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GM to slash jobs and close eight plants

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"General Motors plans to halt production at five factories in North America and cut thousands of jobs.

The US carmaker has also announced it will close three plants outside North America by the end of 2019.

The moves follow rising costs and slowing car sales and come as the US carmaker focuses on its line-up of trucks, electric and self-driving vehicles.

The company said the plan would help it to save about $6bn (£4.7bn).

The cutbacks include a 15% reduction the number of its employees, including 25% fewer executives.

The five plants in North America alone employ about 7,000 people currently.

"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 chief executive Mary Barra.

"We recognise the need to stay in front of changing market conditions and customer preferences to position our company for long-term success."

The firm said it was cutting production of the Buick LaCross, Chevrolet Volt, Cadillac CT6 and XTS and Chevrolet Impala, as well as older versions of the Silverado and Sierra.

The closures include assembly plants in Oshawa, Canada; Detroit, Michigan and Warren, Ohio; as well as factories in Warren, Michigan and outside of Baltimore, Maryland.

General Motors had signalled some of its plans previously.

In February, the company said it would close one plant in South Korea. It also offered buyouts to thousands of workers earlier this year."

Source – BBC News

About the author

Philip Scott

Head of Equities, Director

Philip has worked as a Private Client Stockbroker for nearly 20 years, commencing his career in Operations with Rensburg Sheppards (now part of Investec plc) before spending 9 years with Killik & Co advising on and directly managing portfolios. He joined SI Capital in 2006 to head up the Private Client Advisory desk.

Philip is a regular contributor to local media commenting on stock market dynamics and is a Chartered Member of the Chartered Institute for Securities & Investment (MCSI). His RDR qualification gained special recognitionfrom the CISI for achieving the highest combined pass mark in the country for the Investment Advice Diploma in 2012.

“At SI Capital I enjoy being part of a talented team who collectively share the same desire to provide excellence in service.  My focus is to ensure that each client receives effective and optimal management of their assets.”

Philip lives locally, is married with 2 daughters and is an avid sports fan (if now predominantly from the sidelines).  His other interests include music and film.

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