GM CEO: Closure of Plants Was Necessary
January 11, 2019 9:37AM EST
(ONN) – General Motors, which is soon ending production at its sprawling assembly plant in Lordstown, strengthened its pre-tax profit estimate for 2018 and predicted even stronger performance for this year as its executives made a presentation to investors.
Last year GM announced plans to close the Lordstown plant and four others in North America and lay off 14,000 salaried and blue-collar workers.
CEO Mary Barra says the closure of the plants was necessary to keep up with changes in demand, and the company doesn’t foresee any further job cuts through 2020.
The rosy profit forecast comes despite declining sales for the company in the U.S. and slowing sales in China.
G.M. plans to discontinue several car lines in the U.S. in the coming year.
