaker in the USA, which sells the Chevrolet, Buick, Cadillac and GMC brands, said the moves will save $6 billion in cash by the end of next year, including $4.5 billion in recurring annual cost reductions and a $1.5 billion reduction in capital spending. GM propulsion plants in White Marsh, Md., and Warren, Mich., are also due to close as well.

In a statement, Governor John Kasich said the news was "frustrating" but said he would work with GM to try to preserve the plant.

General Motors announced Monday that Lordstown, along with several other plants of operation, will remain "unallocated" meaning they won't receive any new product. Also at risk are two transmission plants, one outside Detroit and another in Baltimore.

GM isn't the first to abandon much of its vehicle market. Models expected to be discontinued include the Cadillac CT6, the Chevrolet Cruze and the Buick LaCrosse.

The province has also asked for EI to be extended an additional five weeks - from 45 to 50 weeks. "There is a long-standing, proud history in terms of General Motors's presence in Oshawa, so now to see this plant close.is incredibly devastating".

In all, about 6,300 workers will be laid off.




Brown also said it is clear that GM doesn't respect the workers at Lordstown and is demanding answers from the company.

"I spoke with GM (CEO) Mary Barra to express my deep disappointment in the closure", Trudeau tweeted on Monday.

In 2012, GM closes a consolidated plant in Oshawa, a move that was first announced in 2005, and led to a loss of at least 2,000 jobs.

"We can't afford billions in tax giveaways to these large companies when those same companies are pulling up stakes and leaving people out of work", NDP MP Guy Caron said during question period.

The union, he said, "does not accept the closure of the plant as a foregone conclusion" and "will vigorously fight again to maintain these good-paying auto jobs".

Barra did not link Monday's cuts to tariff pressures, but said trade costs are among the "headwinds" GM faces as it deals with broader technology change and market shifts.

She said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust with it.

"They told me straight up there's nothing we can do", Ontario Premier Doug Ford told lawmakers, according to CBC.

"Today is a hard day for the workers at the General Motors Oshawa Assembly Plant".

Bobbi Marsh, who has worked assembling the Chevrolet Cruze compact vehicle at the OH plant since 2008, said she can't understand why the factory might close given the strong economy.

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