GM to End 2nd Shift at Detroit-Hamtramck, Affecting 1,300 Jobs

DETROIT, MI — As demand for its small cars slows, General Motors said Tuesday it will eliminate about 1,300 second-shift jobs at its Detroit-Hamtramck plant in March. It’s the third time the Detroit automaker has eliminated second-shift jobs, having previously announced in November cuts at plants in Lansing, Michigan, and Lordstown, Ohio.

Together, some 3,300 jobs will be cut at the three plants. The automaker said it will try to find jobs at its other plants for the displaced workers. GM announced the Metro Detroit cuts in a required state Worker Adjustment and Retraining Notification Act (WARN) filing with the state.

The automaker has been in recovery since its 2009 bankruptcy and subsequent federal bailout, and the shift eliminations at the three plants are the first permanent job cuts at GM plants since 2010, CNN Money reported.

GM said consumers are shifting away from cars to larger SUVs and trucks, resulting in a surplus inventory of the smaller vehicles,The Detroit News reported. The Detroit-Hamtramck plant builds the Chevrolet Volt, a plug-in electric car; the Cadillac CT6; the Chevrolet Impala; and Buick LaCrosse sedans.

Also Tuesday, Dearborn-based Ford Motor Co. announced plans to shutter a pickup truck and van plant in Kansas City, Missouri, for a week in early January to match production and demand, Reuters reported. The same plant closed for a week a couple of months ago.

The announcements by General Motors and Ford, the No. 1 and No. 2 U.S. automakers, could signal the auto industry is slowing after three consecutive years of record sales. IHS Automotive and other research firms predict sales could slide by more than 200,000 vehicles or more due to a variety of factors, including rising fuel prices and increasing interest rates.

Photo by Mark Goebel via Flickr Commons