The eminent name in the automotive industry, General Motors would stop their Chevrolet Cruz production that was going on at the Ohio manufacturing plant in the area of Lordstown. The firm has its intention to keep the production of its goods only until Friday. A spokesperson of the General Motors claimed that the firm is “ahead of the production schedule.” After Wednesday, none of the vehicles would be assembled in the assembly plant of Ohio, which is nearly 6 million square feet in size.
General Motors claimed that they would be closing down 5 plants in the North American area. This announcement was made around 5 months back, in November 2018; this was followed by around 15 percent decrease in the salaries of the salaried labor force. The company would also have to lay off around 8 thousand workers that were previously hired on a salary basis, along with 6 thousand workers that are paid on an hourly basis. All these people would be going to lose their jobs if they are not assigned to any other plants. The workers that are assigned to new locations would be provided diverse opportunities in the Texas, Michigan, Ohio, Tennessee, Kentucky, or the area of Indiana.
As the reports of CNN suggested, General Motors declared that they will be bringing reforms in order to save 6 Billion US Dollars of the firm by the 2020’s end.
The firm has been sued by the UAW union after they announced this. The United Auto Workers Union announced that the closing would be an evident breach of the 2015 labor agreement which clearly “prohibits the Company from closing or shutting down any plant during the term of the Collective Bargaining Agreement.” General Motors announced that it would be investing in Romulus plant and Lansing Delta Township plant situated in Michigan. The firm would spend as much as 20 Million US dollars for increasing production at their Romulus plant, making the total investment for this particular plant to lie around 880 Million US Dollars since the year 2009.