GM Announces Job Cuts, New Investments for U.S. plants

General Motors announced it will cut jobs at two U.S. plants producing the Chevrolet Cruze, Camaro, Cadillac ATS, and CTS. The automaker says the decision was influenced by consumer demand that continues to shift away from cars in favor of crossovers.

The Lansing Grand River facility in Michigan will be the first to reduce its workforce once it halts its third shift on January 16. GM says 810 hourly and 29 salaried employees will be affected. In addition to producing the Chevrolet Camaro, the Lansing facility builds the Cadillac ATS and CTS and currently employs around 2,700 workers.

Next on the list is GM’s Lordstown, Ohio, plant where the Chevrolet Cruze is produced. Here, the automaker plans to end the third shift on January 23, cutting 1,202 hourly and 43 salaried employees. Lordstown currently employs 4,500 workers.

A GM spokesman told Automotive News the announcement is unrelated to the recent U.S. elections, as labor rules require the automaker to announce major layoffs at least 60 days in advance.

Sales of all aforementioned cars have dropped this year. Through October 2016, sales of the Camaro and Cruze slid 9 and 20 percent, respectively, compared to the same period last year–sales of the ATS and CTS both slid 17 percent. Meanwhile, most of GM’s trucks and crossovers have seen sales increases throughout 2016.

GM also announced it will invest in three of its plants in the U.S., including its Toledo transmission facility where it says it will spend $667.6 million “for future product programs.” It will also invest $211 million at Lansing Grand River and $37 million at its casting operations at Bedford, Ind. (both for future product programs). A GM spokesman said these investments are in addition to the previously announced $5.4 billion GM plans to invest in plants over the next few years.

Source: GM, Automotive News (Subscription required)

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from Motor Trend http://www.motortrend.com/news/gm-announces-job-cuts-new-investments-u-s-plants/

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