Partly Due to Cadillac Sales, GM Cuts 2,000-plus Jobs in Michigan, Ohio

Steph Willems
by Steph Willems

Lackluster demand for several General Motors models has forced the automaker to announce shift cuts at two assembly plants, leading more than 2,000 lost jobs.

It’s unpleasant news for autoworkers in America’s manufacturing heartland, but the General hints that four-wheeled saviors are on the way.

Automotive News reports that a third shift at GM’s Lordstown, Ohio assembly plant is due to disappear, along with a third shift in Lansing, Michigan. Both shifts are scheduled to dry up in mid-January.

Lordstown, which assembles the Chevrolet Cruze, will see 1,202 hourly and 43 salaried jobs cut, while Lansing can expect a loss of 810 hourly and 29 salaried positions. GM’s Lansing plant builds the struggling Cadillac ATS and CTS, as well as the Chevrolet Camaro.

ATS sales have sank since the model’s first full year of production, and October’s U.S. sales tally of 1,593 units is nearly 1,000 units less than the same month in 2015. Sales of the CTS were just a third of the previous October’s tally — the worst month for Cadillac’s mid-sizer this decade. Buoyed by incentives, the Camaro has held its own in recent months.

Year-to-date sales of the Cruze are off last year’s tally, mainly due to the changeover to a new generation of the compact sedan and hatch. Still, recent monthly sales seem healthy. As part of its new sales strategy, GM has also sent fewer vehicles to fleets, preferring instead to focus on higher-profit retail transactions.

GM’s announcement wasn’t all bad news, as the company threw out a cautious fig leaf to displaced autoworkers. The automaker plans to invest $900 million into upgrades at three plants, paving the way for new models it wouldn’t elaborate on. Automotive News claims the cash should benefit the Toledo Transmission Operations plant to the tune of $668 million, while $211 million will go to the Lansing plant. A further $37 million will be invested in GM’s metal-casting plant in Bedford, Indiana.

That cash should help retain 784 jobs.

[Image: General Motors]

Steph Willems
Steph Willems

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  • Geozinger Geozinger on Nov 10, 2016

    I've noticed that prices seem to have gone up on the new Cruze, in addition to it looking like a junior Hyundai. Too bad, because with the addition of the upcoming hatch it's probably the most comprehensive small car line in the Chevrolet Division since the 1990's. I'm sorry to hear my third shift homeys will be laid off at Lordstown, but that shift was tenuous anyway. It was added on during the run of the last body style when pricing made the previous Cruze a great deal. I suspect GM will figure out production to pricing ratios and get these workers back on line. I just don't know how soon. Happy Holidays, Lansing and Youngstown...

    • See 1 previous
    • SCE to AUX SCE to AUX on Nov 10, 2016

      "in addition to it looking like a junior Hyundai" I guess that's why I like it so much. My friend the Chevy fan, told me he doesn't, for that same reason.

  • Conslaw Conslaw on Nov 10, 2016

    I liked the Cruze when I visited a Chevy dealer to check them out. The problem is the price of a well-equipped Cruz is $22,000. For that you can get a number of just as well equipped midsized cars.

    • Gtem Gtem on Nov 10, 2016

      This was my issue back in 2011 when I looked at a Cruze Eco 6MT. Drove fantastic, unequivocally "German" feeling going down the road, nice relaxed gearing. But they were asking about $19k, which put it squarely into discounted midsize space.

  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • Ravenuer The rear view of the Eldo coupe makes it look fat!
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
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