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GM Plans Month-Long Shutdown at Flint Truck Plant

Plans are two weeks longer than usual.

by on Feb.19, 2018

GM is going to be laying off employees at its plant in Flint, Michigan, for two weeks after the company's traditional two-week shutdown.

General Motors told employees it plans to close down the company’s big truck assembly plant in Flint, Michigan, for the month of July.

The company said in a memo circulated to employees of the truck assembly plant that the plant will be closed for a “mandatory” two-summer vacation shutdown starting in early July. The two-week vacation shutdown will be followed by a two-week layoff for most of the employees at the plant, according to the memo, which was posted to a union website.

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The memo said some employees will be required to work during the temporary shutdown as the plant will be undergoing a series of improvements to the plant, which a key center for production of GM’s Chevrolet and GMC heavy-duty pick-up trucks.

GM is in the midst of changing over its pickup truck line, but the heavy-duty changeover isn’t expected to begin next year. However, GM, which was sitting on more than 90 days of unsold vehicles at the end January, is also trying to strike a balance between production and market that, while still strong, is expected to decline during 2018 as the Federal Reserve Board is expected to boost interest rates.

(Flint engine plant named new home for diesel engine. Click Here for the story.)

Analysts are also concerned about whether the overall market can absorb the more than 4 million vehicles that are expected to come off lease this year, which could depress the sales of new vehicles in the months to come.

Meanwhile, GM’s hourly workers are scheduled to collect profit sharing checks at the end of this week, averaging $11,750 from the company’s 2017 profits. General Motors profit sharing, established under the 2015 contract negotiations, recognizes that UAW GM members’ hard work is an essential part of General Motors sales and profits. UAW members at GM negotiated a “well-deserved share” in the profits of their hard work and sacrifice, UAW Vice President Cindy Estrada said recently.

(Click Here for more about Chevy’s plans to return to the heavy-duty pickup segment.)

Eligible retirees or a retiree who worked and had compensated hours in 2017 will receive their share next month on March 23, 2018, UAW officials said.

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