General Motors stated on Monday it will lay off 1,100 employees in May at its Lansing Delta Township assembly plant located in Michigan as it shifts production of an automobile to Tennessee.
The biggest U.S. automaker last year included 800 jobs at its Spring Hill, Tennessee plant to develop a brand-new version of the GMC Acadia SUV. The Lansing plant will keep constructing the Buick Enclave and Chevrolet Traverse after it retools for a month, company’s spokesperson Tom Wickham said in an emailed statement.
GM has stated other U.S. factory cuts after it said in January it is going to spend another $1 billion in U.S. factories.
U.S. President Donald Trump has prompted GM and other automakers to develop more cars in the nation as part of his promise to enhance U.S. manufacturing jobs and prevent the industry from investing in Mexico.
The automaker has said the $1 billion investment would enable it to produce or retain 1,500 U.S. jobs, however has not defined what jobs are affected.
General Motors has also said it will start work on bringing axle production for its next generation of full-size pickup trucks, including work formerly carried out in Mexico, to operations in Michigan, producing 450 U.S. jobs. The part was previously developed by American Axle & Manufacturing Holdings Inc.
GM stated in November it would cut about 2,000 jobs when it completed the third shift at its Lordstown, Ohio, and Lansing Grand River plants in January. In December, it stated it planned to cancel the 2nd shift and cut almost 1,300 jobs from its Detroit-Hamtramck assembly plant in March.
Those job cuts were triggered by lower need for vehicles as Americans purchase more SUVs and other bigger cars.
Trump has consistently praised GM’s January investment announcement.
