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Published: Thu, November 10, 2016
Economy | By Melissa Porter

GM to lay off 2000 workers at 2 plants in Ohio, Michigan

GM to lay off 2000 workers at 2 plants in Ohio, Michigan

General Motors will suspend its third production shift at the Lordstown Assembly Plant beginning early next year.

The Lordstown plant builds the Chevrolet Cruze. Meanwhile, the Lansing Grand River factory is responsible for the Chevrolet Camaro muscle auto and the Cadillac ATS and CTS luxury vehicles. The company would not disclose the new vehicles or the transmission components. A drop in sales volume is said to be the reason why GM has pulled the shift.

Another 840 will be idled at the Lansing Grand River factory.

The products that the company will produce with the new investment includes transmissions, converter housings, heads and small engine blocks, as well as a "new product program". The company is cutting the third shift in January.

The plant, located at 920 Townsend St., employs 2,700 people.

GM says the cuts were made to production and costs in response to consumers' preference for crossovers and trucks. Sales of all four cars the plants build are down sharply this year through October compared to the same months in 2015. The factories in question are located in Lordstown, Ohio and Lansing, Michigan.

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

The Detroit News reported in May that GM plans next year to move some light-duty pickup production to the Flint Assembly Plant from Mexico.

While GM executives remain upbeat about the potential of the US new-car market, it's looking more and more like the market has passed its cyclical peak. The cuts will take effect in January next year.

General Motors is announcing hundreds of jobs are being cut at the Lansing Grand River Plant. "Things are slow right now, but, when they ramp back, up it will be good".

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