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GM Announces Restructuring, Idling of Several Assembly Plants

GM Announces Restructuring, Idling of Several Assembly Plants

General Motors has announced a massive restructuring plan to accelerate its transformation, according to the automaker. The announcement includes the idling of several assembly plants in North America along with other structural changes.

Through a realignment of the company’s manufacturing capacity and reduction of salaried workforce, GM says it will increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis. The automaker will reduce its salaried workforce by about 15 percent, including a reduction of its executive workforce by 25 percent to streamline decision making.

Along with a reduction in workforce, GM will be idling assembly plants in Oshawa, Ontario, Lordstown, Ohio and Detroit-Hamtramck. The three plants will continue to operate until their current products reach the end of their lifecycle in 2019, at that point all three plants will no longer have any products allocated to them.

GM is also shifting a propulsion assembly plant in White Marsh, Maryland and a transmission plant in Warren, Michigan to unallocated in 2019. Two assembly plants outside of North America will also be closed next year, but the automaker did not name them in the announcement.

“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.”

The company says it is also taking steps to optimize its product portfolio, but has stopped short of saying which products the company will be cutting from its product portfolio. It’s worth mentioning that the three assembly plants being idled produce the Buick LaCrosse, Cadillac XTS, Cadillac CT6, Chevrolet Impala, Chevrolet Cruze and Chevrolet Volt. The obvious correlation is that each plant produces sedans, which are seeing dramatic sales declines across the industry.



About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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