The car maker General Motors announced that it will be cutting down one of its shifts from both the Lordstown and a Michigan factory and that it will be giving notice to some of its employees.
General Motors has announced some its future initiatives as the automaker will be looking to strengthen and update its production and output technology in some of its key United States manufacturing plants.
As the company announced that it will be updating its facilities so as to better adapt to their future production programs, it declared an investment value of over $900 million.
The sum will be distributed amongst three of its facilities namely the Ohio Toledo Transmission Operations, the Indiana Bedford Casting Operations and the Michigan-based Lansing Grand River.
As General Motors (GM) announced the investments and hinted at possible future products, it also had to make a more unpleasant statement regarding the fate of two of its factories’ third shifts.
According to Tom Wickham, the GM spokesman, after careful considerations, the company decided that the elimination of the third shift was mandatory in the future realignment plans.
The Detroit-based carmaker also went to declare that the decision to cut back on the shifts number was made so as to better match the customer supply and demand.
Following the year’s third quarter reports, the auto industry revealed the rising customer trend and inclination towards bigger vehicles like SUVs as they are shifting away from sedans and other small cars.
The General Motors Lordstown Assembly Complex will have to dismiss 1,202 of its third shift hourly workers as of January 23. A number of 43 salaried employees will be given the option of transferring to another of the company’s facilities.
The Lordstown Assembly Complex has a current total number of workers which surpasses 4,500 and as of 2010, has been exclusively producing the Chevrolet Cruze.
Lordstown Assembly Complex will not be the only factory to have had its third shift cut down. The Michigan-based Lansing Grand River Assembly Plant will undergo the same change with an even closer effective day set for January 16.
The Lansing Grand River Assembly Plant will have to dismiss a number of 29 salaried workers and a further 810 hourly ones which used to work in its third shift.
The aforementioned Michigan Assembly Plant currently has a total number of 2,700 employees which help in the production of the Chevrolet Camaro and the ATS and CTS Cadillac models.
Such a third shift cut back is not a new decision, as General Motors took the same measure back in 2006 so as to scale back its nationwide production.
As the 2006 cut back affected 1,450 Lordstown workers, the 2010 transition from a Cobalt to the Cruze production plant saw the return of the third shift and its needed employees.
The General Motors Lordstown Assembly Plant has a current daily production goal of more than 1,200 units, goal that is believed to fall by over 400 units after the January layoffs.
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