General Motors’ (GM) announced Thursday that it will lay off some 1300 workers from its Michigan factory in Lansing as the company discontinues production of several popular vehicles. The move has been attributed to declining sales in the face of technology advancements, such as electric vehicles, taking center stage.
The Lansing Assembly plant is a more than 40-year-old facility that produces more than 500,000 vehicles annually, including top-selling models like the Chevrolet Traverse and GMC Acadia. The plant, however, is slated to discontinue production as GM shifts to more sustainable models.
Besides the 1300 employees directly impacted by the announcement, labor unions associated with the facility expect some 600 more job losses in the coming months. Workers were informed of the decision on Thursday, January 5th during a meeting with the company.
CEO Mary Barra has stated the purpose of the decision is “to position GM to win on the future of personal mobility”.
The move follows what is known as the “clean car revolution”, where automobile factories have been transitioning to more sustainable automobiles such as electric vehicles. This is expected to increase the competitiveness of automakers and remain relevant in an ever-changing market.
The company is offering the impacted employees severance packages and job-training opportunities to help find new career opportunities. GM has also opened up vacancies at other factories, providing affected workers more options.
Though remaining competitive in the market is essential for a company’s success, the decision was hard-hitting and had immediate effects on the families of the 1300 workers impacted. GM has since expressed its “sincerest appreciation” for their “long-time commitment and dedication”.