GM will cut up to 14,000 workers in North America as it faces restructuration.
General Motors (GM) will slash car production in North America and halt production of several low-selling brands.
The company said it will no longer make the plug-in hybrid Chevy Volt, ceasing production on March 1st, 2019, also, it plans to “unallocate” three assembly plants — in Oshawa, Ontario; Detroit, Michigan; and Warren, Ohio — putting the future of those plants in doubt.
This move puts at risk an estimated 14,000 jobs between factory workers and white-collar employees.
Through a press release, GM mentioned these actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis.
GM Chairman and CEO Mary Barra continued explaining: “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 (…) We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
Trade war involved?
GM delivered 3,949 Bolt EVs during the last three months of 2018 versus 6,710 units during the same period in 2017. That’s a 41.1 percent decrease in sales in the US, which is the biggest market for GM’s flagship all-electric vehicle.
According to The Verge, it’s unclear what effect, if any, President Trump’s trade war with China had on GM’s decision. But pundits expect Democrats to make an issue of it as the 2020 presidential election nears.
Today we announced new actions to accelerate our transformation to help create a #ZeroCrashes, #ZeroEmissions and #ZeroCongestion world. That means making hard decisions now to stay ahead of changing market conditions, positioning us to lead the future. https://t.co/nzTLlqTPjC
— General Motors (@GM) November 26, 2018