26 November 2018•Update: 27 November 2018
By Umar Farooq
WASHINGTON
General Motors (GM) announced Monday it will halt production at five factories in Canada and the U.S. and cut its salaried work force by 15 percent in attempt to restructure the company and increase profits.
The American automaker said it will close its assembly plants in Lordstown, Ohio, Hamtramck, Michigan and Oshawa, Ontario by the end of 2019.
In addition GM will also close propulsion factories in White Marsh, Maryland and Warren, Michigan.
"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," GM CEO Mary Barra said in a statement.
The Canadian workers union, Unifor, announced Sunday it had been informed of the company's decision to stop allocating products to its factory in Ontario.
The decisions are a part of a massive restructuring process, in which the GM will allocate more resources towards electric and autonomous driving programs over the next two years.
The restructuring comes as many analysts say that sales of vehicles in the U.S. will decline in 2019.
The top U.S. car maker signaled the change in the company at the end of October where it offered buyouts to 18,000 of its 50,000 salaried workers.
The announcement boosted investors' confidence in GM shares with a six percent gain compared to Friday's closing price of $35.94.
