Major company layoff announcement to hit Michigan hard

On Monday, General Motors (GM) announced it plans to lay off 1,100 workers in May at its Lansing, Michigan, assembly plant, marking the fourth layoff since November.

Reuters reported that GM is eliminating the third shift at its Lansing Delta Township plant, which builds the Chevrolet Traverse, the Buick Enclave, and the GMC Acadia, as the company shifts production of a newer version of the GMC Acadia SUV to its Spring Hill, Tennessee, plant.

GM spokesman Tom Wickham issued a statement saying the Lansing plant will continue to build the Buick Enclave and Chevrolet Traverse after it retools for a month.

After President Trump urged U.S. manufacturing companies to move their operations to the U.S. in an effort to boost American jobs, GM announced in January that it vowed to invest $1 billion in U.S. factories to create or retain nearly 1,500 U.S. jobs.

Since the announcement, Trump has frequently praised the manufacturing giant’s investment in expanding and retaining U.S. jobs.

Trump said at a news conference in February that GM “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.”

Furthermore, GM pledged it would move axle production — previously built by American Axle & Manufacturing Holdings Inc. — for its next line of full-size pickup trucks, including those previously built in Mexico, to plants in Michigan, creating an additional 450 U.S. jobs.

Reportedly, GM has been scaling back production since last November, citing declining sales of cars as demands rose for SUVs and other larger vehicles.

GM said in November it would cut about 2,000 jobs when it ended the third shift at its Lordstown, Ohio, and Lansing Grand River plants in January. In December, it said it planned to cancel the second shift and cut nearly 1,300 jobs from its Detroit-Hamtramck assembly plant in March.

The four rounds of layoffs will cut a total of 4,400 jobs. In recent years, the automaker has been responsible for adding a large number of U.S. jobs, including 105,000 U.S. employees at the end of 2016 (an increase of 8,000 jobs from the end of 2015), according to a GM filing in February.

It was also announced on Monday that “GM will sell its European operations to France’s PSA Group in a move that doubles down on the U.S. company’s aim of being less global but more profitable,” says the report.

H/T: Reuters

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