GM to Fire 1,500 Ohio Workers

Passenger car sales are slumping. In response automakers are laying off workers at sedan-producing factories.

General Motors Co. will fire as many as 1,500 workers at the end of June at the Ohio factory building the Chevrolet Cruze compact car, undercutting President Donald Trump’s bombast about bringing back auto jobs.

The Lordstown assembly plant will operate on only one shift as part of the cutback, spokeswoman Dayna Hart said in an email. The company will be roughly halving the workforce at the factory, though Hart wrote that it’ll remain open for the foreseeable future.

“Lordstown is among the few remaining builders of small cars in the U.S. and it is our plan to keep it that way,” she said. “GM recently stated our commitment to sedans and the role Cruze plays in that commitment.”

GM’s plans for its Ohio factory are the result of American consumers snubbing cars in favor of crossovers. Cruze sales plunged 26 percent in the first three months of the year to less than 40,000 units and slipped 2.2 percent last year. Automakers have been laying off workers in passenger-car plants as roomier sport utility vehicles have seized record share of industrywide deliveries.

Trump Statement

“We’re turning it around,” Trump said Thursday from the White House Rose Garden. “Already, Chrysler is coming back with auto plants. Many companies are now in Michigan, Ohio, different places, Pennsylvania. They’re building beautiful, brand new auto plants. Nobody thought they’d ever see that happen.”

Not quite. And although the love affair is with SUVs total sales have peaked.

Mike "Mish' Shedlock

Comments (19)
No. 1-19
Mike Mish Shedlock
Mike Mish Shedlock

Editor

I am in Arches National Park. Posts may be a bit more infrequent at times.

MissionAccomplished
MissionAccomplished

Lordstown assembly plant. That name always takes me back to
the 1971 Chevy Vega, the Motor Trend Car of the Year, also on everyone’s short list for Worst Car of All Time.

ipso_facto
ipso_facto

Imagine if the automakers were allowed to build cars the consumers actually wanted rather than the high MPH 'jelly beans' the government forces them to make instead.

shred1
shred1

No, AWC, it was the unions killed Detroit.