Four months ago, Orion’s GM assembly plant, which makes the popular Chevrolet Malibu and Pontiac G6, announced they were adding a third shift.
So much has changed in such a short amount of time.
A few weeks ago, 650 employees were laid off.
Now, as all three of Detroit’s beleaguered automakers take heat in Washington while seeking funds to continue operating, GM announced Friday the third shift would also go.
According to the plant’s Communications Manager Becki Akers-Hopson, the cut impacts 390 more employees, bringing the grand tally of layoffs at the Orion plant to 1,200, all effective Feb. 1.
‘This is a difficult time for everyone, but unfortunately the market conditions we’re now experiencing are unprecedented,? AKers-Hopson said. ‘As a result, it is necessary for GM to take these tough steps to scale back its production to meet shrinking market demand and to ensure the long-term future of the company and the jobs for countless other employees.?
The cuts reflect the deep decline in auto sales that has forced GM and the other carmakers to request federal funds.
In GM’s case, the loans are necessary to keep them from bankruptcy.
‘A government loan would provide GM with a financial bridge until the U.S. economy and auto sales return to modestly healthy levels,? said Akers-Hopson. ‘This will allow us to keep operating and GM to complete its restructuring?
Akers-Hopson said sales were drastically down once again in November. The entire industry was found sales 37 percent lower compared with November of last year.
GM was down 41 percent.
‘Tight credit markets, the struggling economy and record-low consumer confidence have driven U. S. industry sales to their lowest per-capita level in a half of a century. Overall, the industry this year is projected to be down on an annual selling basis more than three million units as compared to 2006,? Akers-Hopson said.
Still, there are no immediate plans to close the Orion plant, Akers-Hopson added.
In fact, sales for the Malibus manufactured at the Orion plant are up 39 percent. Sales for the G6 are down only .3 percent.
Akers-Hopson said these figures still need to be put into perspective.
‘While sales year-over-year are favorable, sales for the higher volume Malibu have declined 50 percent when you compare November sales to September sales just two months ago,? she said.