Motor Trade Insurance

General Motors To Close Number Of Plants In USA

November 29, 2018 by Logan Biggs

It has recently been announced by the American vehicle manufacturing giant General Motors (GM) that it is to close a number of its plants in the USA and one in Canada resulting in the loss of in excess of 14,000 jobs. This news has not gone down well with Donald Trump the President of the United States of America.

As a result, it is being forecast that by the end of 2020 the company will save in the region of $6 billion. That is a huge sum of money. The reason for the shut downs is due to car sales slowing down as well as rising costs. The company intends to invest more in autonomous and electric vehicles.

The company is stopping production of a number of vehicles such as the Chevrolet Impala, Cadillac CT6 and the Buick LaCross.

It will be interesting to see if any UK car manufacturers feel the need to cut costs by shutting plants and/or making some employees redundant. Here in the UK, as mentioned in other news articles, there has been a fall in the number of new cars sold in recent months. Let us hope that this situation soon turns around and the motor trade industry is able to provide some good news that it has been somewhat lacking in over the last few months.

The motor trade industry here in the UK covers so many different types of businesses that are potentially affected by any drop in new car sales. For instance, the services of car valeters are sometimes used to ensure new vehicles are kept in pristine condition prior to sale. New cars need servicing periodically so mechanics are in popular demand both at dealerships and many also run their own business. Unfortunately, some cars are involved in road traffic accidents and suffer damage so car body repair shops provide a service to repair such vehicles. Cars need new parts so car parts businesses provide such things to the likes of garages.

We will continue to keep our readers such as motor traders up to date with any significant developments should any car manufacturers in the UK decide to follow the way of General Motors.

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