Tag Archives: General Motors

GM will rehire 500 Michigan workers slated for layoffs

The GM logo is seen in Warren, Michigan, U.S. on October 26, 2015. REUTERS/Rebecca Cook/File Photo

By David Shepardson

WASHINGTON (Reuters) – General Motors Co plans next year to rehire 500 Michigan assembly plant workers who are to be laid off in May, citing increased demand for larger vehicles, the company said on Wednesday.

GM said last week it planned to lay off 1,100 workers in May at its Lansing Delta Township assembly plant in Michigan. The company is moving production of the GMC Acadia mid-size SUV to Spring Hill, Tennessee, from the factory, which will build just two models, the Chevrolet Traverse and Buick Enclave SUVs.

The company said that when it begins full production of the new versions of the two models in 2018, it would “bring back approximately 500 jobs to give the company flexibility to meet market demand.”

GM also said it would add 220 jobs at a plant in Romulus, Michigan, that is building 10-speed automatic transmissions, and it would retain 180 jobs by shifting Lansing workers to a Flint assembly plant to support pickup truck production.

The news comes as U.S. President Donald Trump is set to visit Michigan later on Wednesday to announce that his administration will reopen a review of fuel efficiency standards, a move that could help automakers sell more of their larger models. GM did not credit Trump with the decision to add jobs.

“We haven’t fundamentally changed any of our plans, but we continue to look for ways to improve our operations and find ways to help the country, grow jobs and support economic growth,” spokesman Pat Morrissey said.

He said Trump’s visit “gave us a positive venue to share good news for the state of Michigan – and specifically for our plants and people in Flint, Romulus and Lansing.”

The Detroit automaker in recent months has announced other U.S. job cuts and new investments. GM said in January it would invest another $1 billion in its U.S. factories.

Trump has urged GM and other automakers to build more cars in the United States as part of his pledge to boost the nation’s manufacturing jobs and discourage the industry from investing in Mexico.

GM said in November it would cut about 2,000 jobs when it ended the third shift at its Lordstown, Ohio, and Lansing Grand River plants in January. In December, it said it planned to cancel the second shift and cut nearly 1,300 jobs from its Detroit-Hamtramck assembly plant in March.

(Reporting by David Shepardson; Editing by Lisa Von Ahn)

General Motors says to invest additional $1 billion in U.S.

The GM logo is seen at the General Motors Warren Transmission Operations Plant i

By David Shepardson

WASHINGTON (Reuters) – General Motors Co confirmed on Tuesday it would invest an additional $1 billion in its U.S. factories in 2017 and will move some parts production from Mexico to the United States that was previously handled by a supplier.

The investments are in addition to the $2.9 billion the automaker announced last year, GM said.

GM and other automakers have been sharply criticized by U.S. President-elect Donald Trump for building vehicles in Mexico that are imported into the United States. Trump will be sworn in on Friday.

GM said the $1 billion investment will create or retain 1,500 jobs. The Detroit automaker said details of individual projects will be announced throughout the year.

GM also said it would begin work on bringing axle production for its next generation full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 U.S. jobs.

The part was previously built by American Axle Manufacturing Holdings Inc.  American Axle did not immediately respond to a request for comment.

GM spokeswoman Joanne Krell said the automaker planned to add 7,000 new U.S. jobs over the next two to three years. Krell said the decisions being in the announced “had been in the works for some time” but she added “the timing was good for us to share what we are doing.”

The 7,000 figure includes the 450 jobs on axle production, 1,500 jobs tied to the $1 billion announcement and more than 5,000 new jobs tied to engineering, GM Financial and advanced technology.

GM shares rose in early trading, up 0.7 percent or $0.26 per share to $37.60.

‘BIG STUFF’

Trump, who made bringing back manufacturing to the United States a large part of his successful election campaign, did not directly mention GM on Tuesday but touted recent automaker investments in the United States.

“With all of the jobs I am bringing back into the U.S. (even before taking office), with all of the new auto plants coming back into our country and with the massive cost reductions I have negotiated on military purchases and more, I believe the people are seeing ‘big stuff,'” he wrote in a pair of tweets.

