On Monday, an announcement was made by the General Motors that in 2019 the company will stop manufacturing vehicles at its three factories in North America.
According to the General Motors, the three factories which will be de-allocated include the Oshawa Assembly which is located in Oshawa Ontario, Canada along with the Detroit-Assembly located Detroit and the Lordstown Assembly of the Warren all of which are located in Ohio.
The de-allocation will take place by the end of 2019. This is a part of reorganization the manufacturing capacity of the company in order to be able to focus on the electric as well as the self driving vehicles.
Along with this, it will also prepare the company for the downturn in the market of automobiles and on the weakening of the economy of the United States.
Each of these factories is either entirely or at the max mostly involved in the production of the passenger cars.
These passenger cars have witnessed a decline in the demand by the consumers because of the shift by the customers to the pickup trucks as well as crossover SUVs.
The Assembly of Lordstown which is located in Warren particularly builds slow selling, single sedan the once popular Chevy Cruze. It has been operating on a single shift.
The CEO of the company, Mary Barra, told the reporters on a conference call that this entire activity of idling the plant will ensure that the company retains its agility, and continue to be resilient as well as profitable.
She further added that the company which is the largest automaker in the United States is taking these steps while both the company as well as the economy are strong so that the company can stay ahead in the fast changing conditions of the market as well as the industry.
Source: BusinessInsider, CTPost