GM cuts jobs due to falling sales but invests in new products

According to foreign media reports, General Motors announced on November 9 that it would lay off more than 2,000 employees at its factories due to falling sales, but planned to invest $900 million in three factories to produce new products .

GM said it will cancel the third production shift at its Lansing, Michigan, plant on January 16, affecting 810 hourly jobs and 29 regular employees. The Lansing, Michigan plant mainly produces the Chevrolet Camaro, Cadillac ATS and Cadillac CTS.

The Chevrolet Cruze production plant in Lordstown, Ohio will also cancel the third shift starting January 23, which will affect 1,202 hourly jobs and 43 regular jobs.

U.S. light vehicle sales have fallen 0.3% this year compared to the same period last year, but vehicle deliveries have fallen 9.7%. GM's U.S. sales fell 7.5% year-on-year, reflecting the drawbacks of its heavy retail business.

According to data from the Automotive News Data Center, as of November 1, the inventory cycle of all GM brands has reached more than 100 days. A GM spokesperson said that the decision to lay off employees was made because GM's focus in the US market shifted to the light truck field and had nothing to do with the US presidential election. Labor laws require companies that lay off employees on a large scale to give at least 60 days' notice.

However, at the same time, GM plans to invest a total of $900 million in plants in Ohio, Michigan and Indiana, which will add another 784 jobs. GM said it will invest $668 million in the Toledo Transmission Operations Center in Ohio, $211 million in the Lansing plant, and another $37 million in the Bedford plant in Indiana.

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