GM plans to shift investments towards building electric vehicles

Company will cut production of slow-selling models and slash its North American workforce by 40,000;—3,000 of which are Canadian workers

General Motors (GM), the largest US carmaker, has said it will cut production of slow-selling models and cut its North American workforce because of a declining market for traditional gas-powered sedans.

Almost 3,000 Canadian workers are expected to lose their jobs as the company plans to slash 15 percent of its salaried workforce in North America — up to 14,800 jobs in total.

The auto giant says it is scrapping production of fossil fuel consuming vehicles and will be shifting more investments towards electric and autonomous vehicles as part of a “$3.8 billion restructuring effort aimed at refocusing efforts on building zero-emission vehicles.”

Production at plants in Ontario as well as Michigan, Ohio, and Maryland will be terminated in 2019. The brands affected will include the Buick LaCrosse, Chevrolet Impala and Cadillac CT6 sedans.

Reuters adds: “GM last year promised to launch a fleet of 20 new battery electric vehicles in North America by 2023, along with at least 10 new electric vehicles in China by 2020.”

Meanwhile, Bloomberg notes that Shell has said that “demand for electric cars will continue to surge irrespective of oil prices as consumers buy into a technology aimed at making driving fun while being environmentally friendly”.

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