General Motors Laying Off 2,000 Employees In Response To Lower Sedan Sales

Image courtesy of (paul bica)

General Motors announced this morning that it will permanently lay off nearly 2,100 U.S. auto workers in the coming months. Why? Apparently because drivers are buying fewer smaller cars.

According to GM, the layoffs will affect manufacturing plants in two states and a total of 2,083 employees will be out of work by the end of Jan. 2017.

The decision will affect the third shift at the company’s Lansing Grand River Assembly Plant in Michigan that builds the Cadillac ATS and CTS and Chevrolet Camaro and the Lordstown Assembly Plant in Ohio that builds Chevrolet Cruze sedans, the Detroit Free Press reports.

Specifically, the Lansing Grand River plant will cut 810 hourly employees and 29 salaried workers starting Jan. 19. The Lordstown plant will lay off 1,200 hourly and 43 salaried employees on Jan. 23.

GM says the cuts were made to production and costs in response to consumers’ preference for crossovers and trucks. Sales for the vehicles built at the plants have decreased in the past year, with Camaro sales down 9% year-over-year.

In contrast to its planned cuts, GM also announced it would invest more than $900 million in three facilities — Toledo Transmission Operations in Ohio, Lansing Grand River in Michigan and Bedford Casting Operations in Indiana —  to prepare the facilities for future product programs.

[via The Detroit News]

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