Trump has been inaccurate in describing some U.S. auto investments, wrongly saying last week that Fiat Chrysler was planning to build a new factory in the United States. The company announced it is investing $1 billion in two existing plants, adding 2,000 jobs.

On Jan. 3, Trump threatened to impose a “big border tax” on GM for making some of its Chevrolet Cruze compacts in Mexico – and he has extended that threat to German automakers like BMW and Toyota Motor Corp over building vehicles abroad.

GM also said an unnamed supplier has committed to make components for GM’s next-generation full size pick-up trucks in Michigan, moving 100 supplier jobs from Mexico to the United States.

But even as GM invests in U.S. plants, it has also been making job cuts. In recent months, the company announced plans to lay off about 3,300 employees at three factories.

It said in November it would cut about 2,000 jobs when it ends the third shift at its Lordstown, Ohio and Lansing, Michigan plants in January. Last month it said it planned to cancel the second shift and cut nearly 1,300 jobs from its Detroit-Hamtramck assembly plant in March.

GM’s “general plan is to build where we sell and we’re focused on what we’re doing in the United States,” Chief Executive Mary Barra said in an interview with Reuters on Monday.

Barra, who said she planned to attend Trump’s inauguration, said GM wants to work with him, adding, “I do believe we have more in common than we have areas that we aren’t aligned.”

(Reporting by David Shepardson in Washington and Ankit Ajmera in Bengaluru; Editing by Ted Kerr and Frances Kerry)

Wal-Mart to create 10,000 U.S. jobs in 2017

A general view shows a Wal-Mart store in Monterrey, Mexico,

(Reuters) – Wal-Mart Stores said it would create about 10,000 jobs in the United States this year, adding to its near 1.5 million workforce in the country, by opening or remodeling stores and investing in its e-commerce business.

The number of jobs being created is consistent with previous years, said Lorenzo Lopez, a spokesman for Wal-Mart, the largest U.S. retailer and private employer.

Several U.S. companies, particularly automakers, have announced plans to create jobs in the United States since the U.S. election victory of Donald Trump.

Trump, who takes office on Jan. 20, has repeatedly singled out and criticized companies across industries for not doing more to keep jobs in the United States.

General Motors Co will announce as early as Tuesday long-held plans to invest about $1 billion in its U.S. factories, a person briefed on the matter told Reuters.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D’Souza)

G.M. recalls 1.04 million newer trucks

The GM logo is seen at the General Motors Lansing Grand River Assembly Plan

WASHINGTON (Reuters) – General Motors Co said Friday it is recalling nearly 1.04 million newer pickup trucks for a seat belt flaw.

The largest U.S. automaker said the recall of the 2014-15 Chevrolet Silverado and GMC Sierra 1500 pickups is not linked to any crashes or injuries. GM said the cost of the large recall “is not expected to be significant and is covered within normal and customary warranty reserves.”

GM said the recall in the United States includes 895,232 vehicles and a stop-sale of approximately 3,000 new 2014 and 2015 model year pickups still on dealer lots.

GM said the recall was prompted by warranty data that showed the flexible steel cable that connects the seat belt to the vehicle can separate over time as a result of the driver repeatedly bending the cable when entering the seat.

Dealers will enlarge the side shield opening, install a bracket on the tensioner, and if necessary, replace the tensioner assembly.

The recall includes about 142,000 vehicles outside the United States.

(Reporting by David Shepardson; Editing by Chizu Nomiyama and Nick Zieminski)

Watchdog Group Says GM Misleading Government On Faulty Car Deaths

A watchdog group is calling out General Motors for under reporting the number of deaths connected to faulty ignition systems.

The Center for Auto Safety say that over 300 people have died in GM cars where the airbags did not deploy compared to the 12 that GM reported to federal investigators.

“Without rigorous analysis, it is pure speculation to attempt to draw any meaningful conclusions,” the company said in a statement refuting the group’s claim. “In contrast, research is underway at GM and the investigation of the ignition switch recall and the impact of the defective switch is ongoing.”

Still, the company has hired outside investigators to look into the recall.

The Center for Auto Safety is taking the National Highway Transportation Safety Administration to task, saying they were negligent in following up on reports of accidents attributed to the GM system.

“The only way NHTSA could not see a defect trend is if it closed its eyes,” said the group in a letter to the NHTSA.