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General Motors Laying Off 510 Workers

Drop in small car demand due to low gas prices forces cuts.

by on Nov.12, 2014

GM is laying off 350 workers at its Lansing Grand River plant in Lansing, Mich. However, they may be recalled when Camaro production is moved there next year.

The low gas prices that have benefitted sales of full-size pickups and SUVs has also cut demand for small cars and as a result forced General Motors to lay off 510 hourly workers at two plants in Michigan that produce small cars.

The average price for a gallon of gasoline is now $2.923 cents per gallon, according to the AAA Daily Fuel Gage as the price of gasoline dropped by almost a penny. Last month, Americans were paying $3.208 cents per gallon. The prices are part of the reason buyers are finding their way back to trucks, crossovers and SUVs, which is resulting in more production capability than demand at the sites.

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The automaker is laying off 350 employees at its Lansing Grand River Assembly facility in January and 160 more at its Orion Assembly plant. The two sites produce a variety of small cars, including Cadillac ATS and CTS in Lansing and the Buick Verano and Chevy Sonic in Orion. (more…)

Federal Money Off-Limits for Fiat, Says Nardelli

Another sweeping buying underway at Chrysler.

by on Feb.02, 2009

Chrysler CEO Bob Nardelli: "Hands off, Fiat"

Chrysler CEO Bob Nardelli: "Hands off, Fiat"

Fiat won’t be able to touch any of the “bailout” loan money provided by the U.S. government if it decides to move forward with its alliance with Chrysler LLC, says Chrysler Chairman Robert Nardelli.

In addition, Chrysler also said it is going ahead with a sweeping buyout of hourly workers at the company’s throughout its manufacturing system, which now has about 34,000 employees.

“Given the difficult economic and market conditions in the U.S., Chrysler LLC determined in December 2008 that it would offer another phase of its ‘Special Programs,’” said a company spokeswoman, adding that, “The original window to offer the programs was slated to begin in December and run into January, per an agreement with the UAW. Due to the fact that many of the company’s facilities had suspended production for extended periods in December and January, the program offerings are being rolled out now.”

Workers have until Feb. 25 to decided whether to accept the buyouts, which would provide up to $75,000 in cash and $25,000 to buy a vehicle to those who leave the company without retiring. The incentive for early retirement is $50,000 cash and a $25,000 voucher.

The latest program follows another buyout, in November, that saw some 5,000 salaried employees – or 25 percent of Chrysler’s white-collar workforce – agree to leave the company.