Tomahawk, WI 11/12/2014 (Basicsmedia) – General Motors Company (NYSE:GM) has announced that it will be laying off staff at its Lansing Grand River Assembly plant as the company tries to bring down production to one shift. CNBC’s Phil Lebeau reports that the latest round of layoffs will affect 350 workers as the automaker tries to align its production capacity with market demand.
“Essentially they are curbing production of the Cadillac ATS and CTS. This is significant because the new president Johan de Nysschen of Cadillac has made a point that he is not going to flood the market if his vehicles are not selling. He would rather have a limited supply out there until he can expand the lineup,“ said Mr. LeBeau.
Beginning in January, General Motors Company (NYSE:GM) plans to operate one shift at the Lansing plant until production of the next generation Camaro begins. The automaker has not provided details on when it plans to begin production of the Camaro.
The layoffs come in the wake of Cadillac ATS and Cadillac CTS commanding poor demand in the market despite production being carried at full capacity.
“Since Cadillac has been struggling to a certain extent relative to the other luxury names they are going to curb production laying off 350 workers. Those workers may come back at some point in the future when they add a second shift for the next generation of the Camaro,“ said Mr. LeBeau.
Lansing Grand plant layoffs follows on the heels of an earlier announcement that General Motors Company (NYSE:GM) was laying off 160 employees at the lake Orion assembly plant. The layoffs at Lake Orion plant is to affect the production of Buick Verano and Chevrolet Sonic models that have been grappling with reduced demand in the market.
LeBeau maintains that the current round of layoffs is clear indication that General Motors Company (NYSE:GM) understands it can’t continue flooding the market if sales are not improving. A decline in gas prices has in one hand worked to GM’s disadvantage as more consumers make a rush for pickups and sport utility vehicles.