Gm to Lay off 3,550 at 4 Pickup Truck and Suv Factories
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For about the past three years, the U.S. auto market has been shifting from pickup trucks and SUVs to cars and crossover vehicles, but the trend picked up in recent months due to gas prices that have reached $3.60 per gallon, on average.
GM expects the layoffs to begin July 14 at the Flint, Janesville and Pontiac plants, and Sept. 8 at Oshawa. Most of the factories had already seen layoffs and production cuts due to a parts shortage from a two-month strike at American Axle and Manufacturing Holdings Inc.
GM spokesman Tony Sapienza said the company will eliminate shifts with 750 workers each at Flint and Janesville, 1,150 workers in Pontiac, and 900 workers in Oshawa. Final numbers must be worked out with unions, he said.
Laid-off workers will get unemployment benefits and supplemental pay that total 80 percent of their normal 40-hour gross pay, said GM spokesman Dan Flores.
Greg Gardner, an analyst with the Oliver Wyman Group, said the cuts look like “a realistic assessment.”
“The full-size pickup and SUV market is not going to rebound anytime soon,” he said. “It looks like that they dont plan on making up very much of the production loss due to the American Axle strike.”
Gardner said GMs announcement reflects the industrys overall production forecast this year, down to about 15 million light vehicles from an earlier forecast of 15.5 million.
The Flint, Pontiac and Oshawa plants make the Chevrolet Silverado and GMC Sierra pickups, while Janesville manufactures the Chevrolet Tahoe and Suburban and GMC Yukon