General Motors Announces Changes in Two Michigan Plants Manufacturing Bolt EV and Bolt EUV Crossover

Dec 15, 2023 11:03 PM EST

General Motors is set to lay off approximately 1,300 workers across two of its Michigan plants in the coming year, as reported in WARN notices submitted to state regulators. These workforce reductions will impact GM's Orion Assembly and Lansing Grand River Assembly facilities.

Production Delay, Workers Layoff

The decision to downsize follows the automaker's announcement in October, revealing a delay in the production of electric pickup trucks until 2025. Specifically, the Orion plant will see 945 employees affected by the layoffs, while the Lansing assembly plant will have 369 employees facing job cuts.

As reported in East Bay Times, the Orion plant will see 945 employees affected by the layoffs, while the Lansing assembly plant will have 369 employees facing layoffs.

For General Motors, these plants are very important because they make cars like the Bolt EV and Bolt EUV crossover. GM had big plans to add more electric cars to its line-up as well. The EV Chevy Silverado and EV GMC Sierra were intended to be built at the Orion plant.

However, a pivotal announcement made by the company in October dramatically altered the fate of these workers. General Motors disclosed its decision to postpone the commencement of electric pickup truck production until 2025. This decision, shared by CBS News, directly contributed to the impending layoffs scheduled to take effect in the upcoming year.

General Motors, while assuring job opportunities for the affected team members under the provisions of the UAW-GM National Agreement, emphasized its commitment to maintaining operations at the Lansing Grand River Assembly, where the production of Cadillac CT4 and Cadillac CT5 models will continue.

Meanwhile, for the displaced UAW members at the Orion plant, alternative positions within Michigan, including roles at Factory ZERO in Detroit-Hamtramck, will be offered. Additionally, salaried employees from the Orion Assembly will be accommodated in accordance with GM's internal employment policies.

Mlive Michigan shared details regarding this latest news. It cited Cox Automotive's report, which stated as per the notices, the employees who are affected by these circumstances retain "bumping" rights under the collective bargaining agreement, which opens the possibility of their placement in alternative local GM plants.

There is a potential scenario where a majority of Lake Orion employees may find employment opportunities elsewhere within the company.

Challenges in EV Manufacturing

The 2024 forecast from Cox Automotive reveals a slowdown in the electric vehicle (EV) market, with initial optimism about EV growth in the U.S. now giving way to a more realistic perspective. While EV sales are increasing, customer acceptance is evolving slowly. Moreover, the declining EV prices have resulted in higher inventory levels for most automakers.

In the upcoming year, the automotive industry faces the challenge of persuading consumers to fully embrace EVs, a task highlighted by the Cox Automotive report as significant and not easily achieved. Furthermore, as shared by CBS News cost-cutting measures are on the rise, exemplified by Ford's decision to lay off 700 employees responsible for manufacturing the electric F-150 Lightning. Thus, the layoffs to be implemented across three shifts at the Rouge Electric Vehicle Center in Dearborn.