GM to close factories in Michigan, Ohio, Canada

The closures are expected to save the company around $6 billion by the end of 2020.

General Motors has announced plans to wind down operations at five North American factories, slashing costs in apparent preparation for a long-term downturn in the automotive industry.

The list of assembly plants that will be "unallocated" next year includes the Oshawa factory in Ontario, Detroit-Hamtramck in Michigan and Lordstown in Ohio. Two powertrain sites and three other plants outside North America will also be affected.

"These manufacturing actions are expected to significantly increase capacity utilization," the company said in a statement.

The closures will be accompanied by a broader restructuring, reducing GM's overall salaried and contract workforce by 15 percent. Executive ranks will also be whittled down by 25 percent to streamline decision making.

"These actions will increase the long-term profit and cash generation potential of the company and improve resilience through the cycle," says GM CEO Mary Barra.

Closing the factories, eliminating workers and discontinuing certain vehicles is expected to save approximately $6 billion.