The world is moving in the direction of the electric car, there’s just no way around that. General Motors (GM) has begun to embrace the eventual shift, and has announced that they will be stopping production on six of its worst-selling models – resulting in the closure of five factories.
These closures will result in as many as 14,000 lost jobs on top of the cancelled GM models.
The Detroit-Hamtramck factory – which is iconic but has been at the center of intense controversy – is scheduled to close, along with five others. Assembly plants in Warren, Ohio and Oshawa, Ontario will be closed, a plant in Baltimore that produces transmissions will get the axe, and the Transmission Operations site in Michigan will be closing as well.
Though much of the workforce at these sites will likely be facing unemployment, negotiations are underway to find relocation options for as many people as possible.
A statement from GM reads:
“The company is transforming its global workforce to ensure it has the right skill sets for today and the future, while driving efficiencies through the utilization of best-in-class tools.
“Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making.”
Here are the six vehicles being dropped from GMs range due to poor and worsening sales:
- Chevrolet Impala
- Cadillac XTS
- Buick LaCrosse
- Chevrolet Volt
- Cadillac CT6
- Chevrolet Cruze
Notice that all of the above models are traditionally-configured sedans or hatchbacks – highlighting a shift in consumer interest.
The shift towards electric cars is certainly an indicator of a bright future for the auto industry and the world in general, but it will not be without its growing pains and casualties along the way.