General Motors has announced it will axe third shifts at two US assembly plants, as demand falls for their products, laying off about 2,000 workers.
The automaker will end the third shift at Lansing Grand River on 16 January, ,affecting over 800 workers. The plant builds the Cadillac ATS and CTS and the Chevrolet Camaro. According to just-auto data, ATS and CTS sales year to date were both down 17% and Camaro volume off 9%.
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Lordstown, which makes the Chevrolet Cruze sedan, will lose 1,200 jobs. Cruze sales are down 20% year to date.
“As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at both facilities in the first quarter of 2017,” the automaker said in a statement.
GM softened the blow by also announcing a spend of US$900m at three factories – Toledo Transmission Operations in Ohio, Lansing Grand River and Bedford Casting Operations in Indiana – “to prepare the facilities for future product programs”.
Toledo Transmission Operations will get the bulk, $667.6m, retaining, GM claims, 739 jobs, Lansing Grand River Assembly will receive $211m “for a new product programme” and Bedford Casting Operations $37m “to support future product programmes”.
