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Recently, foreign media reported that due to the adjustment of production targets, GM announced that it would temporarily suspend production at its Ingersoll assembly plant in Ontario, Canada, until September 30, with temporary layoffs later; for the San Luis Potosi assembly plant in Mexico, GM will also choose to cut one round of production shifts.

It is understood that both factories are used to produce GM's best-selling Chevrolet explorer, but sales of the car fell sharply in Canada in the first half of this year. In the first half of the year, Chevrolet explorers sold just 9687 vehicles in Canada, down 17% from a year earlier. In response, GM said that in order to achieve the strategic goal of matching production and market demand, its company had to adjust its production targets and temporarily suspend production at the two plants.

So far, this is not the first time GM has closed its plant this year. As early as July 31, the United Automobile Union (UAW) revealed that GM will close its Warren transmission plant in Michigan. In November, GM announced that it would close seven factories in 2019, including five local factories in North America and two outside North America, in order to save costs and optimize expenses.

GM sold 814000 vehicles in China in the first quarter of 2019, down 17.4 per cent from a year earlier and 15.6 per cent from the previous quarter, according to GM's first-quarter results. Its operating income has also been affected by the sharp decline in sales in China. In the first quarter of this year, GM's revenue was just $34.88 billion, down 3.4% from a year earlier and 9.2% from a month earlier. Sales and revenue have both fallen, forcing GM to speed up its restructuring plan to improve cost-effectiveness.

In fact, not only GM, but also car companies such as Ford and Nissan are closing some factories. This is mainly due to the rising operating costs of car companies in order to optimize product mix and save money in order to optimize product mix and save money in an environment where the global car market is generally not as expected. Have to stop production and lay off workers. In the future, with the gradual implementation of the restructuring plan, GM's plant closures and layoffs will continue.

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