General Motors Co. said Monday it will halt production at five plants in the United States and Canada, while cutting about 15 percent of its salaried employees in North America in a bid to trim costs amid slowing sales.
All of the plants — three assembly plants and two transmission plants — will stop production next year. The planned job cuts will include 25 percent of its executives so as to streamline decision-making.
«These actions will increase the long-term profit and cash generation potential of the company and improve resilience through the cycle,» GM Chairwoman and CEO Mary Barra said in a statement.
GM said the moves will deliver about $ 6 billion in additional annual free cash flow by the end of 2020, consisting of $ 4.5 billion in cost cuts and $ 1.5 billion in reduced capital expenditures.
Canadian Prime Minister Justin Trudeau expressed his «deep disappointment» over the plan to halt operations at the Oshawa, Ontario assembly plant.
«GM workers have been part of the heart and soul of Oshawa for generations — and we’ll do everything we can to help the families affected by this news get back on their feet,» he said in a Twitter post.
The four American plants employ a combined 3,800 hourly and salaried staff, while the Oshawa facility employs 2,900, according to CNN.
All — Kyodo News+