Generals Motors will close seven factories around the world

Generals Motors will close seven factories around the world

The automaker will save about $ 6 billion with its restructuring plan that will reduce the workforce by 15%

  The automaker Generals Motors will restructure the company closing seven plants around the world until 2020 to save about 6,000 million dollars. Four will be in the United States (two assembly and two production of engines) and another in Canada, but the closure of the two remaining have not yet been confirmed but will be outside North America by the end of 2019, as confirmed by the company itself in a release.

  In a process of "reorganization" of its staff to "align manufacturing capacity", the company will reduce the workforce by 15% , of which 25% will be executives "to expedite decision-making". According to GM, the closures of these factories will save about 6,000 million dollars.

The five North American plants affected by the advertisement employ some 14,500 workers and are the assembly of Oshawa (Canada) and the Americans of Detroit-Hamtramck and Lordstown, in addition to those of Baltimore and Warren, which produce engines and transmissions. These seven closures are added to the already announced assembly plant in Gunsan (South Korea).

The Canadian plant that will be closed currently employs about 3,000 workers. The workers' union announced that it will hold a press conference on Monday. Shortly after the broadcast of the GM plan, Canadian Prime Minister Justin Trudeau was "deeply disappointed" by the decision of the company.

However, the president and CEO of GM, Mary Barra, said that "the actions we are taking today continue our transformation to be very agile, resilient and profitable, while giving us the flexibility to invest in the future." "We recognize the need to stay ahead of changing market conditions and consumer preferences so that our company is in a position to achieve long-term success," added Barra.