GM to close factories in Michigan, Ohio, Canada

General Motors Canada Headquarters Oshawa Ontario

GM to close factories in Michigan, Ohio, Canada

But sales are starting to slip in China and North America, two of GM's biggest and most important markets.

General Motors announced Monday that Lordstown, along with several other plants of operation, will remain "unallocated" meaning they won't receive any new product. The plants made sedans that have waned in popularity, including the Chevrolet Volt, Impala and Cruze, the Buick LaCrosse, and the Cadillac CT6 and XTS. The Cruze compact auto will be discontinued in the USA market in 2019.

GM confirmed Monday it would close its Oshawa plant in 2019, throwing about 3,000 unionized people out of work.

Scheer says the closure is devastating to thousands of families in southern Ontario and the government needs to immediately explain how it will help them and protect other manufacturing jobs in Ontario.

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future", said CEO Mary Barra, in a statement.

GM's (GM) new motto is "Zero Crashes, Zero Emissions, Zero Congestion", signaling a shift to self-driving, electric vehicles.

Premier Doug Ford, who recently unveiled an "Ontario - Open For Business" sign along the USA border at Sarnia, said the GM announcement is "devastating" for GM workers and auto parts suppliers.

Unifor has also issued a statement calling on GM to find a new product to allocate in Oshawa.

Canadian Prime Minister Justin Trudeau said he spoke to Barra on Sunday to express his "deep disappointment" with the closure.

He said his wife also works at the GM facility and the pair have an 11-month-old at home.

Its North American salaried workforce, including engineers and executives, will shrink by 15 percent, or about 8,000 jobs. Executive ranks will also be whittled down by 25 percent to streamline decision making.

At the factories, around 3,300 blue-collar workers could lose jobs in Canada and another 2,600 in the US, but some USA workers could transfer to truck or SUV factories that are increasing production. The stock is still down about 7 percent this year.

But the next automaking leader may not be GM or one of its traditional rivals.

The auto giant is reportedly preparing for the next economic downturn, shifting trade agreements under the Trump administration, and potential tariffs on automobiles.

GM stock was up about 5.9%, to $38.04 per share, in Monday morning trading. The affected plants are Detroit-Hamtramck and Warren Transmission in Michigan, Lordstown Assembly in Ohio, Oshawa Assembly in Ontario, Canada, and Baltimore Operations in Maryland.

A rule of thumb for the automotive industry is that if a plant is running below 80 percent of production capacity, it is losing money. GM had been expected to close plants because of struggling sales.

"I don't know how I'm going to feed my family", he said outside of the plant's south gate, where workers instituted a blockade for trucks from the entrance.

Rivals Ford Motor Co and Fiat Chrysler Automobiles NV have both curtailed USA auto production. We have always been the best plant in North America.

The restructuring reflects the changing US and North American auto markets as a dramatic shift away from cars toward SUVs and trucks continues. Sales of the compact vehicle were down 27 percent through September, GM said.

While industry-wide passenger vehicle sales were down 13.2 percent through the first nine months of the year, pick-up truck and SUV sales rose 8.3 percent.

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