GM plans 10,000 job cuts, five plant shutdowns | CMO Strategy

GM plans 10,000 job cuts, five plant shutdowns | CMO Strategy

In October, nearly 65 percent of new vehicles sold in the US were trucks or SUVs.

On Twitter, Van Hollen wrote: "After President Trump and Congressional Republicans spent months telling us that their tax cuts for corporate billionaires would also boost jobs and wages for workers - this is what American workers get from the Trump Tax Scam?"

GM builds full-size Chevrolet and GMC pickups in Mexico, and it recently announced that a new Chevrolet Blazer SUV will be built there. Truck and SUV plants, on the other hand, operate almost around the clock on three shifts and are at 105 percent of capacity. GM is also responding to a consumer shift away from sedans in favor of trucks and SUVs.

GM say the decision was taken to help its investment in electric and autonomous vehicles, with Barra defending the decision as a pre-emptive step necessary to take during strong economic times to protect the company through future economic slowdown.

But isn't the economy on solid footing?

"I spoke with her when I heard they were closing and I said, 'You know, this country has done a lot for General Motors".

Trump's ominous posts followed comments he made to reporters Monday in which he said he had a conversation with GM CEO Mary Barra with whom he was "very tough" about the company's plans.

The plant in Lordstown, Ohio, which makes the Chevrolet Cruze compact auto also is on the list, and Barra said the Cruze would no longer be sold in the U.S. Production would stop March 1. The Baltimore Operations plant will stop building transmissions, and likewise the Warren Transmission Operations site in MI.

The auto giant will also close two more plants outside North America by the end of 2019, while its assembly facility in Gunsan, South Korea, was shuttered in February this year.

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Among the possibilities on the chopping block are the Detroit/Hamtramck assembly plant, which makes the Buick LaCrosse, the Chevrolet Impala and Volt, and the Cadillac CT6, all slow-selling cars. They make a vehicle called Chevy Cruze.

Are other automakers planning similar cuts?

While industry-wide passenger vehicle sales were down 13.2 percent through the first nine months of the year, pick-up truck and SUV sales rose 8.3 percent. However, after an automaker sells 200,000 electric vehicles, that manufacturer gets phased out of the program over the course of about a year. Ford has said it is restructuring and will lay off an unspecified number of white-collar workers.

Its North American salaried workforce, including engineers and executives, will shrink by 15 percent, or about 8,000 jobs.

But the single largest batch of job cuts by a US automaker in 17 years wasn't greeted as grim news by shareholders.

"The president wants to see American companies build cars here in America not build them overseas and he is hopeful that GM will continue to do that here", she said.

Kudlow also made it plain that the agreement would be signed by representatives of all three countries later this week when G20 leaders gather in Buenos Aires for their annual meetings, something that's been in question as Canada and Mexico seek an end to their tariff standoff with the US over steel and aluminum.

GM shares were trading around $37.78 as of 3:35 ET on Monday.

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