In a move that will save the company $6 billion by the end of 2020, General Motorsannounced a restructuring Monday that includes chopping its workforce by 15% and shuttering five plants next year.
The country’s largest automaker also announced it would discontinue the production of some of its models, shifting away from slower-selling sedans in favor of cross-overs, pickup trucks and SUVs. The shift also will allow the company to focus on electric and autonomous vehicles.
The company is no stranger to reconstruction. In 2009, GM filed for bankruptcy and was bailed out by US and Canadian taxpayers.
Many of the models the company plans to discontinue were among the more than 200,000 US vehicles recalled a few months ago due to a soft, spongey brake pedals.
Americans will begin to see less of these vehicles next year, as production for each of these vehicles will take place throughout the year.
Chevrolet Volt
Hitting the US market in late 2010, the Chevy Volt is a plug-in hybrid that was one of the first mainstream cars of its type. The vehicle operates first on battery power and when the charge gets low enough, a gas engine kicks in. Over the years, however, sales languished and the company came out with a second generation Volt in 2014, adding a more powerful battery that can go further on a charge and improving acceleration, and resulting in a boost in sales. The company sold its 100,000th Volt in August 2016.
Chevrolet Cruze
Chevrolet’s Cruze is a compact sedan that has been in production since 2008. In its first few years, the car rivaled other mainstays in the field, including the Honda Civic. By 2015, it was Chevrolet’s best-selling car, selling 3.5 million in its seven-year existence. In that same year, the company announced a newer generation of the car, sending a press release out about the vehicle made entirely of emojis.
Chevrolet Impala
The large sedan Impala was first launched by Chevrolet in the 1950s, with its sales peaking in the 60s and gradual sales decline over the next few decades. The 2014 model was well received, becoming the first US-made sedan to top the Consumer Report ratings in 20 years.
Cadillac CT6
Announced in 2015 as its flagship sedan, the Cadillac CT6 is a lightweight, rear-wheel-drive luxury car and just earlier this year added a newer model, the CT6-V. The vehicle will be still be offered as expected 2019 and the vehicles will be sold until they run out, GM spokespeople told auto publication The Drive.
Cadillac XTS
Cadillac introduced the XTS, a full-size four-door sedan, in 2012, though recent sales have dwindled alongside falling sales of sedans.
Buick LaCrosse
First launching in 2004, the Buick LaCrosse is the brand’s larger-sized sedan. In 2010, the model was completely redesigned and doubled in sales, appealing to recession customers that would have otherwise gone to higher-end brands such as Lexus and Audi.
