Why is GM making such drastic cuts now?

GM to Close 8 Plants, Lay Off Close to 15,000 Workers

GM to Close 8 Plants, Lay Off Close to 15,000 Workers

GM said Lordstown is one of five factories up for possible closure as it restructures to cut costs and focus on autonomous and electric vehicles. In a 2017 rally in Youngstown, Ohio, near one of the factories GM announced it would shutter, Trump said "after years and years of sending our jobs and wealth to other countries, we are finally standing up for our workers and for our companies".

The company also said it will stop operating two additional factories outside North America by the end of next year, in addition to a previously announced plant closure in Gunsan, Korea. Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario. We've got to think about all those people and all the others who don't work at GM who are going to be impacted from trucking companies, logistics companies.

But its outlook is bleak after GM announced production of the Chevy Cruze would stop in March, halting work at the assembly plant that already had lost two shifts and 3,000 union jobs since the beginning of past year. Production has accordingly been halted as part of GM's plan to save $6 billion annually in the coming years.

The shift by United States consumer preferences have been away from passenger cars to larger, more comfortable SUVs and pick-up trucks has been swift and severe, leaving automakers scrambling to readjust.

Stocks Crushed: Dow Falls 550 Points, Retail and Tech Wrecked
The Dow also gave up its gains to end flat, while the S&P 500 ended near its session lows, a sign of lingering bearishness. Apple , Microsoft and Amazon , the most valuable companies on the market, sustained some of the worst losses.

Canadian Prime Minister Justin Trudeau said he spoke with Barra and expressed "deep disappointment".

Trump told reporters he was not happy with GM's decision to idle a plant in Lordstown, Ohio. In October, nearly 65 percent of new vehicles sold in the USA were trucks or SUVs. The company, which came out of bankruptcy only a few short years ago, has to take steps to remain "lean" and "agile", according to its CEO. The Detroit-Hamtramck facility is GM's last in the city, and the Lordstown plant in OH was one of its biggest.

Trump separately told The Wall Street Journal on Monday that General Motors Co should stop making cars in China and make them in the United States instead.

"For decades, workers in the Mahoning Valley have made a commitment to GM, and today GM let Northeast Ohio down", said Sen.

Golden State Warriors star Stephen Curry involved in multi-car crash
Warriors star Stephen Curry appears to be uninjured after being involved in a three-car crash Friday, according to ABC7 News. California Highway Patrol Officer Herman Baza said the first crash occurred on Highway 24 about 8:45 a.m.

Many of those who will lose jobs are now working on conventional cars with internal combustion engines. GM wouldn't disclose how many employees have accepted the buyout.

The New York Daily News adds that, "i$3 n terms of workforce reduction, GM also plans to cut 15 percent of its 54,000 salaried employees, and even slashing global executive positions by 25 percent". Follow the last link and read the Free Press's analysis and you come away thinking that GM chose this moment simply because the economy's so good. So I said: "'Then put a auto that is selling well in there but get it open fast'".

At a rally near the plant a year ago, Trump talked about passing by big factories whose jobs "have left OH", then told people not to sell their homes because the jobs are "coming back".

There is also a threat that costs of auto parts could rise if the Trump administration goes ahead with plans it is weighing to put tariffs on imported vehicles and parts.

Cold and brisk temps for your Thanksgiving weekend
Flights in and out of JFK Airport could also be delayed because of the gales, as a blast of Arctic air arrives from Canada. Or, the region could challenge a record for its coldest Thanksgiving on record - a high of 31 degrees in 1930.

The maneuvers by GM amount to a major restructuring, and it's still too soon to say what kind of long-term impact it will have on the company's stock price.

Recommended News

  • Russian seizure of Ukrainian naval ships off Crimea sparks alarm

    Russian seizure of Ukrainian naval ships off Crimea sparks alarm

    The best way to accomplish that is to control the highly strategic Strait of Kerch , the narrow waterway between the Black Sea and the Sea of Azov .
    Thunder rookie Hamidou Diallo carted off on a stretcher

    Thunder rookie Hamidou Diallo carted off on a stretcher

    Clearly in pain, Diallo moved himself off the court and was under basket for several minutes. Diallo was credited for rebounding Jerebko's missed layup when they went down.
    Health officials warn of romaine lettuce E.coli outbreak

    Health officials warn of romaine lettuce E.coli outbreak

    There are no deaths reported in connection to this outbreak, but one person has developed hemolytic uremic syndrome. The strain of E. coli identified is different than the one linked to romaine earlier this year.
  • First Images From NASA's Insight Lander

    First Images From NASA's Insight Lander

    They actually have a radio transmitter attached to this spacecraft that will be able to determine how the planet wobbles. It will take between two to three months for the robotic arm to place the mission's instruments on the surface.
    Unai Emery says Arsenal can finish in the Premier League top four

    Unai Emery says Arsenal can finish in the Premier League top four

    The longer Arsenal go unbeaten, the more nervous I am that we are going to get our comeupance! Arsenal was in decline. Few would argue that Arsenal look revitalised under Unai Emery after 22 years under Arsène Wenger.
    He's an honest guy - Djokovic defends Zverev after Finals controversy

    He's an honest guy - Djokovic defends Zverev after Finals controversy

    I don't know, Paris [Masters - against Novak Djokovic] or Wimbledon [against Kevin Anderson ]. Roger Federer embraces a "shattered" Alexander Zverev after the match.
  • Trump cuts 'disaster' court out of trans military ruling

    Trump cuts 'disaster' court out of trans military ruling

    In fact, there is considerable evidence that it is the discharge and banning of such individuals that would have such effects". Francisco urged the court to grant all three cases, hear them together and issue a decision by the end of the term.
    Cyber Monday expected to generate record $7.8 billion in online sales

    Cyber Monday expected to generate record $7.8 billion in online sales

    Amazon's Cyber Monday deals officially started on Sunday, November 25 at 5:00 pm PST for Prime members. We've gone through all the Cyber Monday savings to show you the deals that matter the most.
    Attack takes place at Chinese

    Attack takes place at Chinese

    On Friday, armed insurgents attacked the Chinese consulate in the southern Pakistani city of Karachi on the Arabian Sea coast. The spokesman for the Balochistan Liberation Army, Geand Baloch, told Reuters: "There were three suicide attackers".
  • Henderson red card 'not so nice' - Klopp

    Henderson red card 'not so nice' - Klopp

    But Liverpool is still looking to bolster their front line as Jurgen Klopp wants to push for major honors at Merseyside. You have to be ready for all the small things". "We wanted to change him but we were a little bit too late".
    Indian boxing's fab four eye world glory

    Indian boxing's fab four eye world glory

    I also know when to drop guard and when to attack". "I have fought with this girl in Poland and I have beaten her". By reaching the final, she has already become the most successful woman pugilist in the event's history.
    Washington Redskins QB Alex Smith carted off field after gruesome injury

    Washington Redskins QB Alex Smith carted off field after gruesome injury

    For the Redskins, defensive lineman Jonathan Allen was evaluated for a concussion but returned. In a tweet, the team described it as an ankle injury and that Smith would not return.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.