General Motors Company (GM) to Cut 1,100 Jobs at Michigan Plant

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General Motors Company (GM) to Cut 1,100 Jobs at Michigan Plant

General Motors Company (NYSE:GM) will lay off 1,100 workers at its Lansing Delta Township Assembly plant, USA Today reported.

The assembly plant, which employs roughly 3,000 hourly workers and 250 salaried workers, will lose its third shift and about a third of its workers, according to the report.

The workers received a 60-day notice from the company on Monday. The automaker is looking to move production of the first-generation GMC Acadia to Spring Hill, Tenn. in May.

The Lansing Delta Township Assembly plant also manufactures two crossover SUVs, the Chevrolet Traverse and Buick Enclave.

“The new Buick Enclave and Chevrolet Traverse enter the market at a time when crossovers have become the most vibrant, dynamic and fast-growing models of the industry,” Erin Davis, GM’s Lansing spokeswoman, said in a statement.

Bill Reed, president of UAW Local 602, told the newspaper that the layoffs were expected. UAW Local 602 represents the hourly workers at the Michigan plant.

According to analysts, the automaker could start production of a Cadillac crossover at the Lansing Delta Township Assembly plant. The company has invested $583 million in the plant since 2014 to prepare for new vehicle production.

In other new, General Motors Company (NYSE:GM) has decided to sell its two major European brands to French automaker PSA Group.

In a deal valued at about $2.3 billion, GM is selling Opel and Vauxhall brands, as well as the European arm of its financial division.

The sale includes 11 manufacturing facilities and one engineering center that collectively employ about 40,000 people.

The deal, which is subject to the regulatory approval, is expected to close by the end of the year.

GM struggled in the world’s third-largest auto market for nearly two decades, The Washington Post reported.

Talking to CNBC on Monday, GM CEO Mary Barra said the automaker is not completely exiting the European market. The company still plans to sell Chevrolet and Cadillac vehicles to the European buyers.

In a statement, Barra said that the sale will allow General Motors Company (NYSE:GM) to invest in “our core automotive business and in new technologies that are enabling us to lead the future of personal mobility.”