GM to slash 14,700 jobs in North America

Roman Schwartz
November 27, 2018

Sources tell 680 NEWS that GM is set to announce it will be phasing out operations over the course of the next year at the plant, which dates back to 1918.

Barra said the Cruze would no longer be sold in the U.S. Production would stop March 1.

The decision comes as the largest US automaker is poised to idle an assembly plant in Canada.

A former Canadian auto executive said it would be hard for Canadian government officials to entice GM further to keep the plant open.

GM opened the Lordstown plant in the late 1960s.

"We still have a lot of opportunity for discussion to take place", said Chiodo.

Just one year later, GM announced that Mexican made models of the new Chevy Cruze would be shipped to vehicle dealers in the United States, but said that the Mexican production would not impact Lordstown.

Kris Tripplaar/Sipa USA/NewscomSpeaking to a cheering crowd in Youngstown, Ohio, in July of a year ago, President Donald Trump promised more jobs would soon be flowing to the blue-collar city.

Ford, who is scheduled to address the issue in a media availability later Monday, expressed his concerns for the well being not only of GM workers, but the thousands employed in the broader supply change and also in local businesses that depend on these customers. Another two will close outside North America.

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Shares of GM, the largest automaker in the US which sells the Chevrolet, Buick, Cadillac and GMC brands, rose almost 6 percent on the news to $37.98 in Monday afternoon trading. They could close or they could get different vehicles to build.

"While the union does not have complete details of the overall announcement we have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019", read the statement.

The cuts will make GM "lean and agile" as the company aims to "lead in autonomous and lead in electric vehicles", Barra said.

The cuts will happen during the remainder of the year and the first quarter of 2019.

"Instead of using its massive tax savings to increase employee wages or invest in its workforce, GM is shuttering plants and cutting jobs to increase profits and further enrich shareholders". "They better put something else in", Trump, who has pushed for more manufacturing jobs throughout his nearly two years in office, said. "Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement".

GM shares rose as much as 7.8 percent following the announcement, and were almost 6 percent higher at $37.97 in midafternoon trading. Propulsion plants targeted are Baltimore Operations in White Marsh, Md., and Warren Transmission Operations in Warren, Mich. Layoffs would amount to 14,700 jobs. But investors obviously like what they see so far: the company moving to cut its labor costs to brace for lower vehicle sales, even if it means putting thousands of workers on the unemployment line.

Detroit-Hamtramck now builds the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse, Cadillac CT6.

Lordstown, which has dropped from three shifts to one in recent years, exclusively produces the Chevrolet Cruze.

"GM workers have been part of the heart and soul of Oshawa for generations - and we'll do everything we can to help the families affected by this news get back on their feet", Prime Minister Justin Trudeau said in a tweet.

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