GM Defends Plan to Cut Production in N. America

General Motors Co., facing fierce criticism for yesterday’s decision to close five factories in North America, says it remains committed to maintaining a “strong manufacturing presence” in the U.S.

Virtually all the employees affected by the impending closures are associated with underutilized plants that have been making slow-selling sedans. GM says many of those workers may be able to move to other facilities in the region that are making far more popular pickup trucks and SUV/crossover vehicles.

The company also points out that its shift to electrified powertrains and autonomous vehicles is creating high demand for new technical and engineering workers.

GM’s announcement on Nov. 26 has prompted a firestorm of protest from union workers and politicians whose constituents will be affected. The plan also drew a sharp response from President Donald Trump, who had promised auto workers on the campaign trail two years ago that “you won’t lose one plant” if he was elected.

Trump says he reminded CEO Mary Barra about the federal bailout that enabled GM to emerge from bankruptcy nine years ago, adding that “this country has done a lot for General Motors.” He urged her to find other models for the targeted factories to produce.