General Motors (GM) is making a devastating announcement to the people of Michigan—they are set to lay off 1300 workers from their plant in Hamtramck. The announcement came to the dismay of many as the plant in question has served as the production home to a multitude of vehicles, such as the Chevrolet Volt, Cadillac ELR, Impala, and Buick LaCrosse.
The job cuts serve as part of a new restructuring of GM that was announced back in November. This massive overhaul is part of the company’s attempt to reduce costs and return to profitability. GM is shifting its focus to production of sport utility vehicles, pickup trucks, and other higher margin vehicles and away from the car models typically found in the Hamtramck plant.
Unfortunately, with this shift, the Hamtramck plant will be losing the production of the Chevrolet Volt, Cadillac ELR, Impala, and Buick LaCrosse and will instead be dedicating itself to producing larger vehicles. Despite the job cuts, GM has stated that production at the Hamtramck plant will continue, allowing for hires of new workers with a new set of skills.
Not only does this affect GM’s workers in Michigan, but the announcement also has an effect on suppliers nationwide. GM indicated that suppliers focused on small car production will feel the impact of reduced purchasing, primarily due to the restructuring of their production line.
GM’s CEO Mary Barra has expressed her own personal disappointment with the announcement, citing GM’s commitment to the Hamtramck plant. Barra stated that the plant has a long history of quality production, and it is only due to the industry shift that these job cuts are being made. She assured that she and her team will do their best to support the affected workers.
The news of GM’s layoffs in the Hamtramck plant surely isn’t welcome by the people of Michigan, but with the automotive industry’s focus being centered around producing larger vehicles, the announcement was inevitable. The good news is that GM has pledged their commitment to the plant and their workers, and looks to provide them with resources to make the transition as easy as possible.