|Published : 16 Mar 2017, 14:20:25|
GM will rehire 500 Michigan workers slated for layoffs
General Motors Co plans next year to rehire 500 Michigan assembly plant workers who are to be laid off in May, citing increased demand for larger vehicles, the company said on Wednesday, reports Reuters.
GM said last week it planned to lay off 1,100 workers in May at its Lansing Delta Township assembly plant in Michigan. The company is moving production of the GMC Acadia mid-size SUV to Spring Hill, Tennessee, from the factory, which will build just two models, the Chevrolet Traverse and Buick Enclave SUVs.
The company said that when it begins full production of the new versions of the two models in 2018, it would "bring back approximately 500 jobs to give the company flexibility to meet market demand."
Last year, pickups and SUVs accounted for 59.5 per cent of US auto sales, up from 55.8 per cent in 2015.
GM also said it would add 220 jobs at a plant in Romulus, Michigan, that is building 10-speed automatic transmissions, and it would retain 180 jobs by shifting Lansing workers to a Flint assembly plant to support pickup truck production.
The announcement came as US President Donald Trump visited Michigan to announce his administration will review fuel efficiency standards, a move that could help automakers sell more larger models.
Trump praised recent job announcements by Ford Motor Co, Fiat Chrysler Automobiles NV and GM.