General Motors to cut 300 jobs in Mexico
- Source: Xinhua
- [10:26 July 11 2009]
- Comments
President of General Motors Mexico (GMM) Grace Liebleim announced on Friday that the company will in the coming days lay off 12 percent of the workers that do not belong to the union.
Around 300 of the 3,300 workers the GMM employs will lose their jobs, said GMM Director of Public and Governmental Relations Mauricio Kuri at a press conference.
In the United States, the company cut some 4,000 workers while in Canada, it cut 800.
Liebleim said that after being saved from the bankruptcy, the company redesigned its future plans, making them more profitable and competitive with long term viability.
In Mexico, the automotive sector has been one of the most affected by the global financial crisis.
In the May report of the Mexican Association of the Automotive Industry(AMIA), during the first month of the year, it registered a 30.6 percent drop in car sales in the country, down from 432,883 to 399,316.
While in car exports, the drop is even sharper, with a reduction of 41.5 percent for the same period, down from 683,070 to 399,755.
GMM Executive Director of Sales, Services and Marketing Ernesto Hernandez said that the restructuring of the company will also include 170 distributors.
From now on, General Motors will produce trademarks including Chevrolet, GMC, Cadillac and Buick. Pontiac will disappear from the Mexican market since 2010.