Saturday , June 19 2021

General Motors closes plants

The company would exclude 10,000 employees, because it is preparing for the slowdown and rate extensions in the US.

General Motors ended the months of transcendence and speculation surrounding the restructuring of his business yesterday, and will close at least five of the United States and Canada in the run-up to the global economy and electric vehicles. autonomous

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"We are making decisions when we are in the economy of the economy," said Mary Barca's CEO. "This industry is changing rapidly and we need to be sure that we are well positioned. We believe that it is appropriate for a strong and economical company."

The executive sees "future contexts" in the future, as regards the possible slowdown in the US economy, its main market. The first economy of the planet's sales sector has declined since 2016 and this year it could be under 17 million new units. In China, the second most important GM business, activity has also fallen.

However, the company also acknowledged the uncertainty of trade, when the cross-rate tariffs between the two major economies of the planet were worried about investors. The GM has ensured that imports of steel and aluminum imports have already surpassed the cost of $ 1 billion.

The largest automobile in the United States – will close four United States Detroit, Baltimore and Ohio venues next year, as well as Ontario's Canadian city. In total, measures will be divided between 8,000 and 10,000 workers, including a quarter of its executives, to make decisions more effective.

By the end of 2019, the company also evaluates the closure of two other facilities in other parts of the world, since it was announced in Guns, South Korea, its assembly plant. In Latin America, the company has offices in Mexico and Brazil.

The announcement of the renewal was well received by investors, who were punished by the company year. GM's shares were down 7.9% yesterday at US $ 38.75, the highest price in July.

Time to adjust

The announcement of the change aims to reduce GM $ 4,500 million and reduce capital costs over $ 1,500 per year.

Likewise, the company will have to build some of its models (Buick LaCrosse, Chevrolet Cruze and Cadillac CT6, among others), based on the development and production of electric vehicles and self-driving. This means that GM transversal equipment can be strengthened, the unit responsible for the development of unleaded cars. In the last year, some 1,000 workers have grown in San Francisco.

But the company's adaptation efforts were not all celebrated. Trump said yesterday that he spoke internally and said "we put a lot of pressure on it," because the plants are not closed, some of them in the wins of the 2016 Presidential wins.

Meanwhile, Canadian Prime Minister Justin Trudeau told Twitter that "full depth" GM's CEO in Oshawa, Ontario closed its 65-year history and closes around 2,200 employees. This country is the last factory in the company. Finally, in Toronto, there is a risk of going to Mexico. The authority said that "we will do everything we can to stand up for affected families."

Meanwhile, Detroit Mayor Mike Duggan has said the GM's decision is "disturbing," and is "ready to meet all the available space in manufacturing at GM or other related companies."

Momentum industry

After ten years, a new scenario of automobile automobile industry uncertainty is expected in the field of electric and autonomous automobiles, in terms of technology and consumption, and share mobility.

Other major US companies have announced dramatic actions this year. Ford said in April it will reduce the production capacity of its sedan and cut its annual cost of 2022 million dollars by 2022.

"The sale of new vehicles is questioning interest rates and higher costs," said Jonathan Smoke, chief economist, Cox Automotive. "Historically, large purchases such as homes and cars are lagging behind. The interest rate was historically low at that time, the sales record officially ended," he said.

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