UPDATE: APRIL 19,2018
An example of the ripple effect ...
As a consequence of the layoffs at the General Motor's plant, Lordstown Seating Systems, a local provider of car seating solutions, announced the layoffs of 83 employees.
Original Blog Entry ...
General Motors has announced that it will lay off up to 1,500 second shift workers at their Chevy Cruze Assembly Complex in their Lordstown, Ohio assembly plant.
According to a General Motors spokesperson, the decline in Cruze sales is directly responsible for the layoffs. GM can no longer simply ship additional cars to dealers – even at a discount – if consumer buying patterns shift and overall demand is reduced. It appears that consumer buying tastes are shifting toward trucks and SUVs. The 2019 version of the Cruze is on schedule to be launched later this year.
According to published reports, “March 2018 was the 11th consecutive month of sales declines for the Cruze. Last year, the plant lost its third shift and saw more than 10 weeks of downtime because of the trend away from small cars.”
Since the United Autoworkers acquired a chunk of General Motors ownership under an arrangement during the Obama administration, they appear to have a conflict of interest in maximizing profits and keeping their members gainfully employed.
Union leadership in Lordstown is changing as UAW local 1714 and UAW Local 1112 merged to compensate for declining membership as union members retire and to make it easier for GM to renegotiate the expiring 2019 contract rather than deal with two unions for employees at the same location. It is another reason for individuals to develop multiple independent sources of income and to be prepared for turbulent times.