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Released November 27, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--General Motors (NYSE:GM) (GM) (Detroit, Michigan) is ending production at five facilities in the U.S. and Canada, and reducing its salaried workforce by 15%, in what the company says is a grand effort to adapt to--and influence--the rapidly changing automotive industry. Industrial Info is tracking nearly $6.7 billion in active General Motors projects worldwide, including nearly $5.6 billion in the U.S. and Canada.
Click on the image at right for a graph detailing GM's active U.S. and Canadian projects, by state or province.
"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 Mary Barra, the chief executive officer of GM, in a press release. "We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success." The company expects to see cost reductions of $4.5 billion and a lower capital-expenditure annual run rate of almost $1.5 billion by the end of 2020.
Five GM facilities are set to be "unallocated" in 2019:
GM also said it would cease operations at "two additional plants outside North America by the end of 2019," but did not specify which ones. The company had previously announced it would close its assembly plant in Gunsan, South Korea.
These closures, along with a related 15% reduction in its global workforce, will give GM room to expand and enhance capacity at plants that are developing vehicles the company expects will dominate the automotive market in coming years. GM says it will double its resource allocation to electric and autonomous (or "self-driving") vehicle programs over the next two years, following its shift of capital and resources to crossovers, sports utility vehicles (SUVs) and trucks in the past four years.
The company summed up its new vision with a motto: "Zero Crashes, Zero Emissions, Zero Congestion."
GM is at work on several capital projects in the U.S. to develop SUVs and trucks, including its $1.4 billion expansion of an assembly plant in Arlington, Texas, and $296 million in equipment additions at the Tonawanda Engine Plant in Buffalo, New York. The Arlington expansion would increase SUV production by adding 1.2 million square feet, for a total of about 5.6 million square feet, while the Tonawanda project will see another assembly line to produce engines for GM's 2019 Silverado Trucks, as well as SUVs and other cars. For more information, see Industrial Info's reports on the Arlington and Tonawanda projects.
The nascent market for self-driving vehicles is another area of focus for GM, which is weighing its options for a proposed, estimated $40 million expansion at its battery-assembly plant in Brownstown, Michigan. The new space and equipment would enable greater production of lithium-ion batteries and roof-mounted control modules for autonomous Cruise cars. For more information, see Industrial Info's project report.
GM purchased Cruise, a company that specializes in self-driving cars, partly to compete with companies like Uber (San Francisco, California) and Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California), but also to prepare for new players that are not traditionally part of the automotive market: Google's parent company, Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California), and Apple Incorporated (NASDAQ:AAPL) (Cupertino, California), both of which are wading into the self-driving movement, according to CNN.
The fresh focus on SUVs, trucks, electric and self-driving automobiles also can be seen abroad. At the company's assembly plant in Alvear, Argentina, subsidiary General Motors de Argentina SRL is considering two proposed expansions: an estimated $150 million in additions to the sport utility pickup line and an estimated $50 million in additions to the e-vehicle line. The latter project would introduce more Chevrolet Bolt EV models to the South American market. For more information, see Industrial Info's reports on the sport utility pickup and e-vehicle projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing GM's active U.S. and Canadian projects, by state or province."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 Mary Barra, the chief executive officer of GM, in a press release. "We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success." The company expects to see cost reductions of $4.5 billion and a lower capital-expenditure annual run rate of almost $1.5 billion by the end of 2020.
Five GM facilities are set to be "unallocated" in 2019:
- Oshawa Assembly Plant in Oshawa, Ontario; see plant profile
- Detroit-Hamtramck Assembly Plant in Detroit; see plant profile
- Lordstown Assembly Plant in Warren, Ohio; see plant profile
- Baltimore Operations Plant in White Marsh, Maryland; see plant profile
- Warren Transmission Operations Plant in Warren, Michigan; see plant profile
GM also said it would cease operations at "two additional plants outside North America by the end of 2019," but did not specify which ones. The company had previously announced it would close its assembly plant in Gunsan, South Korea.
These closures, along with a related 15% reduction in its global workforce, will give GM room to expand and enhance capacity at plants that are developing vehicles the company expects will dominate the automotive market in coming years. GM says it will double its resource allocation to electric and autonomous (or "self-driving") vehicle programs over the next two years, following its shift of capital and resources to crossovers, sports utility vehicles (SUVs) and trucks in the past four years.
The company summed up its new vision with a motto: "Zero Crashes, Zero Emissions, Zero Congestion."
GM is at work on several capital projects in the U.S. to develop SUVs and trucks, including its $1.4 billion expansion of an assembly plant in Arlington, Texas, and $296 million in equipment additions at the Tonawanda Engine Plant in Buffalo, New York. The Arlington expansion would increase SUV production by adding 1.2 million square feet, for a total of about 5.6 million square feet, while the Tonawanda project will see another assembly line to produce engines for GM's 2019 Silverado Trucks, as well as SUVs and other cars. For more information, see Industrial Info's reports on the Arlington and Tonawanda projects.
The nascent market for self-driving vehicles is another area of focus for GM, which is weighing its options for a proposed, estimated $40 million expansion at its battery-assembly plant in Brownstown, Michigan. The new space and equipment would enable greater production of lithium-ion batteries and roof-mounted control modules for autonomous Cruise cars. For more information, see Industrial Info's project report.
GM purchased Cruise, a company that specializes in self-driving cars, partly to compete with companies like Uber (San Francisco, California) and Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California), but also to prepare for new players that are not traditionally part of the automotive market: Google's parent company, Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California), and Apple Incorporated (NASDAQ:AAPL) (Cupertino, California), both of which are wading into the self-driving movement, according to CNN.
The fresh focus on SUVs, trucks, electric and self-driving automobiles also can be seen abroad. At the company's assembly plant in Alvear, Argentina, subsidiary General Motors de Argentina SRL is considering two proposed expansions: an estimated $150 million in additions to the sport utility pickup line and an estimated $50 million in additions to the e-vehicle line. The latter project would introduce more Chevrolet Bolt EV models to the South American market. For more information, see Industrial Info's reports on the sport utility pickup and e-vehicle projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
