General Motors will lay off 2,000 employees at two car plants in the US Midwest, the latest sign that the US car industry is suffering from softening demand, especially for some smaller models. GM said in a statement on Wednesday that it will cut the third production shift at plants in Lordstown, Ohio and Lansing, Michigan early next year. These plants build some of the slower-selling small car models in the GM stable at a time when demand for trucks and sport utility vehicles continues to be strong.
The announcement, made on the morning after Donald Trump’s stunning victory in the US presidential election, did not appear to be election-related. Other US carmakers, including GM’s rival Ford, have recently announced production cutbacks in response to falling demand as the US car market hits its peak after seven years of rapid post-recession growth. The Lansing Grand River plants makes Cadillac ATS and CTS models as well as the Chevrolet Camaro, while the Lordstown facility produces Chevrolet Cruz sedans. While reducing the shifts will affect 1,243 and 840 hourly and salaried workers, respectively, GM said it will invest $900m in three of its plants, including Lansing Grand River, to prepare for future product programmes.