GM will halt production at five of its assembly plants in response to slowing car sales.

GM will halt production at five of its assembly plants in response to slowing car sales.

Photo via Crisco 1492/Wikimedia.

General Motors will cease production at five of its assembly plants, including three that produce passenger cars it plans to discontinue amid the shift in consumer preference for trucks and utility vehicles, the company announced.

The car factories include one in Lordstown, Ohio, that makes the Chevrolet Cruze compact car; the Detroit-Hamtramck plant that produces the Chevrolet Volt, Buick LaCrosse, and Cadillac CT6; and a plant in Oshawa, Ontario, that makes the Chevrolet Impala. GM is also halting operations at transmission plants in Baltimore and Warren, Mich.

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," said Mary Barra, chairman and CEO. "We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success."

With the move, GM is expected to cut more than 14,000 jobs, including a 15% reduction to salaried and salaried contract staff.

Outside of North America, GM also plans to close its South Korea assembly plant in Gunsan, along with two additional plants, by the end of 2019.

The moves will generate cash savings of about $6 billion and cost reductions of $4.5 billion, as well as a lower capital expenditure annual run rate of almost $1.5 billion.

GM has previously announced that it will streamline its car lineup, by discontinuing three Chevrolet cars including the Impala and Sonic, along with several Cadillac cars, including the ATS. With the current announcement, GM appears to be taking a more aggressive approach to streamlining its car lineup.

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