General Motors (GM), the largest US automaker, filed a WARN notice posted Thursday that said it would lay off 1,314 employees at two factories in Michigan, as reported by Detroit Free Press. This decision follows the company's announcement in October about delaying electric pickup truck production until 2025.
The Orion plant will see layoffs affecting 945 workers, and 369 employees will be cut from the Lansing assembly plant; GM clarified that the delay was unrelated to the recent United Auto Workers' strike, the longest in the US auto industry in 25 years.
Orion Assembly Plant's WARN Notice
GM filed a WARN notice with state regulators on Thursday, stating that the expected layoff date for the Orion Assembly plant is January 1, 2024, eliminating 945 jobs. GM announced in October that it would be delaying the production of electric pickup trucks at that facility by a year, transferring nearly 1,000 workers to other GM facilities in Michigan. The Detroit automaker had planned to start producing the electric GMC Sierra and Chevrolet Silverado at the suburban Detroit facility in late 2024.
Executive Vice President of General Motors Mary Barra explained that the delay allows engineering changes to enhance the trucks' efficiency and reduce production costs, ultimately increasing profitability.
United Auto Workers (UAW) members laid off at the Orion plant will be given other opportunities in Michigan, including positions at Factory ZERO in Detroit-Hamtramck. Salaried employees at Orion Assembly will also be placed in different internal options following GM's policy.
Lansing Grand River Assembly's WARN Notice
The other WARN notice said to eliminate 369 jobs at Lansing Grand River Assembly as they cease production of the Camaro muscle car. The job cuts will occur in phases, starting on January 1, 2024, and concluding in March of the same year.
GM expects to provide job opportunities for all affected team members as outlined in the UAW-GM National Agreement. The Lansing Grand River Assembly will continue manufacturing the Cadillac CT4 and Cadillac CT5, as stated in the company's written statement.
Increasing Uncertainty in The EV Market
GM's layoffs highlight the increasing uncertainty in the electric vehicle market. EV discounts have risen due to their prolonged unsold status on dealer lots relative to gas-powered vehicles. This contradicts earlier projections of a growing demand for electric cars. GM, committed to ending gas-powered vehicle sales by 2035, had also abandoned its goal of building 400,000 EVs from 2022 to mid-2024 in October.
Rival Car-Manufacturer's Challenges
Other car manufacturers are also reducing expenses due to supply chain hiccups and delivery delays. In October, Ford announced the layoff of 700 employees responsible for building the F-150 Lightning, the electric version of its top-selling vehicle. These layoffs will be distributed among three shifts at its Rouge Electric Vehicle Center in Dearborn.
On Monday, Ford announced the temporary layoff of 106 more employees at its Sterling Axle Plant in Sterling Heights, Michigan. This decision results from ongoing strikes at the Chicago Assembly Plant and Kentucky Truck Plant. Ford has temporarily laid off 268 out of nearly 2,200 employees at the Sterling plant.
