GM to close Oshawa plant, four US plants

GM to slash 14,700 jobs in North America

Additionally, the automaker said that it would shut down its propulsion-component plants in Maryland and MI, and idle two additional, unnamed assembly plants outside the US.

The restructuring reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, nearly 65 percent of new vehicles sold in the US were trucks or SUVs. It was about 50% cars just five years ago. They are working together to come up with a solution that works for GM and the employees.

"We estimate sedans operate at a significant loss, hence the need for classic restructuring", he wrote.

Toyota also has discussed cutting costs, even though it is building a new assembly plant in Alabama.

Altogether, GM has five vehicle factories with plenty of unused capacity in Kansas City, Kansas; Lordstown; and Detroit-Hamtramck, Lansing, and Orion Township, Michigan.

Rivals Ford Motor Co and Fiat Chrysler Automobiles NV have both curtailed USA vehicle production.

Shares of GM, the largest automaker in the USA which sells the Chevrolet, Buick, Cadillac and GMC brands, rose almost 6 percent on the news to $37.93 in midday trading Monday.

"In contrast to times past, General Motors under CEO Mary Barra is trying to get ahead of a potential crisis by making cuts now", Michelle Krebs of Autotrader said in a client note.

Barra did not link Monday's cuts to tariff pressures, but said trade costs are among the "headwinds" GM faces as it deals with broader technology change and market shifts.

Barra said GM is still hiring people with expertise in software and electric and autonomous vehicles. The company said this is part of a plan that restructures to cut costs and focus more on autonomous and electric vehicles.

The No. 1 USA automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America, with the aim of reducing headcount by 18,000.

If nothing else, losing $1 billion to higher import taxes may have forced GM to take more dramatic steps more quickly than otherwise would have.

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GM plans to reduce annual capital spending to $7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period.

Not allocating product doesn't mean the plants will close, but it puts their future and the jobs of roughly 6,300 hourly and salaried factory employees-3,300 in the US and 3,000 in Canada-at risk heading into contract negotiations with the UAW in 2019 and Canadian union Unifor in 2020.

"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", Trudeau said on Twitter.

The closures also drew sharp criticism from the United States and Canadian labour union representing GM workers, which accused the company of shifting production overseas at the expense of North American workers.

The Auto Union is precisely one of GM's problems.

"Get a vehicle that is selling well and put it back in", Mr Trump said.

GM will stop making the Chevrolet Cruze, the Chevrolet Volt plug-in hybrid, and large sedans including the Chevrolet Impala, Buick LaCrosse and Cadillac CT6.

GM plans to halt production next year at three assembly plants - Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario.

The decision, announced Monday, will impact Detroit-Hamtramck Assembly in Detroit, Lordstown Assembly in Warren, Ohio, and Oshawa Assembly in Oshawa, Ontario.

Let's start in the U.S. If GM wants to close those OH and MI plants, it can't just lock the doors tomorrow and throw the keys away.

There are many moving parts to GM's announcement Monday.

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