GM Closing Lordstown Plant In 2019, Cutting Thousands Of Jobs

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Trump says GM needs to "get a auto that is selling well and put it back" into the OH plant. They could close or they could get different vehicles to build.

Barra told reporters the company is making the cuts "to get in front of it while the company is strong and while the economy is strong".

"We'll work with GM to see if anything can be done to preserve a future for the plant and in the meantime, we've set up a jobs center to help employees find new work as quickly as possible", Kasich said.

"We need to make sure that we are well positioned to compete, not just over the next few years, but well beyond", she said.

The US economy remains strong overall, with the unemployment rate at a near 50-year low of 3.7 per cent.

Senator Rob Portman is urging GM to bring a new the production of another vehicle to the Lordstown plant. The stock is still down about 7 percent this year.

GM's announcement has been met with wide-ranging criticism, led by United States president Donald Trump who told overseas reporters that the auto-maker should replace the slow-selling Cruze built at Lordstown with a more popular model.

GM said the moves will save $6 billion in cash by the end of next year, including $4.5 billion in recurring annual cost reductions and a $1.5 billion reduction in capital spending.

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The company is also halting production or sale of other models, including the compact Chevrolet Cruze, the full-sized Chevy Impala and certain Cadillacs.

The restructuring is part of a shift by GM as it abandons many of its auto models and focuses more on autonomous and electric vehicles.

The Hamtramck and Lordstown assembly plants are now operating on one shift. "That's a real mismatch in a market where 40 per cent of the vehicles sold are crossover utilities".

During a press briefing at the White House, Chief Economic Advsor Larry Kudlow sent the same message.

General Motors on Monday announced plans to halt productions at three factories in North America and to close two propulsion-component plants in the US. He said it was "clear" that GM "doesn't respect" the Lordstown workers, and slammed the vehicle company for not doing enough to reinvest the savings from its tax cuts. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the OH plant, and an overall strategic shift towards more popular crossover and SUV models. The totals are imprecise in part because there may be some double-counting with employees who are taking the October buyout offer.

The five North American plants affected by the move are the assembly plants in Detroit-Hamtramck and Lordstown, Ohio, as well as the one on Oshawa, Ontario, and the two engine and transmission production plants in Baltimore, Maryland, and Warren, Ohio, all of which employ some 14,500 people.

Through the UAW, workers at Lordstown have worked to improve quality, cut the number of union locals to make it easier for GM to negotiate and agreed to the outsourcing of some jobs, in a bid to persuade the automaker to add more models to its factory line.

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