GM slashing 15% of N. American jobs, discontinuing several vehicle models

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GM is calling the production halt of these two United States plants a "proactive" part of its efforts to transform its product development.

At the factories, 3,000 workers could lose jobs in Canada and another 3,600 in the US.

The progressive group Not One Penny estimated GM's savings from the tax plan total more than $500 million.

Even with the higher spending on electric and autonomous vehicles, GM plans to reduce overall annual capital spending to$7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period. "We have a lot of pressure on them".

GM in recent years has worked to slice costs, with a goal of $6.5 billion in cuts this year alone.

"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 CEO Mary Barra, in a statement.

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At a rally near Lordstown, Ohio, plant last summer, Trump told people not to sell their homes because the jobs are "coming back". The company is reinvesting money away from cars that once dominated America's roadways and putting it into technology it believes will power its future.

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

General Motors is planning to shut seven factories and shed 15% of its workforce as part of a major restructure that will also involve shifting investment into developing autonomous and electric vehicles.

"General Motors' decision to gut its workforce epitomizes the bad corporate behavior Republicans in Congress have incentivized for generations", said spokesman Ryan Thomas.

A little more than a year later, in April 2018, employees at the Lordstown plant were told that production would be cut to just one shift.

After the morning announcement, Barra was to head for Washington to meet with White House economic adviser Larry Kudlow in what was described as a previously scheduled meeting, according to a White House official who spoke on condition of anonymity because the official is not authorized to discuss the meeting publicly.

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GM's stock price surged on the heels of the announcement, closing at 37.65, up almost 5 percent on the day. It will integrate its vehicle and engine engineering teams, and it will bring more employees together, trimming the number of campuses for auto developers.

At the time, GM was reviewing whether to cancel at least six passenger cars in the USA market after 2020, including the Chevrolet Volt hybrid, Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, according to sources familiar with the review.

"If GM Canada is indeed turning its back on 100 years of industry and community ― abandoning workers and families in Oshawa ― then this is a callous decision that must be fought", she told the network.

The Detroit-based automaker said it would end production by the end of 2019 at its Lordstown Assembly plant in northeast OH; its Detroit-Hamtramck Assembly plant in southeast MI; its Oshawa Assembly plant in Ontario; its Baltimore Operations parts plant; and its Warren Transmission Operations plant in southeast MI. Lordstown Assembly builds the Chevrolet Cruze. Trump says GM needs to "get a vehicle that is selling well and put it back" into the OH plant.

Two other plants outside North America - as yet unnamed - are also due to close, in addition to the pre-announced shuttering of the firm's plant in the South Korean city of Gunsan.

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