LANSING, Mich. (Michigan News Source) — General Motors and Stellantis have announced significant layoffs in Michigan, marking another round of workforce reductions as the auto industry encounters slowing demand and financial pressures.
General Motors layoffs.
On November 15, General Motors revealed plans to cut 1,000 global jobs, with most reductions occurring at its Global Tech Center in Warren, Michigan. These layoffs include both salaried and hourly positions, though the automaker did not disclose specifics about the hourly cuts, according to Bridge Michigan. This is GM’s second major workforce reduction in recent months; in August, the company laid off 1,000 employees, including 600 at the Warren facility.
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“Layoffs are not a tremendous surprise, given the global, intense competition that a company like General Motors is in right now,” Glenn Stevens, executive director of the statewide auto advocacy group MICHAuto, said.
Stellantis layoffs.
Stellantis, headquartered in Auburn Hills, has also made substantial cuts.
In October, the company laid off 1,100 workers at its Warren Truck Assembly Plant following the end of production for the Ram 1500 Classic. Earlier this month, Stellantis idled an additional 400 workers at a parts facility in Detroit and previously offered buyouts to salaried employees over the summer. The company also reduced its workforce by 1,100 at its Jeep plant in Toledo, just south of the Michigan border.
Moreover, the Sterling Heights Assembly Plant, which builds Ram 1500 pickups, announced more than 260 indefinite layoffs in recent weeks.
“The morale is horrible. Not only are people laid off, they’re having issues with unemployment,” Eric Graham, president of United Auto Workers (UAW) Local 140, told The Detroit News.
Michael Spencer, president of UAW Local 1700, expressed similar concerns about the impact on workers at the Sterling Heights plant.
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“You’re laying people off before Thanksgiving and Christmas. It’s a tough pill to swallow,” Spencer said.
EV production has proven challenging.
Automakers have cited challenges in making electric vehicle (EV) production profitable, as well as consumer hesitancy due to high prices. EVs accounted for 9% of U.S. vehicle sales in September, up from 7% earlier in the year, but the growth still falls short of industry projections.
“This is an unmistakable sign the auto industry is slowing,” Patrick Anderson, CEO of Anderson Economic Group, said. “Consumers are expressing some reluctance about buying the higher-priced cars, notably electric cars. Manufacturers are cutting back on their costs in anticipation of a further slowdown or even a recession.”
General Motors, one of Michigan’s largest employers with approximately 25,000 workers in southeast Michigan, said it continues to hire for certain positions at the Tech Center and other locations despite the recent layoffs. Stellantis has not announced specific hiring plans.
These workforce reductions follow similar moves by Ford, which recently idled 750 workers at its F-150 Lightning production facility in Dearborn, citing inventory issues and slowing demand for electric trucks.
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