GM Letting Go 2,000+ Workers Permanently On Falling Small Car Sales
In an effort to reduce the bloated inventory at two of its car plants, General Motors Co. will permanently let 2,000 hourly workers go in January. The move is in response to consumers moving away from purchasing small cars.
General Motors Co. recently said it would lay off about 2,000 hourly workers permanently come January at two of its car plants to reduce bloated inventory as consumers
The layoff announcement comes on the same day the company said it was investing over $900 million for upcoming products at three of its plants. According to GM, third shift for both its Lansing Grand River Assembly Plant and Lordstown Assembly Plant in Ohio would be cut, starting in January.
The Lordstown plant, which is responsible for the development of Chevrolet Cruze, will see its last third shift on Jan. 23, 2017. The move affects 43 salaried employees and 1,200 hourly workers. The factory employs over 4,500 workers.
The Lansing plant is set to lay off 29 salaried employees and 810 hourly workers. 2,700 workers are employed at this factory. The plant is responsible for the Chevrolet Camaro, and the Cadillac ATS and CTS.
According to a GM spokeswoman, the layoff numbers include over 300 temporary workers.
GM, which is based in Detroit, said the production cut is due to consumers’ fascination with trucks and crossovers instead of cars. Sales at the company’s car plants are down significantly through October compared to 2015.
GM will invest $211 million toward its Lansing Grand River for new equipment and tooling as well as a 32,000-square-foot addition to its body shop. The company declined to say what and when the vehicle would be at the plant.
It was also giving $667.6 million to the Toledo Transmission plant for future projects, which would retain more than 700 jobs. $37 million is going to the Indiana Bedford Casting Operations, which would keep 45 jobs.
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