GM to Layoff 1,100 Michigan Employees as Domestic Production Shifts South
General Motors has said it will discharge 1,100 employees at its Lansing Delta Township assembly plant in Michigan in May. Last year, America’s largest automaker announced an additional 800 jobs at its Spring Hill plant in Tennessee to aid in production of the updated GMC Acadia. However, those positions seemed to have come at the expense of its Michigan workforce.
The cuts come after GM’s promise to invest another $1 billion into U.S. factories earlier this year. President Trump has insisted that American car builders manufacture more product within the country while condemning any ventures in Mexico. While General Motors may be shifting production south, it’s not so far south as to garner any presidential ire. The automaker has claimed that the billion dollar investment would maintain or create 1,500 U.S. jobs. Still, the net employment loss in this instance does not seem to reflect that.
The Lansing factory will continue assembling the Buick Enclave and Chevrolet Traverse after a month of retooling, GM spokesman Tom Wickham told Reuters in an emailed statement.
Last November, the company announced it would be forced to eliminate roughly 2,000 jobs — ended the third shift for the Lordstown, Ohio and Lansing Grand River plants at the beginning of 2017. It also said there were plans to suspend the second shift from its Detroit-Hamtramck plant, which would mean 1,300 lost jobs by March.
Those layoffs were largely related to consumer interest gradually turning away from small passenger cars. GM added roughly 8,000 new jobs last year and intends to bring more up from Mexico. Axle production for the next generation Chevrolet Silverado and GMC Sierra will be consolidated in the United States, creating an additional 450 American jobs.
While GM CEO Mary Barra initially stated that the president’s desires had no impact on the company’s future plans, she also said, “I want to be part of the solution that allows the country to be strengthened along with business,” in a January press conference. That, in conjunction with the billion dollar investment, seems to have at least restored Trump’s faith in the automaker.
“[General Motors’] committed to invest billions of dollars in its American manufacturing operation, keeping many jobs here that were going to leave. And if I didn’t get elected, believe me, they would have left,” Trump said last month.
[Image: GM]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Well, with Opel sold off, maybe put some Buick assembly in Michigan. Buick City is long gone, but there's plenty of slack elsewhere for a few new Buick models, like the Buick Regal wagon. Make it a tall wagon with traditional comfortable Buick seats and AWD, and it just might sell.
I guess it does not matter where you work at GM. You still work for a shrinking company that produces product that are not popular. In 1996 GM was the world's largest company with a mediocre product line. Today they are the world's third largest company with a mediocre product line. GM blows all night long.