DETROIT – General Motors (NYSE: GM) will accelerate its transformation for the future, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, capitalize on the future of personal mobility and drive significant cost efficiencies.
Today, GM is continuing to take proactive steps to improve overall business performance including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce. These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis.
“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 CEO Mary Barra. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
General Motors might be referring to what went down yesterday as “transformation for the future”, but to the gearhead world at large, what happened was that the Grim Reaper came down and started playing Duck-Duck-Goose throughout GM’s footprint. You want to know how bad things are going to be in the name of change for the future? Here’s the basic rundown of what is going to go away in the name of freeing up six billion dollars by 2020 as part of GM’s “Zero Crashes, Zero Emissions, Zero Congestion” plan:
Car Lines:
- Chevrolet Impala, Buick LaCrosse, and Cadillac XTS (Epsilon II platform)
- Cadillac CT6 (Omega platform)
- Chevrolet Cruze (D2XX platform)
- Chevrolet Volt (D2UX platform)
- GM K2XX pickup lines
Assembly Plants:
- Oshawa Assembly in Oshawa, Ontario, Canada (Impala, XTS, current Silverado/Sierra)
- Detroit-Hamtramck Assembly, Detroit, Michigan (LaCrosse, CT6, Impala, Volt)
- Lordstown Assembly, Warren, Ohio (Chevrolet Cruze)
- Two additional as-yet-unknown overseas plants
Propulsion Plants
- Baltimore Operations, White Marsh, Maryland (Allison 1000 automatic)
- Warren Transmission Operations, Warren, Michigan (6T70/6T75 transaxles, GFE electric drive units)
Employees:
- 15% of salaried and salaried contract staff
- 25% of executive staff
The only car line that was known to be killed off were the GM trucks. The K2xx line is the previous-generation truck line that was due to be phased out anyways. After that, what do you see? That’s right…cars. Small cars, large cars, in-between cars, and surprisingly, the Volt, the one car that would make sense to keep around in the name of a push towards a greener tomorrow.
Already, there are shockwaves rippling after this bomb got dropped. Oshawa has been in contention to close for years with bitterness occurring in Ontario as a result. Union workers walked out Monday once the news circulated, though they will be back to work today. Ohio leadership have already been very vocal about the Lordstown plant, with Ohio Senator (D) Sherrod Brown calling the move “corporate greed at it’s worst.” The UAW has already voiced their opinion in a statement issued by Terry Dittes, UAW Vice President, Director GM department:
“This callous decision by GM to reduce or cease operations in American plants, while opening or increasing production in Mexico and China plants for sales to American consumers, is, in its implementation, profoundly damaging to our American workforce. GM’s production decisions, in light of employee concessions during the economic downturn and a taxpayer bailout from bankruptcy, puts profits before the working families of this country whose personal sacrifices stood with GM during those dark days. These decisions are a slap in the face to the memory and recall of that historical American made bailout.”
Depending on what goes down between GM and the UAW, if everything on this list comes to fruition, you will see the most extensive re-working of General Motors since the deaths of Pontiac, Saab, and the Hummer brand. And, from what we can see, you will see GM fall lock-step behind Ford in the “no more cars” pattern.
My 2017 Cruze is one of the best cars I have ever had as a DD. I cannot understand why they aren’t selling. What’s going to happen when the price of gas hits $5 again. All of those trucks won’t be looking as good then.
going to be interesting when fuel prices go up, truck and SUV sales dive, and there are no domestic small, fuel efficient, affordable cars to be found…
“If I’m elected, you won’t lose one plant, you’ll have plants coming into this country, you’re going to have jobs again, you won’t lose one plant, I promise you that.”
\”If you like your doctor, you can keep your doctor. If you like your healthcare plan, you can keep your plan.\”
\”Osama Bin Laden is dead, and General Motors is Alive!\”
More short-sighted greedy people a the top of the food chain–SHAME SHAME SHAME–There will be NO middle class jobs in the future hence no one to buy their products–STUPID STUPID STUPID
Canada has been and will always be a part of auto manufacturing. After 3 new Chevys, my next choice of new cars are Chevy Equinox and Toyota Rav, both built within 10 miles of each other here in Ontario. And every Challenger and Charger comes from here too. American car means North American and I guess that includes Mexico. Where’s your wall now, orange one?
Government Motors……no thanks. Actually, any new car, no thanks. The orange one? After 8 years of Oblamer, anyone else is an improvement. Will Canada always build cars? Hmmmmmm……maybe?
I’m really quite ready for this idiotic love affair with CUVs to stop. I would really love to be able to buy a new version of a B Body style 3 row wagon again.
They can shut all their plants down and switch production to anal pleasure enhancement devices for all I care….
After Brexit, you won’t even have that kind of production on that island of yours.
sez the king of all he surveys from his little island – careful Geordan we might let you starve this time
If only the company supplying Geordie a keyboard would shut down….
A day without comments from Geordie is a day without a sense of humour. It’s a serious topic but don’t die without laughing.
Maybe the North Eastern fellow has more great ideas about how cities can recover from the loss of major motor companies can revitalize like some parts of downtown Detroit
Trump could do what Obama did and just hand GM millions to keep the doors open. Look how well that turned out for the American taxpayers.
Canadian government bought hundreds of millions in GM Canada stock ten years ago, bailed out the company for a while, then sold it at a profit.
Governments cannot just pour money in to save jobs with no other return
The mainstream media outlets are making this seem like a surprise…
IT IS NOT!!!!!
This has been coming for awhile now. GM didn’t evolve, with market conditions, and now they are paying the price. Other companies switched to 100% flexible facilities, that could produce multiple styles of vehicles, years ago. GM has to many, one car factories.
The cars being dropped, have been, gathering dust on Dealer Lots for several years now.
Smart move (sarcasm) on the General. Hope all these car companies are caught with there pants down when oil goes up. Some say oil will never hit $100 a barrel again but never say never.