Event Insight
General Motor’s Restructuring – Why Do it and Why Now?
General Motors announced a significant restructuring on November 26th 2018, including a 15% reduction in their salaried workforce, the shuttering of the Lordstown and Detroit-Hamtramck assembly plants in the US and the Oshawa assembly complex in Canada in 2019. In addition, the Baltimore Operations and Warren Transmission plants will also be shut down in 2019.
So in a current environment with an economy that is likely to grow near the 3% level, a US auto industry holding steading above the 17 million unit level and GM earning nearly $6 billion through the first 3 quarters of 2018, many are asking, why would GM make cuts of this magnitude now?