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GM to cut production at 5 plants in North America, kill several models

DETROIT/WASHINGTON — General Motors Co said on Monday it will cut production of slow-selling models and slash its North American workforce in the face of a stagnant market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles. The announcement is the biggest restructuring in North America for the U.S. No. 1 carmaker since its bankruptcy a decade ago. GM said it will take pre-tax charges of $3 billion to $3.8 billion to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6 billion by the end of 2020. GM plans to halt production next year at three assembly plants: Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said. Sources said the Chevrolet Volt, Impala and Cadillac XTS would also be discontinued. Signs of the demise of six passenger-car models have been swirling since July. Plants in Baltimore, Maryland, and Warren, Michigan, that assemble powertrain components have no products assigned to them after 2019 and thus are at risk of closure, the company said. It will also close two factories outside North America, but did not identify those plants. The AP reported that 14,700 jobs would be affected. Some 8,100 of those would be white-collar jobs reduced through buyouts or layoffs. The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America. The company also said it will cut executive ranks by 25 per cent to "streamline decision making." Some 6,000 factory workers could lose their jobs or be transferred to other plants. Its shares were last up 6.2 percent at $38.16. Tariff 'headwinds' and cost-cutting GM Chief Executive Officer Mary Barra told reporters on Monday the company can reduce annual capital spending by $1.5 billion and increase investment in electric and autonomous vehicles and connected vehicle technology because it has largely completed investing in new generations of trucks and sport utility vehicles. Some 75 percent of its global sales will come from just five vehicle architectures by early in the 2020s. It plans to reduce annual capital spending to $7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period.

GM plans to restart production in Mexico on May 20

MEXICO CITY — General Motors is tentatively planning to restart operations at its auto assembly plant in the Mexican city of Silao on May 20, according to a message to workers seen by Reuters on Sunday, as the car industry prepares to exit the coronavirus lockdown. Separately, the president of GM's Mexican unit advised suppliers to prepare to resume operations. “We are now beginning a new phase given the Mexican governmentÂ’s official announcement earlier this week to consider the transportation manufacturing industry as essential for the countryÂ’s economy,” Francisco Garza, president ofGeneral Motors de Mexico, wrote in an email to suppliers dated on Friday that was viewed by Reuters. The reopening of the plant  in Silao would be a positive signal for the auto sector in North America, whose supply lines are highly interconnected between the United States, Mexico and Canada. The plant in the central state of Guanajuato has been idled for weeks due to the coronavirus outbreak. Workers had previously been told to plan to return to their jobs on May 18. A GM spokeswoman said the company could not confirm when it would restart operations at any of its facilities in Mexico because it is awaiting more guidance from the government. The message to the plant's workers came after the government on Friday clarified when the industry could begin easing restrictions imposed because of the health emergency. On Wednesday, the government said automakers could start going back into production from May 18. It then withdrew that advice and suggested the new start date would be June 1. Finally it indicated the sector, which forms the backbone of Mexican manufacturing, could begin operating as soon as next week if companies had the required safety measures in place. U.S. officials and its auto industry have pressed Mexico's government to get its factories open again because American operations depend heavily on parts from south of the border. However, some politicians are wary of opening too fast. Mexico registered its first case of coronavirus weeks after the United States and Canada and the toll of daily infections and deaths in the country reached new peaks over the past few days. The Silao production facility, which makes highly profitable pickup trucks for GM, is one of the biggest automotive plants in Guanajuato, a major Mexican carmaking state. Related Video:

Opel CEO talks new EV, will likely be fresh face for Chevy, too

The rumored demise of the Opel Ampera has been confirmed, but there's good news, too. Opel CEO Karl-Thomas Neumann has been busy Tweeting information about the brand's next plug-in vehicle, admitting that the Ampera is on the way out but that plug-in vehicles are here to stay. His Tweets, in full, read: After the eventual run-out of the current generation Ampera, we'll introduce a successor product in the electric vehicle segment. Our next electric vehicle will be part of our massive product offensive – with 27 new vehicles in the 2014-2018 time frame. We see eMobility as important part of the mobility of tomorrow and we will continue to drive down costs & deliver affordability. As we learned earlier this week, the Ampera will not be refreshed when the current Chevy Volt is updated, most likely because of slow sales. Opel sold just 332 Amperas in the first five months of 2014. For now, General Motors is still building Amperas in Michigan for export to Europe. So, what might this new EV mean for the General Motors plug-in fleet? Official spokespeople are being quiet, but we think it's safe to say the new EV Neumann is talking about is not simply a rebadged Chevy Spark EV. This is the first official word about an entirely new EV, and we expect it will come to both the Chevrolet and Opel brands.