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General Motors will cut staff and close several plants

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General Motors will cut staff and close several plants
November 29
13:00 2018

An auto giant General Motors is going to cut about 15% of its employees and a quarter of the management team. These changes apply only to the United States. Thus, about ten thousand workers will be dismissed.

By the end of next year, it is also planned to close 4 plants located in America and Canada. The factories in Detroit, Ohio, Oshawa and Baltimore will be closed too. Closing in other countries is possible.

All these measures will allow writing off about $ 4 billion of assets, which will be reflected in the reports for the current and future periods.

General Motors hopes to receive about 6 billion US dollars of free assets by the year 2020. Most of this amount (4.5 billion) is due to a decrease in current costs. Such an increase will provide an opportunity to increase investments in self-driving cars and electric cars.

GM shares have grown by almost 6% to their highest levels since July. During this year, the value of the company has fallen by 7.3% and now amounts to 50.7 billion dollars.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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