MICHIGAN: General Motors announced that it will be cutting production of traditional gas-powered sedans and shifting their focus on electric and autonomous vehicles. They will also be cutting around 14,800 jobs across U.S. and Canada.
Today we announced new actions to accelerate our transformation to help create a #ZeroCrashes, #ZeroEmissions and #ZeroCongestion world. That means making hard decisions now to stay ahead of changing market conditions, positioning us to lead the future. https://t.co/nzTLlqTPjC
— General Motors (@GM) November 26, 2018
This decision will mark a turning point in the North American Auto Industry.
President Donald Trump is not very happy with the decision. He made it clear to the chief executive of General Motors, Mary T. Barra, “I spoke to her and I stressed the fact that I am not happy with what she did.”
GM also plans to idle its factories by next year in Detroit; Oshawa, Ontario; Warren, Ohio; White Marsh, Maryland; and Warren, Michigan. As a result, it will have to cut around 3,300 production workers in U.S. and 2,500 production workers in Canada respectively. It also plans on trimming around 8,000 salaried staff which contributes to about 10% work force in North America. This resulted in the shares of GM going up by 4.8% to their highest closing price in last three months.
General Motors is also planning to stop production of the following cars:-
As a result, President Donald Trump has asked the General Motors to stop manufacturing cars in China, according to media report.