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GM cutbacks lead to loss of 1,200 Lansing jobs

January 26, 2009

General Motors Corp. announced Monday it would cut the second shift at its Lansing Delta Township assembly plant, resulting in 1,200 jobs lost. The plant, shown here the week of Nov. 13, 2008, is one of three Lansing plants that shut down production for the month of January to address a more than 20 percent drop in U.S. sales for the largest U.S. automaker.

Lansing — If Jim Caudy has any reason to be positive about the potential he could lose his job, it’s that he’s already started weighing his options. “I’ll probably be laid off fairly soon,” said Caudy, an MSU alumnus and electrician in General Motors Corp.’s Lansing Delta Township Assembly plant. “I’ve been looking at other options for about six months anyway. If it’s only a few months, I think I’ll be back. Everyone who has been laid off so far has been able to return.”

Caudy’s outlook turned all the more grim Monday after GM announced it would cut one of two shifts from the Lansing Delta plant, which is expected to result in a loss of 1,200 area jobs. The layoffs are effective March 30, said Heidi Magyar, a GM Lansing region spokeswoman.

Magyar said the national recession justified the company’s move, as did GM’s sales dropping about 23 percent in 2008.

“Vehicle sales remain dramatically depressed,” she said. “We felt the need to move from two shifts to one shift to meet the demand that’s there. It’s a very hard market out there right now, and we’re trying to respond to it as quickly and as best we can.”

Caudy said GM is adjusting to the economy.

“It’s all forecasting. We don’t know what is going to happen two months from now,” he said.

“It might be all right by then.”

Labor and industrial relations professor John Revitte said GM’s cuts are an unfortunate precaution the company had to take and isn’t restricted to Michigan automakers.

“It’s a very disappointing turn of events,” Revitte said. “I’m sure they hoped they wouldn’t have had to do this, but with sales the way they were it was probably inevitable.”

Revitte said the cuts will likely put an added strain on the local economy.

“(The auto industry) definitely won’t be the only ones struggling in the area,” he said. “Eventually, suppliers will most likely end up having to shut down factories or cut back operations.

“People in these situations will be much more likely to be careful with their money. The effects will slowly trickle out into the economy.”

GM’s announcement comes a week before employees at the Lansing Delta plant are scheduled to return to work from a shutdown for the month of January. The Lansing Delta plant makes the Buick Enclave, GMC Acadia and Saturn Outlook.

GM received $12 million from the Bush administration in December, and could receive another $6 billion if economic conditions worsen. While it sought help, the automaker presented Congress a viability plan highlighting its focus on fuel efficient vehicles, job cuts and a review of its eight brands, several of which could be cut.

Despite reports that Saturn could be one of the brands GM decides to shed, Magyar said the factory doesn’t expect additional cuts to the area.

“What they’re doing is reviewing all of the products we have,” she said. “They have four key brands that we are working with primarily, but they haven’t made any determinations as to the other brands.”

The brands the company will focus on are Buick, Cadillac, Chevrolet and GMC, Magyar said.

Lansing has three GM factories in the area and will employ around 3,000 people after the layoffs, Magyar said.

The Lansing Grand River Assembly, which makes the Cadillac CTS and SPS, also shut down for the month of January and will resume production Feb. 9. When the plant reopens, it too will operate on one shift, which was previously announced, Magyar said.

Caudy said he is fairly certain the company will have both lines back in the future.

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“I don’t see this being a long-term thing,” he said. “It’s a brand new factory, it’s a new state-of-the-art factory with good quality.”

Social relations and policy sophomore Matt Mamo, whose dad worked at a GM facility in Milford until late last year, said the layoffs are a move that was needed for GM.

“It’s a series of reduction moves by the company to help them get back to stable ground,” Mamo said.

“Hopefully, things start to look up soon.”

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