GM to lay 2,000 workers as it cuts small car production

DETROIT - General Motors on Wednesday simultaneously announced plans to invest $900 million in at three plants in the U.S. and said it would lay off 2,000 workers because of slowing car sales.

GM said it plans to cut the third shift at its Lansing Grand River Assembly Plant and Lordstown Assembly Plant in Ohio in January because sales of cars made at those plants are declining.

The automaker assembles the Cadillac ATS and CTS and the Chevrolet Camaro at its plant in Lansing and makes the Chevrolet Cruze at its plant in Lordstown.

"Sales in the the car segment have been softening. We’ve had a slight increase in retail sales of the Cruze, but rental and fleet sales have dropped off," said GM spokesman Tom Wickham.

Even though automakers have been enjoying record level sales of new vehicles in the U.S. sales of passenger cars have been declining and Americans have been increasingly buying crossovers, SUVs and pickups.

In Lansing, the third shift will end on Jan. 16, affecting 810 hourly employees. In Lordstown, the third shift will end on Jan. 23, affecting 1,202 hourly employees.

GM also said it plans to invest:

  • $667.6 million at Toledo Transmission in Toledo
  • $211 million at Lansing Grand River
  • $37 million at Bedford Casting in Indiana

The automaker said the investments will all "support future programs," but did not identify those programs.

Detroit Free Press


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