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GM to close plants in U.S., Canada, and Korea

Staff Writer |
GM is continuing to take proactive steps to improve overall business performance.

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These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

Contributing to the cash savings of approximately $6 billion are cost reductions of $4.5 billion and a lower capital expenditure annual run rate of almost $1.5 billion.

As the current vehicle portfolio is optimized, it is expected that more than 75 percent of GM’s global sales volume will come from five vehicle architectures by early next decade.

Assembly plants that will be unallocated in 2019 include:

Oshawa Assembly in Oshawa, Ontario, Canada.
Detroit-Hamtramck Assembly in Detroit.
Lordstown Assembly in Warren, Ohio.

Propulsion plants that will be unallocated in 2019 include:

Baltimore Operations in White Marsh, Maryland.
Warren Transmission Operations in Warren, Michigan.

In addition to the previously announced closure of the assembly plant in Gunsan, Korea, GM will cease the operations of two additional plants outside North America by the end of 2019.

Premier Doug Ford issued the following statement on the closure of the General Motors Oshawa Assembly Plant: "Today is a difficult day for the workers at the General Motors Oshawa Assembly Plant.

"It is a difficult day for the thousands of workers at hundreds of Ontario auto part suppliers that depend on the GM Oshawa Assembly Plant for much of their business, as well as for workers and small business owners throughout Oshawa and the wider Durham region.

"And it is also a difficult day for the spouses, the children and the families of these workers.

"Today a lot of people are feeling shocked and saddened. I know some people are also feeling angry and betrayed.

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