GM announces over 1,300 layoffs in Michigan amid EV conversion delays

Just a month after the end of the automotive sector strike, General Motors executives announced the layoff of more than 1,300 workers at two plants in Michigan after the Christmas holidays. The company justified the measure by citing the delay in the reconversion of said factories over to the manufacturing of electric cars, this is despite having received hundreds of millions of dollars from Governor, Gretchen Whitmer, precisely to expedite this process.

Most of the departures will occur at the Orion Township assembly plant, where 945 workers will lose their jobs starting January 1, 2024, due to the delay in adapting for the production of electric vehicles. In Lansing, the layoffs will be 369 , which will occur between January 1 and March of next year. The reason for this second closure is the end of production of the Chevrolet Camaro. The company assured that workers will be offered the possibility of relocation.

In October, GM CEO, Mary Barra, announced that the plan to begin manufacturing electric pickup trucks at the Orion plant would be delayed by a year, according to The New York Times. Barra justified this decision because this delay will allow the manufacturer "to make engineering and other changes that will make the trucks more efficient and less expensive to produce, and therefore more profitable." However, it also means the dismissal of all workers at this facility.

Also influencing the decision was the company's announcement that it is abandoning its stated goal of building 400,000 electric cars between 2022 and 2024 . The sale of electric cars is not taking off and Ford also halved its forecast for manufacturing electric-powered models in the coming months.

Whitmer pledged $824 million to secure 5,000 GM jobs

Last year, Governor Whitmer and GM signed an agreement in which Michigan contributed some $824 million in exchange for ensuring the vehicle manufacturer's investment of billions in jobs in the state. During the signing of the contract, Whitmer celebrated that "GM’s $7 billion investment in Michigan — the largest in their history — will create and retain 5,000 good-paying jobs and enable us to build on our legacy as the place that put the world on wheels." Something that appears won´t be fulfilled after 2024.

Michigan continues to boast of leading the transformation to electric mobility

Although this major economic setback for the Great Lakes State has the electrification of automobiles as one of the main causes, the state Department of Labor website continues to boast of leading the process of sustainable mobility.