Bad news don't come alone, so as the car sales decline from month to month, General Motors said it will lay off 2,000 workers because of slowing car sales even as it makes new investments in its plants.
GM said it plans to cut the third shift at its Lansing Grand River Assembly Plant in Michigan and Lordstown Assembly Plant in Ohio in January because sales of cars made at those plants are declining. The automaker assembles the Cadillac ATS and CTS and the Chevrolet Camaro at its plant in Lansing and makes the Chevrolet Cruze at its plant in Lordstown. GM had a slight increase in retail sales of the Cruze, but rental and fleet sales have dropped off. Even though automakers have been enjoying record level sales of new vehicles in the U.S. sales of passenger cars have been declining and Americans have been increasingly buying crossovers, SUVs and pickups.
In Lansing, General Motor is going to lay off more than 800 workers of its 2,700 workers. The shift is no longer needed because of a decline in demand for cars as customers continue to favor trucks and crossovers. GM is required to give employees 60 days notice prior to mass layoffs. The number of workers involved in the layoff could fluctuate depending on how many people decide to retire or leave the company prior to layoffs.
