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“This industry is changing very rapidly,” Barra said during a press briefing. “These are things we are doing to strengthen our core business.”. GM shares rose as much as 7.8 percent following the announcement, and were nearly 6 percent higher at $37.97 in mid-afternoon trading rhinestone cufflinks uk sale. Shares of Detroit rivals Ford Motor Co and Fiat Chrysler Automobiles NV also rose, outpacing the broader market. GM plans to halt production next year at three assembly plants: the Lordstown small-car factory near Youngstown, Ohio; the Detroit-Hamtramck complex in Detroit; and the Oshawa, Ontario, assembly complex near Toronto. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse. The Cruze compact car will be discontinued in the U.S. market in 2019, although GM may continue building it in Mexico for other markets, Barra said..
Plants in Baltimore, Maryland, and the suburban Detroit community of Warren, Michigan, both of which make powertrain components, have no products assigned to them after 2019 and are at risk of closure, GM said. The company said it will also close two unidentified factories outside North America rhinestone cufflinks uk sale. “We are right-sizing capacity for the realities of the marketplace,” Barra said. GM is also moving to cut capital spending overall, even as it says it will double the resources dedicated to electric and self-driving vehicles over the next two years..
GM last year promised to launch a fleet of 20 new battery electric vehicles in North America by 2023, along with at least 10 new electric vehicles in China by 2020. The expenditures to bring those vehicles to production will start to hit with new batteries and body architectures designed to generate profits. GM also is ramping up hiring at its GM Cruise autonomous vehicle unit, pushing to overcome technical challenges and make good on a plan to launch a robo-taxi service next year. 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 rhinestone cufflinks uk sale. The automaker has come under pressure from investors to return more cash in the form of share buybacks and dividends..
Cost pressures on GM and other automakers and suppliers have increased as demand has waned for traditional sedans. The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion. Barra did not link Monday’s cuts to tariff pressures, but said trade costs are among the “headwinds” GM faces as it deals with broader technology change and market shifts. GM’s actions provoked anger from political figures on both sides of the U.S.-Canada border, and from its main North American unions rhinestone cufflinks uk sale.
The United Auto Workers, which represents U.S. workers, vowed to fight the cuts. “General Motors’ decision today .. will not go unchallenged by the UAW,” said Terry Dittes, the union’s vice president in charge of negotiations with GM. Some UAW workers could land jobs at other GM factories, but many will face uncertain futures unless GM reverses course. Canadian Prime Minister Justin Trudeau said he spoke with Barra and expressed “deep disappointment.”. In the United States, Trump’s economic adviser, Larry Kudlow, was scheduled to meet with Barra on Monday rhinestone cufflinks uk sale.