Monday , June 21 2021

General Motors announces dismissal of 27 thousand workers to save $ 6,000 million | Economy

US auto giant General Motors announced Monday that It will cut 15% of its workforce as part of a major restructuring for save 6,000 million dollars by 2020, in order to adapt to "changing market conditions".

The plan, which will eliminate Apart from the 180,000 employees of the company in the world, includes the closing of three assembly plants in North America In 2019, among them one in Ontario, Canada, and the rest in the United States.

In addition, GM foresees the cessation of activities in other production plants, even outside of North America, with the objective of "prioritizing future investments" for your next generation of electric vehicles.

"The actions we are taking today continue our transformation to be agile, resilient and profitable, while giving us flexibility for future investments," company executive director Mary Barra said in a statement.

Meanwhile, US President Donald Trump, who seeks to boost the industrial sector to boost economic growth, said he was "upset" at the news.

According to the president, he said Barra in a communication. And he said: "We have a lot of pressure on them."

Looking at the long term

The executive director of GM explained the decision: "We recognize the need to anticipate changing market conditions and to customer preferences to position our company for long-term success. "

The company indicated that as the current offer of vehicles is optimized, "it is expected that more than 75 percent of GM's global sales volume It comes from five vehicle architectures at the beginning of the next decade".

So, GM It seeks to focus its production on the most profitable vehicles, like trucks and SUVs. In a call with investors, Barra said that some of the models, such as the Chevrolet Cruze, will no longer be available in North America.

Another consequence of the plan is the impact on the financial performance of the company in the last quarter of 2018 and the first of 2019. The exceptional charge will be between 3,000 and 3,800 million dollars.

"Heart and Soul" by Oshawa

The restructuring will sweep with 15% of 180,000 jobs, among which is included a cut of 25% of employees in executive positions to "streamline decision making".

The Canadian plant that will be closed, located in Oshawa, currently employs about 3,000 workers.

Shortly after the spread of the GM plan, Canadian Prime Minister Justin Trudeau, was "deeply disappointed" by the decision of the company.

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

Under the rain, plant workers showed up after the news broke up preventing access to trucks.

"The media learned before us that there would be an announcement; It's a slap, "he told AFP Jackie, who has been working for the company for seven years. "This will affect many people, restaurants and city merchants," he added.

Hundreds of workers, some crying, found themselves in the local union, Unifor, whose leaders met with management early in the afternoon.

"We will fight with nails and teeth next year"Said Unifor president Jerry Dias at the press conference, who represents the workers at the Oshawa plant.

According to the leader, he will meet with Trudeau. "We will tell the government that We must use all the means, all the tools, all the power of the government to ensure that General Motors understands that he will not betray this country again, "he said.

GM had already announced plans to stop operations at its Gunsan plant in Korea.

The share price of GM stopped before the announcement. Upon restart, 20 minutes later, the stock prices showed higher than 6%.

The restructuring follows a similar Ford movement to reduce the number of models it manufactures.

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