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GM Announces 2,000 Layoffs, More Production Shifts Idled

Posted in auto industry, Cars, Detroit, GM, New Cars, Newsworthy by Suzanne Denbow | January 27th, 2009 | Leave a Reply |

General Motors Lansing Delta Township assembly plant

Resorting to yet another round of job cuts, ailing automaker General Motors has announced they will be laying off 2,000 employees from their production facilities in Michigan and Ohio. Beginning in March, GM will be eliminating an entire production shift from their Delta Township plant near Lansing, MI, leaving 1,000 workers out of work for an indefinite length of time. At their Lordstown, Ohio plant, GM will cut their workforce by another 800 employees, which will bring the total number of layoffs at the Lordstown plant to 2,800 over the course of just a few short months. “We have hope things will turn and change,” said Dave Green, president of UAW Local 1714 in Lordstown. “This is no fault of our own. People are not purchasing cars right now.”

Other industry analysts aren’t nearly as optimistic, estimating that GM’s recent volley of plant closures and production cancellations has reduced the automaker’s estimated output for this quarter by a whopping 250,000. Part of GM’s aggressive restructuring plan aimed at helping GM break even, GM’s budget-trimming isn’t limited to the assembly line. In a desperate effort to ensure they have a noticeable financial improvement to show the Treasury Department during their scheduled progress report on February 17, GM also plans to take the ax to its dealer network, ultimately planning to eliminate 27% of its 6,400 dealers.

Source: Detroit News

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