General Motors Co. (NYSE: GM) has announced what it calls "proactive steps to improve overall business performance." The auto manufacturer says it plans to close five facilities in 2019, including assembly plants in Ohio and Michigan, and reduce its workforce by 15 percent. GM says the move is part of a transformation for the future, which includes an increased focus on next generation battery-electric vehicles.
The company says the moves it is making are expected to create an annual cash savings of $6 billion by the end of 2020.
"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," Mary Barra, chairman and chief executive officer of GM, said in a news release. "We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success."
GM says assembly plants in Detroit, Warren, Ohio and Oshawa, Ontario, Canada will be shuttered in 2019, along with propulsion plants near Baltimore, Maryland and Warren, Michigan. Operations at two additional plants outside of North America will be ceased by the end of 2019 as well.
The company says the closures will "significantly increase capacity utilization."
GM has numerous facilities throughout Indiana, including in Fort Wayne, Kokomo, Marion, and Bedford. It is unknown if any Indiana employees will be affected by the workforce reduction.
Will discusses ripple effects that Indiana could feel as a result of the cuts.