The moves are the first big steps in the century-old GM's transformation. The company is reinvesting money away from cars that once dominated America's roadways and putting it into technology it believes will power its future.
Overall, the company expects these measures to save it approximately $6 billion per year in expenses.
The moves will result in cash savings of about $6 billion, cost reductions of $4.5 billion and a lower capital expenditure annual run rate of nearly $1.5 billion, according to a company statement. I know some people are also feeling angry and betrayed. Sales of the compact auto were down 27 percent through September, GM said.
As of July, GM had five factories in the US operating significantly below capacity.
Unifor, the union representing more than 2,500 workers at the Oshawa plant, said in a statement that it does not have complete details of Monday's announcement, but it has been informed that there is no product allocated to the Oshawa plant past December 2019.
"Today our generation is facing a new Black Monday in the Mahoning Valley", Congressman Ryan said, "GM's announcement is devastating for the men and women working at Lordstown and everyone here in the Mahoning Valley".
Plants in Baltimore, Maryland, and Warren, Michigan that assemble powertrain components will have no products assigned to them after 2019 and thus are at risk of closure, the company said.
The plant in Lordstown, Ohio, which makes the Chevrolet Cruze compact vehicle also is on the list, and Barra said the Cruze would no longer be sold in the U.S. Production would stop March 1.
"In contrast to times past, General Motors, under CEO Mary Barra, is trying to get ahead of a potential crisis by making cuts now", said Michelle Krebs, executive analyst at Autotrader.
GM said it has no plans to make automobiles at three factories in Oshawa, Ont., Detroit and Warren, Ohio, as well as parts plants in Maryland and MI. It also offered buyouts to thousands of workers earlier this year.
It's unclear how many employees will lose their jobs, since this is part of a larger global restructuring plan, the sources said. The agreement also stipulates that 75 per cent of the automobile's contents must be made in North America in order to be tariff-free.
The Auto Union is precisely one of GM's problems. It will share more components across cars and make better use of computer models and virtual tools.
The vehicle history runs deep in Oshawa.
General Motors will reportedly shut down operations at its plant in Lordstown, Ohio, just over an hour northwest of Pittsburgh.
The GM plant in Oshawa is closing.
"I pressed GM again to provide new opportunities to the Lordstown workers and take advantage of the skilled workforce there". GM has several plants running well below that.
"A downturn in the auto sector meant cuts in the weekly budget, a budget that didn't have a lot of fat to begin with", said Poloz, in a 2016 speech as he was inducted into the Oshawa walk of fame.