Business

GM’s Decision Of Closing Its Plant Is Severely Going To Affect Auto Parts Suppliers

Currently, the auto industry is going through one of it’s toughest phases of all time because many big companies are restructuring their business model due to which they’re doing a mass layoff. Recently General Motors shocked the nation when the company declared that it’s going close down all of its major five plants in the USA. Because of that decision, thousands of employees are on the verge of losing their jobs, however, if there’s someone who is more worried because of this news then its auto parts suppliers. According to the current situation, the majority of auto parts suppliers of General Motors are going to lose their jobs because of plants shut down. Many experts believed that all blue collar workers of GM should not be worried since they’re going to get their jobs back at newly located factories. But the same thing does not go for those who provide auto parts or operates a company’s operations.

Some Union leaders are saying that all those workers whose jobs are replaceable by machinery will no longer be GMs employees. The company has signed an agreement in which it has given its workers’ transfer rights, and relocation money but not all employees get such type of powers. Some plants which supply seats and other necessary items to big companies like General Motors are closing their operations since their contracts have ended. Thousands of workers work at such type of small scale factories and it seems like many of them will have to find some new ways of earning money. Some economists predicted that many assistant jobs which are connected to auto industries are going to get hit because of general motors decision.

President Trump has already shown his rage over GM’s decision of closing its plants down. Now it will be interesting to see how GM is going to react if trump puts some restriction on a company’s operations.

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Juanita Hopkins

Juanita previously worked in a marketing company. But after revealing her interest in journalism and reporting She decided to become a contributor. Thus, writing business-related news is Juanita's cup of tea. Additionally, She has an in-depth knowledge of the sector. she primarily focuses on energy, finance, the world economy.

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