General Motors is slated to layoff 1,100 workers in May, but plans to rehire 500 of them next year. The auto giant said it is moving the production of the GMC Acadia mid-size SUV to Tennessee, which prompted the layoffs at the Lansing Delta Township plant in Michigan. The assembly line here will only produce two models of cars, but said that it will bring back 500 “to give the company flexibility to meet market demand” (via Reuters):
General Motors Co plans next year to rehire 500 Michigan assembly plant workers who are to be laid off in May, citing increased demand for larger vehicles, the company said on Wednesday.
The company said that when it begins full production of the new versions of the two models in 2018, it would "bring back approximately 500 jobs to give the company flexibility to meet market demand."
Last year, pickups and SUVs accounted for 59.5 percent of U.S. auto sales, up from 55.8 percent in 2015.
GM also said it would add 220 jobs at a plant in Romulus, Michigan, that is building 10-speed automatic transmissions, and it would retain 180 jobs by shifting Lansing workers to a Flint assembly plant to support pickup truck production.
The announcement came as U.S. President Donald Trump visited Michigan to announce his administration will review fuel efficiency standards, a move that could help automakers sell more larger models.