Metro Detroit reacts to looming General Motors plant and worker cuts

Anna Jefferson
November 28, 2018

The company said Monday it plans to cut about 8,000 of its 54,000 salaried workers in North America. Some will take buyouts while others will be laid off.

About 6,000 factory workers could lose jobs in the USA and Canada, although some could transfer to truck plants. In 2009, for instance, GM announced that it meant to close a huge assembly plant in Orion Township, Michigan, north of Detroit.

The shift by U.S. consumer preferences have been away from passenger cars to larger, more comfortable SUVs and pick-up trucks has been swift and severe, leaving automakers scrambling to readjust. In October, nearly 65 percent of new vehicles sold in the USA were trucks or SUVs.

GM electric vehicles are eligible for a $US7,500 ($A10,382) tax credit under federal law, but it is not clear how the administration could restrict those credits or if he had other subsidies in mind. But we will all together get the point across to General Motors.

The White House is threatening to curtail federal subsidies for electric cars in response to General Motors' decision to shut down auto production at plants in OH and MI.

In the Indian market, GM used to retail Chevrolet cars but had halted domestic sales in 2017.

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"I implore President Trump to keep his word when he came to the Mahoning Valley previous year and promised jobs were 'all coming back".

GM said it will take pre-tax charges of $3bn to $3.8bn to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6bn by the end of 2020.

"You may find additional announcements coming on that topic".

Trump's ominous posts followed comments he made to reporters Monday in which he said he had a conversation with GM CEO Mary Barra with whom he was "very tough" about the company's plans.

While the company said in its quarterly earnings late last month that it saw costs jump by US$400 million due to Trump's tariffs on steel and aluminium, a spokeswoman said the latest decisions "are not related to any recent trade or tariff decisions".

GM's stock price surged on the heels of the announcement, closing at 37.65, up almost 5 percent on the day.

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The reductions could ripple through auto parts suppliers such as Aptiv and Magna International, Michaeli said.

Barra said the 110-year-old auto maker would prepare for the future by doubling investment into developing self-driving and electric vehicles.

"He's looking into what those options might look like", she said. "This is their statement about the future - it may be completely wrong, but I don't think that politics has much to do with it", she said. He says he told the company that the us has done a lot for GM and that if its cars aren't selling, the company needs to produce ones that will. They could close or they could get different vehicles to build.

While GM is buying out and laying off workers in its core auto operations, the automaker has added close to 1,000 people in the past year at Cruise. I believe they'll be opening up something else.

GM will jettison the Buick LaCrosse, Chevrolet Impala and Cadillac CT6 sedans next year.

The plant in Lordstown, Ohio, that makes the Chevrolet Cruze compact vehicle is on the possible closure list.

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GM will stop producing cars and transmissions at the plants through 2019.

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