GM To Stop Production At 5 U.S. And Canadian Plants, Slash 15% Of Salaried Workers

Reports about GM’s plan to close the Oshawa plant in Ontario have proven to be true.

Unfortunately, the Canadian facility is not the only one that will become idle starting next year. Things are much worse in the United States, where the automaker has announced plans to stop production at four plants from 2019.

Those include two vehicle assembly facilities and two propulsion factories. GM says the Detroit-Hamtramck Assembly, Lordstown Assembly, Baltimore Operations, and Warren Transmission Operations “will be unallocated in 2019.”

Both U.S. car plants that will stop production currently build slow-selling sedans

In plain English, that means they will produce no vehicles or propulsion components next year and will be at risk of closure. GM says it will allocate future products to fewer plants next year amid “changing customer preferences in the U.S. and in response to market-related volume declines in cars.”

Both U.S. vehicle assembly plants scheduled to stop production next year currently build slow-selling passenger cars. The Detroit-Hamtramck Assembly produces the Buick LaCrosse, Cadillac CT6, Chevrolet Impala, and Chevrolet Volt. Lordstown Assembly builds the Chevrolet Cruze.

Besides the five plants in U.S. and Canada, GM said it would cease the operations of two more plants outside North America by the end of 2019. Those will add to the previously-announced closure of the Gunsan facility in South Korea.

These decisions are expected to lead to savings of approximately $6 billion by the end of 2020: $4.5 billion in cost reductions and $1.5 billion in lower capital expenditure.

GM will reduce salaried staff by 15 percent and executive staff by 25 percent

Closing the aforementioned plants is not all, though. Further measures to achieve this goal include a reduction of salaried workforce and the reorganization of the company’s global product development staffs. GM will reduce salaried and salaried contract staff by 15 percent and executive ranks by 25 percent.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra.

Resources allocated to EVs and autonomous vehicles will be doubled

More specifically, the automaker will double the resources allocated to electric and autonomous vehicle programs, optimize product portfolio by increasing component sharing, and integrate its vehicle and propulsion engineering teams. Furthermore, GM will compress its global product development campuses and expand the use of virtual tools to lower development time and costs.

By early next decade, the company expects more than 75 percent of its global sales will come from just five vehicle architectures.

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  • Karl

    Monday morning massacre!

  • ThisDecepticonWillFU

    And the GMC Terrain, GMC Acadia, Cadillac XT4, Cadillac Escalade, GMC Yukon, Buick Enclave, Chevrolet Traverse, Chevrolet Tahoe, Chevrolet Blazer, Buick Regal, and Chevrolet Suburban are all having a sigh of relief party right now.

  • Stigasawuswrecks

    Right before the big Christmas holiday

  • kachuks

    We went from pink slip, to downsizing, to reallocation. All words for the same sh***y thing.

    On a side note, who saw those neon shorts and second guessed what they were reading?

  • Billy Lthr

    can’t say I am shocked and if I recall none of the workers wanted to retire early so now some of those will have nothing, am I right, will they lose their 401ks and stuff if they are layoff, reduced in workforce?

    • john1168

      They shouldn’t lose the vested part of their 401k’s. The other stuff I’m not sure about. They might get some kind of severance package.

  • pcurve

    Cadillac CT6, Chevrolet Impala,Chevrolet Volt, Chevrolet Cruze Buick LaCrosse, . Wow… we got some real winners here. *sarcasm*. This is a management failure. Sure sedan market has been shrinking, but none of these cars are competitive or desirable. I love sedans but the only vehicle that is remotely interesting is Volt.

    • MarketAndChurch

      Even if they were desirable, they still wouldn’t sell, and certainly not enough to justify their existence. Iagree, the Volt is the coolest car they have.

  • MAYBE IF THE HAD MORE DESIRABLE PRODUCTS.
    IN THE MEANTIME TESLA HAS TO BUILD IN TENTS.

  • ErnieB

    That ugly facelift on the Camaro did em in! Oops lol.. they had to start by firing their design department.

    • performante

      That face-lift has since then been face-lifted.

  • MarketAndChurch

    Compliance with emission/co2 regulations and market preferences for SUV and trucks is pulling the company apart.

  • MarketAndChurch

    Maybe Ford was right.

  • Scott Carmichael

    There is a hard cutoff on fleet orders for the Cruze, Volt, and CT6 for this Thursday. So this Is happening very quickly.

  • NCC 1701-C Dodge Stealth R/T

    The CT6 is gone already? Did they not just introduce that two years ago?

    • Iberian Rekluse

      Wait, what??????

  • erly5

    Another extreme move from a big American car company. I find it hard to believe that demand for sedans will become non-existent in the near future. Those car companies who still believe there’s life left in the sedan will clean up now that Ford and GM have decided to abandon this segment.

    • Bullitt2605

      Would you rather clean up on small percent of the market or a large and ever growing percent?

  • Paul

    Product and its feature content per trim level and styling are the things kicking them in the butt, so instead they throw in the towel.

  • Iberian Rekluse

    Well if this is what it takes to destroy the UAW, I guess we’ll all be better off going forward. Meanwhile, other auto factories are opening in the right to work states that the unions can’t F up!

  • Knotmyrealname

    So many companies are let down at their retail location. I agree.

  • Leo76

    Girl on the pic abowe. It that “usual” working outfit in GM factory?

    • Knotmyrealname

      Women wear whatever they WANT at work. Raise an eyebrow and you’re immediately branded as sexist.

  • Enter Ranting

    Interesting. I wonder how long until BMW cancels the 3, 5 and 7 Series, or Mercedes ends production of the C, E or S Class, to say nothing of Audi.

  • Bullitt2605

    Oh look more VP’s and accountants that don’t have a clue as to how and run a company so they slash pay.

  • Subi-Rubicon1

    The only reason GM, Ford and FCA are killing their sedans is because they can’t figure out how to make them as profitable as their CUVs, SUVs, and Trucks!

  • Craig

    This just in, ‘TIMEX stops making wrist watches and focuses more on TIME MACHINES!”

  • datCubanguy

    So much winning,is scary tho.

  • carlbolt

    The GM top brasses have absolutely no clues on cars since the only car guy left the company, I mean Bob Lutz. What they have done are just playing with several fancy words, “transform”, “trend”, “future”, “electrification”, “autonomous”, “mobility” … and squandering all the money. Now, they see there is no much cash left and economy downturn is coming, more importantly the shareholders are upset and ask them to have a plan, they panicked, as usual the first reaction of panic is to cut.

    • ksegg

      lol Bob Lutz. He wasn’t exactly a prodigy at management nor product design.

      At this point GM might as well try to poach some of GM Europe’s top designers/managers to take over the pathetic North American operations.

      • carlbolt

        more lol, didn’t GM Europe’s top designers/managers make GME loosing money year after year and eventually got the plug pulled?

        As for Bob Lutz I didn’t mean he had good management caliber, which I don’t know. What I meant was he had some sense on cars and he had some passion on cars.

        • ksegg

          Probably, knowing GM’s I wouldn’t put it past them to be gifted with just knowing how to lose money year in year out.

          Lutz did have some sense on cars and had some passion, but he was just a straight up poor leader who made bad calls.

          *shrugs*

  • Six_Tymes

    how much money does she make per year? and what about the hundreds of other over paid managers? they remain with jobs? the ridiculousness continues

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