General Motors Co. will lay off 350 employees at two Lansing plants as a part of a previously announced $1.25 billion investment for Cadillac sedan production.
The layoffs at Lansing Grand River Assembly and Lansing Regional Stamping will take effect on Jan. 14, according to the Worker Adjustment and Retraining Notification posted by the state on Friday. The facilities will be retooled for future production, including the next-generation gas-powered Cadillac CT5. GM expects to call back employees after the changeover with some returning before the end of 2027.
Employees affected by the retooling may be eligible for opportunities at other GM facilities or supplemental unemployment pay equivalent to 74% of their hourly wage in accordance with the National GM-United Auto Workers contract, GM spokesperson Kevin Kelly said in a statement.
Lansing Grand River currently builds the Cadillac CT4 and CT5 sedans. GM announced the plans for a next-generation CT5 to be built at the plant in October. It previously had said in 2023 it would invest $1.25 billion for future electric vehicle production as a part of its contract with the UAW. The Detroit automaker even secured a $500 million grant in 2024 from the U.S. Energy Department to support the change.
But lower-than-expected EV sales have had automakers pivoting electrification plans. It’s unclear if GM still will build EVs at Lansing Grand River. The company previously also built the Chevrolet Camaro muscle car there. After its production ended in December 2023, GM laid off 369 employees at Lansing Grand River.
Crosstown rivals Ford Motor Co. and Jeep and Chrysler maker Stellantis NV have scrapped their own plans for a few EV models in response to affordability and demand concerns. A federal tax credit for plug-in vehicles ended at the end of September, plunging sales on certain EV models.
GM revealed a refreshed CT5 in 2023 at the North American International Auto Show, now known as the Detroit Auto Show.
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This article originally appeared on The Detroit News: GM announces layoffs for Lansing Grand River plant retooling
Reporting by Breana Noble, The Detroit News / The Detroit News
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By Breana Noble, The Detroit News | USA TODAY Network
