General Motors to close seven factories, axe 15% of workforce

by James Attwood, Autocar UK 27 Nov 2018


The Chevrolet Cruze is one of the models set to be axed in North America

General Motors is planning to shut seven factories and shed 15 percent of its workforce as part of a major restructure that will also involve shifting investment into developing autonomous and electric vehicles.

The US firm has struggled with falling sales in recent years prompting a major revamp, which has included selling Vauxhall and Opel, its British and European brands, to the PSA Group. GM had previously axed Chevrolet's UK arm in 2014.

In North America, GM's sales have been hit hard by falling demand for saloon cars, and the firm is set to follow rival Ford’s lead in culling most of its saloon models to put greater emphasis on SUVs and pick-up trucks. According to reports, the Chevrolet Cruze and Impala, Cadillac CT6, Buick LaCrosse and Chevrolet Volt hybrid will all be axed.

GM has now announced it is planning to close five North American plants by the end of 2019: assembly facilities in Detroit, Ohio and Ontario, Canada; and transmission factories in Michigan and Maryland. It will shut two unnamed plants outside North America, in addition to the previously announced closure of a plant in Korea.

As part of a ‘staffing transformation’, the firm is also aiming to reduce its workforce by around 15 percent – about 18,000 jobs – which it says will include cutting 25 percent of its executive staff. GM expects the move to reduce costs by around £3.5 billion (Rs 31,808 crore).

Having developed new vehicle platforms, GM says that future investment will be focused on developing its next-generation battery-electric vehicles.

Also read: Vauxhall to cut hundreds of jobs at Ellesmere Port in 2019

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