General Motors plans next year to hire 500 Michigan assembly plant employees once again, who are to be laid off in May, mentioning increased demand for larger automobiles, the company stated.
GM stated last week it prepared to lay off 1,100 employees in May at its Lansing Delta Township assembly plant located in Michigan. The company is relocating production of the GMC Acadia mid-size SUV to Spring Hill, Tennessee, from the factory, which will develop just two models, they are Chevrolet Traverse and Buick Enclave SUVs.
The automaker said that when it starts full production of the new variations of the two models in 2018, it would revive roughly 500 jobs to provide the company flexibility to meet market need.
In 2016, pickups and SUVs represented 59.5 percent of U.S. auto sales, rise of 55.8 percent in 2015.
General Motors also stated it would include 220 jobs at a plant located in Romulus, Michigan, that is building 10-speed automatic transmissions, and it would maintain 180 jobs by moving Lansing employees to a Flint assembly plant to back pickup truck production.
The statement came as U.S. President Donald Trump visited Michigan to inform that his administration will examine fuel efficiency standards, a move that could assist car manufacturers sell more bigger models.
Trump applauded new job announcements by Ford Motor, Fiat Chrysler Autos NV and GM.
“That’s just the start,” he said in a speech to autoworkers in Ypsilanti, Michigan, on Wednesday. “I told (the automobile executives) that’s peanuts, that’s peanuts. We’re going to have a lot more. They’re going to be building new plants, expanding their plants.”
GM did not credit the president with the decision to increase jobs.
“We haven’t fundamentally modified any of our plans, but we continue to look for ways to improve our operations and discover ways to help the country, increase jobs and support economic growth,” GM spokesman Pat Morrissey stated.