The workers will lose their jobs in January. GM will also invest $900 million in three plants for supporting new vehicles.
General Motors will cut a total of 2,084 workers in Michigan and Ohio in January because of falling demand for traditional cars as opposed to light trucks and crossovers. While it won’t be much consolation for the newly terminated employees, the automaker will also invest over $900 million for upgrades at plants in Ohio, Michigan, and Indiana that will allow production of new vehicles.
GM will cut the third shift at its Lansing Grand River plant in Michigan on January 16. The move will affect 810 hourly employees and 29 salaried workers. The factory produces the Chevrolet Camaro, Cadillac ATS, and CTS.
The company will also eliminate the third shift at its Lordstown, Ohio, factory on January 23. The move will cut 1,202 hourly workers and 43 people with salaried positions. The plant builds Chevy Cruze sedans.
The investments for building new products comprise $667.6 million for the Toledo Transmission Operations factory in Ohio, $211 million Lansing Grand River plant (the same one losing its third shift), and $37 million for the Bedford Casting Operations facility in Indiana. In total, GM says the funding lets it retain 784 workers at those sites.
GM’s numbers are stagnant compared to last year. The company's total volume in the U.S is down 3.6 percent to about 2.5 million vehicles through the first 10 months of 2016. Ignoring fleet sales in that figure, retail deliveries are up 1 percent year-over-year to nearly 2 million units. According to Automotive News, the automaker's sales of traditional cars are down 7.5 percent so far in 2016.
On the same day that GM made the announcement of these employment cuts, the automaker also released a statement with a reaction to the U.S election results. “GM looks forward to working with President-elect Donald J. Trump and the new Congress on policies that support a strong and competitive U.S. manufacturing base,” the firm’s announcement said. “GM will continue to do its part to transform the future of mobility and contribute to America's competitive strength.”
Source: General Motors, Automotive News