MID-DAY: GM announces plans to close five plants, company shares boost; Air Canada inks final deal with Aimia for Aeroplan
GM is in the spotlight today as the company announced plans to cut five plants across North America. Four plants are in the US and one is in Ontario with thousands of layoffs by 2019. The restructuring plan is meant to save the company $6 billion by 2020. Following the announcement GM stock has pushed 7 percent to 38.67.
A boost in oil prices as well as renewed optimism on retail is helping push North American markets ahead. The TSX is up 48 points to 15, 059 and across the border the Dow is gaining 357 points to 24,643. The price of crude has pulled back from a Black Friday slide, as US oil gains to 51.88 a barrel.
Air Canada is solidifying its ownership of Aeroplan, by offering Aimia $450 million. The company is also taking on over a billion dollars in liability. Visa, TD and CIBC will all pay Air Canada to continue offering the combined credit card Aeroplan options. Amex is reportedly also in talks with Air Canada to continue offering its Aeroplan credit card.