GM Planning 2,000 Layoffs on Soft Demand for Sedans, Sports Cars
Major Investments Announced for Toledo Transmission, Lansing Plants
In yet another indication of the tectonic shift of the automotive market in the direction of SUVs and light trucks, General Motors has announced major cuts at its Lansing Grand River and Lordstown, Ohio, plants. Lansing builds the Alpha-platform Chevrolet Camaro and Cadillac ATS and CTS. Lordstown builds the Chevrolet Cruze compact sedan. The plants will drop their third shifts in January. The changes are expected to result in a total of 2,000 job cuts. According to Automotive News, all four of the models had more than a 100 day inventory.
GM says it plans major investments at its Toledo, Ohio, transmission plant, retaining 739 jobs and totaling $667.6 million. Toledo builds the 6L50/80/90 six-speed transmissions used in the Silverado, Sierra, Colorado and Canyon pickups, as well as the new 8L90E eight-speed transmission that has become a staple in the K2XX Silverado and Sierra fullsize trucks.
The Lansing Grand River plant is getting a $211 million investment for an unspecified future product. However, many believe the product may be a future SUV or crossover, possibly based on the rear-wheel-drive Alpha chassis underpinning the ATS, CTS, and Camaro.
Finally, an investment of $37 million was announced for the Bedford, Indiana, casting plant. Bedford makes the engine block castings for the EcoTec3 small-block V-8 and V-6 engines, most of which go to the Tonawanda, New York, plant, which builds the majority of fifth-generation small-block engines for fullsize trucks, the Chevrolet Camaro, and Corvette.
Source: General Motors, Automotive News