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June 26, 2003

USA: General Motors relocating 3,000 Michigan engineers – paper

General Motors is moving 3,000 United States-based engineers and support staff from its metal fabricating and manufacturing divisions in Troy and Warren, Michigan, to its Centrepoint Business Campus in Pontiac, according to the Detroit News.

By bcusack

General Motors is moving 3,000 United States-based engineers and support staff from its metal fabricating and manufacturing divisions in Troy and Warren, Michigan, to its Centrepoint Business Campus in Pontiac, according to The Detroit News .

The motor city newspaper, citing GM spokesman Pat Morrissey, said the move is part of an ongoing effort by GM to consolidate 14 employment centres it operates in southeastern Michigan into five campuses. By vacating leased office space in favour of GM-owned facilities, the company said it will shave costs and boost efficiency, the report added.

The newspaper noted that Troy city officials were not pleased with the decision, but recognised GM’s need to reduce costs. In 1999, Troy temporarily blocked the move of 700 GM workers to the company’s Warren Technical Centre in Warren but the state legislature eventually amended a law to provide for the move, the report also said.

The move of “Metal Fab” employees will take place in phases, with about 1,000 moving this year and the rest in 2004, Morrissey told the newspaper, which noted that the consolidation remains a work in progress that began in 1996 and is scheduled to be completed in 2006.

“We’ve taken 47% of the cost out of the organisation and increased throughput, or the amount of vehicles we’re able to work on on an annual basis by 33%,” Jim Queen, GM’s vice president of engineering, said, according to The Detroit News .

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