While struggling to avoid entering the dark tunnel, the company announced General Motors today that it would stop car production Chevy Volt hybrid on the first day of the month of March next year. This is part of a wider plan by the company specialized in the car industry to cut production in North America. And General Motors is currently laying off thousands of workers because they decided to close three of its plants.
Part of the plan of General Motors is to cease production of a few cars that are not selling well. For this reason, the company will close its plants in Oshawa, Ontario, Detroit, Michigan, Warren, Ohio. And still the future of these factories is unknown. The company added that it will consider 3 to 3.8 billion USD in these changes so the company can generate about $ 6 billion of cash flow by the year 2020.
How General Motors Company will also discharge executive staff with high salaries and staff contracts by 15 percent. This will decrease the number of executives by 25 percent to simplify the decision-making process. According to the agency The Associated Press that this change will lead to the loss of an estimated 14 thousand employees their jobs.
This is the restructuring the largest undertaken by the company General Motors in North America since its bankruptcy a decade ago. Investors seem to like the decisions that have been announced as picked up shares of the company increased by 7.6% shortly after the publication of the news.
The post GM to stop car production Chevy Volt, and cover three of their interests in North America appeared first on electronic.