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.

 

GM Lordstown and Lansing Grand River

 

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

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General Motors Lordstown and Lansing Grand River factories

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GM Statement on Production Announcement
 
General Motors today announced initiatives to strengthen and align its production output at key U.S. manufacturing operations. The plans include investing more than $900 million in three facilities — Toledo Transmission Operations in Ohio, Lansing Grand River in Michigan and Bedford Casting Operations in Indiana —  to prepare the facilities for future product programs.

GM also announced plans to align production output with demand for cars built at the Lordstown, Ohio, and Lansing Grand River, Michigan, assembly plants. As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at both facilities in the first quarter of 2017. 

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 31 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

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GM Production Announcement Fact Sheet

Investment details

 

Toledo Transmission Operations

$667.6 million for future product programs 

Jobs: 739 retained
Current employment: 2,028

 

Lansing Grand River Assembly

$211 million for a new product program
Current employment: 2,700

 

Bedford Casting Operations

$37 million to support future product programs
Jobs: 45 retained
Current employment: 719

 

Shift reduction details

 

Lansing Grand River

Third shift ends Jan. 16, 2017.
Affected employees: 810 hourly, 29 salaried
Products: Cadillac ATS and CTS and the Chevrolet Camaro
Current employment: 2,700


Lordstown

Third shift ends Jan. 23, 2017.
Affected employees: 1,202 hourly, 43 salaried
Products: Chevrolet Cruze sedans
Current employment: 4,500

 

GM Statement on Election of New U.S. President

2016-11-09
   
GM congratulates both candidates and parties on their hard-fought campaigns. 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.

GM will continue to do its part to transform the future of mobility and contribute to America's competitive strength.

General Motors Co. (NYSE: GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.