General Motors, the nation's largest automaker, is phasing out production of its first generation GMC Acadia SUV at its Lansing, Michigan plant, forcing cuts to the third shift in May. The Lansing plant will continue to make the Buick Enclave and Chevrolet Traverse, according to Reuters.
GM added 800 jobs last year at its Spring Hill, Tennessee plant where its new generation GMC Acadia SUV is being produced. GM has announced some other factory cuts
in the past few months, even after it said it would invest $1.0 billion in the U.S. economy in January.
Employees at the Lansing plant were notified of the production change and layoffs Monday morning. The affected employees were given a 60-day notice. The plant employees roughly 3,200 hourly workers and 250 salaried workers.
The Lansing plant was chosen to make the new generation Buick Enclave and Chevrolet Traverse and "they are entering the market at a time when crossovers have become the most vibrant, dynamic and fast-growing models of the industry," said Erin Davis, GM's Lansing spokeswoman, in a statement, reports the Detroit Free Press.
Bill Reed, president of UAW Local 602 that represents the hourly workers, said the layoffs were expected. "This was a major vehicle change," he said. "It was kind of expected this was going to happen. I believe it's going to be for a short time."