GM Allocates US$1.2 billion to Plants in Lansing, Michigan

General Motors (GM) will invest US$1.2 billion to reconfigure the two plants it operates in Lansing, Michigan, with a view to producing a new sedan for its Cadillac luxury division, according to reports from the local press.

Unfortunately, the move will result in the layoff of 350 employees starting January 14 of next year, as the Detroit-based giant notified state labor authorities.

The remodeling work will take place at the Lansing Grand River assembly plant, as well as at the Lansing Regional Stamping facility located at the Lansing Delta assembly plant.

The preparations are aimed at launching a new production program for three models, including the seventh-generation Chevrolet Camaro, along with the new Cadillac CT5 and a Buick sedan, the name of which is still unknown.

“Affected employees may be eligible for opportunities at other GM facilities or to receive supplemental unemployment benefits equal to 74% of their hourly wage, in accordance with the GM-UAW national contract,” GM stated.

Affected employees are expected to be rehired once the plant’s restructuring is complete, which could happen even before the end of the year.