General Motors will close five factories and eliminate models from its catalog
Since it re-emerged from its last major crisis, in 2008 , General Motors has not been able to find your site. Closed Hummer and Daewoo , along the way killed Saab and finally, sold to the PSA Group Opel/Vauxhall . However, and despite all the adjustments he has made, his numbers are not what he would want. Therefore, to adjust them, at the beginning of the year it announced that it would close a factory in South Korea .
However, it seems that General Motors numbers still do not match. For this reason, it has announced a new package of measures with which now, yes, it hopes to reach its objective: to be profitable. To achieve its objective, it has focused its strategy on two basic pillars: closure of productive centers and reduction of range . But in addition, and although it has not been confirmed, it seems that it will follow Ford's path, that is, offer more SUVs to its customers.
What future awaits General Motors?
The most important and drastic change for the American conglomerate is the readjustment of its productive centers strong>. As announced, there will be five factories that will close next year (2019). The "graceful" are: Oshawa (Canada), Detroit-Hamtramck (Detroit), Lordstown (Ohio), Baltimore strong> (Maryland) and Warren (Michigan). The first three are focused on the assembly of models and the last two in gearboxes and engines.
When these facilities close, some 15 thousand workers will lose their livelihood. However, General Motors has announced that approximately half will be relocated to other centers. Those who manage to save themselves will have to recycle, as they will be transferred to facilities dedicated to the assembly of electric vehicles . However, the loss of employment in the United States will be very important, joining those of South Africa and India.
The second leg of its strategic plan is to guillotine the future of several of its models. Starting with Buick , the LaCrosse sedan will leave the market when the current generation runs out of business. From Cadillac , it will be the CT6 and XTS that will leave your range through the back door. Finally, Chevrolet , you will see how the Cruze , Impala and Volt will leave the market without relief in sight.
With these drastic readjustments, they expect the savings to be 6 billion dollars by the end of 2020. Of this amount, some 4.5 billion will be in productive costs and the rest in capital savings and management expenses. In any case, the firm has invested in new platforms for trucks, crossovers and SUV . Therefore, it will follow in a veiled way the path taken by Ford.
Source - General MotorsYou may be interested