Why Is General Motors Company (NYSE:GM) Rehiring 500 Michigan Workers?

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Why Is General Motors Company (NYSE:GM) Rehiring 500 Michigan Workers?

General Motors Company (NYSE:GM) announced that it would rehire hundreds of Michigan assembly plant workers next year, Fortune reported.

The automaker said that it would bring back 500 workers at the Lansing Delta Township Assembly plant where it will build new two crossover SUVs.

Last week, General Motors announced that it will lay off 1,100 workers at the Lansing plant in May.

The assembly plant has about 3,000 hourly workers and 250 salaried workers. It will lose its third shift and about a third of its workers as the automaker moves production of its first-generation GMC Acadia to Spring Hill, Tenn.

From 2018, General Motors will start the production of two crossover SUVs, the Chevrolet Traverse and Buick Enclave.

The automaker said it would rehire 500 workers — who are to be laid off in May — because of “increased demand for larger vehicles.” Bringing approximately 500 jobs back would give “the company flexibility to meet market demand,” it added.

In addition, General Motors plans to create 220 jobs at a plant in Romulus, Michigan, where it is building 10-speed automatic transmissions.

Moreover, the automaker said would retain 180 jobs by shifting Lansing workers to a Flint assembly plant to support pickup truck production.

“We haven’t fundamentally changed any of our plans, but we continue to look for ways to improve our operations and find ways to help the country, grow jobs and support economic growth,” said GM spokesman Pat Morrissey.

General Motors said the new jobs are on top of 3,300 jobs it promised to create in the United States as part of its four-year contract with the UAW, Detroit Free Press reported.

The automaker noted that these new jobs are not directly connected to any new policies proposed by President Donald Trump.

General Motors Stock

Shares of General Motors Company (NYSE:GM) are up over 6% for the year. The stock has gained more than 16% during the last 12 months. Shares have jumped by over 19% during the past six months.