General Motors announces lay off of 2,000 workers in Ohio and Michigan

RT
Thu, 10 Nov 2016 11:27 UTC

© Mike Stone / Reuters

Automobile manufacturer General Motors has announced plans to lay off 2,000 employees at two auto plants in Ohio and Michigan. The employees will be furloughed in January.

General Motors (GM) announced Wednesday that it would be letting go 2,000 employees in the Midwest as the result of what they believe is a continued shift from small cars to crossovers and trucks. The plants affected by the layoffs build cars for Chevrolet and Cadillac, Fortune reported.

Both factories will be losing their third shift in January. However, GM will be investing $211 million in the Lansing Grand River facility in Michigan for a new vehicle that still remains a mystery.

GM will also invest $667.6 million in a different Ohio facility. The Toledo Transmission facility will be able to keep 739 jobs with the investment. An additional $37 million is going to the Bedford Casting Operations in Indiana, where 45 workers will be able to keep their jobs as a result, the Detroit News reported.

GM has stated that it is committed to keeping small car production in the US. However, they have invested $5 billion in Mexico with little information available about what kind of vehicle they will build there.

Comment: Americans are borrowing more than ever for new and used vehicles, and 30- and 60-day delinquency rates rose in the second quarter, according to the automotive arm of one of the nation's largest credit bureaus.

The total balance of all outstanding auto loans reached $1.027 trillion between April 1 and June 30, the second consecutive quarter that it surpassed the $1-trillion mark, reports Experian Automotive.

See also: U.S. economic recovery? The one trillion dollar consumer auto loan bubble is beginning to burst