GM to shutter five factories and cut roughly 14,000 jobs
General Motors (GM) plans to shutter five factories in North America and cut roughly 14,000 jobs.
The company cut 15 percent of its salaried and salaried contract staff, including a 25 percent cut of executive roles, and will leave three assembly plants and two propulsion plants idle in 2019.
These actions will contribute to a savings of about $6 billion and $4.5 billion in cost reductions, according to a GM announcement.
Assembly plants unallocated include:
- Detroit-Hamtramck Assembly in Detroit, Michigan.
- Lordstown Assembly in Warren, Ohio.
- Oshawa Assembly in Oshawa, Ontario, Canada.
Propulsion plants unallocated include:
- Baltimore Operations in White Marsh, Maryland.
- Warren Transmission Operations in Warren, Michigan.
GM will also cease the operations of two additional plants outside North America by the end of 2019 following a closure in Korea announced previously.
"These manufacturing actions are expected to significantly increase capacity utilization," according to GM. "To further enhance business performance, GM will continue working to improve other manufacturing costs, productivity and the competitiveness of wages and benefits."
