Trump says 'not happy' about GM job cuts

GM to slash 14,700 jobs in North America

GM to slash 14,700 jobs in North America

What happens to those plants will be discussed during contract talks with the United Auto Workers union next year. Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario.

But its outlook is bleak after GM announced production of the Chevy Cruze would stop in March, halting work at the assembly plant that already had lost two shifts and 3,000 union jobs since the beginning of a year ago.

Jerry Dias, president of Unifor, the Canadian labour union, said he "will vigorously fight again to maintain these good-paying auto jobs".

Still, several Twitterians suggested that GM was not the only one to be blamed and noted that the government could do more to save the plant.

"We still have a lot of opportunity for discussion to take place", said Chiodo. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the OH plant, and an overall strategic shift towards more popular crossover and SUV models.

While the company said in its quarterly earnings late last month that it saw costs jump by US$400 million due to Trump's tariffs on steel and aluminium, a spokeswoman said the latest decisions "are not related to any recent trade or tariff decisions".

Some 8,000 salaried employees and 6,000 hourly workers will either lose their jobs or be reassigned to other plants, and more layoffs are likely on the horizon, industry experts said. Two of the plants made engines and parts for those cars.

In a statement, Governor John Kasich said the news was "frustrating" but said he would work with GM to try to preserve the plant.

U.S. Senator Rob Portman, a Republican from OH, said he's "deeply frustrated" with GM's decision to shut down a plant in Lordstown and is pressing Barra to come up with an alternative product for the factory.

The General Motors assembly plant in Oshawa, Ontario, Canada, Nov. 26, 2018.

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"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.

The move provoked an immediate rebuke from President Donald Trump, who warned GM it was "messing with the wrong person" - and demanded the auto maker shut factories in China instead.

The cuts come on the heels of surprisingly strong third-quarter earnings.

Both U.S. vehicle assembly plants scheduled to stop production next year now build slow-selling passenger cars.

GM did not immediately comment on Trump's remarks, but the company noted it has other facilities in OH including a transmission plant in Toledo and metal center in Parma.

Chiodo points out GM has yet to officially announce a plant closure - just that there will be no product. "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".

Further plants in White Marsh, Maryland, and Warren, Michigan will be "unallocated".

The plant produces the Chevrolet Impala, the Cadillac XTS and the Chevrolet Silverado.

In 2015, assembly of the Chevrolet Camaro in Oshawa ended and in 2016, assembly of both the Chevrolet Impala and Equinox came to an end.

On top of the previously announced closure of the assembly plant in Gunsan, Korea, GM will also cease the operations of two additional plants outside North America by the end of next year.

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