Anyone paying attention to the automotive industry lately would have noticed the slow death of sedans. Ford was the first to announce it was killing off all sedan models except for the Mustang, starting with the end of all national advertising.
For a few years now, we've heard rumors that General Motors would be taking a similar route and now those rumors have panned. GM has today announced an aggressive cost-saving plan which includes the shut down three assembly plants and the death of six sedan models.
The three plants being shut down are Detroit-Hamtramck in Michigan, Lordstown in Ohio, and Oshawa in Ontario. These shutdowns will include a layoff of around 15% of the company's total salaried staff in an effort to save $6 billion in cash flow by 2020.
6,200 jobs are reportedly at stake including around 1,500 in Hamtramck, 1,600 in Lordstown, and 2,500 in Oshawa. GM made the move "in response to market-related volume declines in cars."
The Detroit plant is responsible for building the Chevrolet Volt and Impala, Buick LaCrosse, and Cadillac CT6, the Ohio plant builds the Chevy Cruze, and the Ontario plant builds the Cadillac XTS and Chevrolet Impala.
This is huge news, especially considering the recent reveal of the sporty CT6-V earlier this year. We aren't sure how the CT6-V will be impacted moving forward with the CT6 production set to end on June 1, 2019. Each of these six models will all end production in 2019 at different intervals based on when each plant is set to go idle.
"GM is continuing to take proactive steps to improve overall business performance, including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce," the company said in a news release Monday.
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