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GM laying off 500 workers to slow Chevy Sonic production

Due to slow sales of the Chevrolet Sonic and Buick Verano, General Motors is cutting a shift at the Orion Township plant that builds the pair. The move lays off about 500 workers, but most of them are expected to get offers to transfer to other factories, Automotive News reports. The move came just a day after GM announced adding 1,200 employees to the Detroit-Hamtramck plant. GM has been trying all year at the Orion Township factory to align production of the Sonic and Verano with their demand. The automaker first attempted idling the plant several times and eventually resorted to laying off about 100 workers. It also reduced the production rate there. With the huge rise in popularity of crossovers, demand for the plant's small cars is on the downturn. According to Automotive News, there's currently a 116-day supply of Sonics and 100 days of Veranos to sell. Delivers tell a similar tale because the Chevy is off 35.2 percent from January to September, and the Buick does little better with a 27.2 percent drop from the same period last year. While the situation at Orion Township might look rough now, big things are on the horizon. Soon, the new Chevy Bolt electric vehicle will be built there when it hits the market around 2017. Plus, the plant will also get a $245-million upgrade and 300 new jobs for another, unannounced vehicle.

GM might outsource vans to AM General

General Motors will possibly boost production of the Chevrolet Colorado and GMC Canyon at the Wentzville Assembly Plant in Missouri by contracting out some commercial van manufacturing to AM General. Demand for the two midsize trucks continues to boom, and GM would like to take advantage of the strong market for them. The possible deal came to light in a letter to workers at the factory, according to Automotive News. "This potential partnership would free up production capacity and allow the organization to capitalize on our ability to build midsize trucks to further satisfy customer demand," a portion of the document allegedly said. AM General would reportedly only take over assembly of the cutaway versions of the Chevy Express and GMC Savana. Customers and critics have quickly embraced the latest Colorado and Canyon since their introduction. The Chevy just won back-to-back Motor Trend Truck of the Year awards. GM also had to add a third shift and extra workers in 2014 just to keep up with demand. The Wentzville plant even increased employment on the weekends earlier in 2015 to assemble an extra 2,000 of the trucks each month. While the two pickups boom, deliveries for the Chevy Express and GMC Savana are down 26.9 percent and 26.6 percent respectively through the first 10 months of the year. GM doesn't break out numbers for the cutaway versions, but they make up about a third of production, according to Automotive News. AM General built the Humvee for the US military and does some contract work with automakers. For example, the company's Indiana factory now produces the Mercedes-Benz R-Class for export to China. Here's hoping this potential deal will help both GM and AM General keep their factories humming. Related Video:

GM pickup truck plant in Flint to add 1,000 assembly workers

FLINT, Mich. — General Motors said Tuesday it will add 1,000 workers to build new heavy-duty pickup trucks at its plant in Flint, Michigan, and will give priority to GM workers who were laid off elsewhere. The announcement comes the day after GM said it was starting to hand pink slips to about 4,000 salaried workers in the latest round of a restructuring announced in late November that will ultimately shrink its white-collar workforce in North America by 15 percent out of 54,000. GM has come under fire from U.S. President Donald Trump and Midwestern lawmakers for its plans to stop production at five North American factories and cut up to 15,000 jobs in all. The automaker has said it is trying to find new jobs for 1,500 U.S. hourly workers at the affected plants. Flint's truck plant could be a haven for many of these employees. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM on Tuesday will celebrate the launch of a new generation of heavy-duty GMC and Chevrolet pickups at the assembly plant in Flint, Michigan, that is now building all such trucks for the company. Elsewhere in the company on Monday, two people briefed on the cuts in the white-collar salaried workforce said GM is cutting hundreds of jobs at its information technology centers in Texas, Georgia, Arizona and Michigan and more than 1,000 jobs at its Warren, Michigan Tech Center. GM is filing new required mass layoff notices with state agencies and disclosed the cuts to lawmakers. The largest U.S. automaker announced in November it would cut a total of about 15,000 jobs and end production at five North American plants. The cuts include eliminating about 8,000 salaried workers, or about 15 percent. GM cut about 1,500 contract workers in December and said 2,300 salaried workers accepted buyouts, officials said. "These actions are necessary to secure the future of the company, including preserving thousands of jobs in the U.S. and globally. We are taking action now while the overall economy and job market are strong, increasing the ability of impacted employees to continue to advance in their careers, should they choose to do so," GM spokesman Pat Morrissey said, adding the bulk of the cuts should be completed in the next two weeks. Morrissey said GM would provide salaried workers with severance packages and job placement services.