Alexander Alusheff

Lansing State Journal

LANSING - General Motors' Lansing Grand River Assembly plant will lay off more than 800 workers when it cuts the plant's third shift in January.

The reason for the layoffs is a decline in demand for cars as customers continue to favor trucks and crossovers, said Erin Davis, GM's Lansing spokeswoman. Lansing Grand River makes the Chevrolet Camaro, Cadillac ATS and Cadillac CTS.

"We need to continue to meet demand," Davis said."It's an unnerving situation. It's a tough choice. But we're doing the right thing by not overproducing."

The plant, located at 920 Townsend St., employs 2,700 people. The layoffs include 29 salaried workers and 810 hourly workers, 300 of whom are temporary, Davis said.

Across the company, GM is laying off 2,000 workers because of declining car sales.

GM is required to give employees 60 days' notice prior to mass layoffs. The number of layoffs could fluctuate depending on how many people decide to retire or leave the company prior to layoffs, Davis said.

Mike Green, president of UAW Local 652, doesn't believe the final numbers will be that high. He said over the next few weeks, the UAW's bargaining unit will work out how much manpower is needed.

"We'll get through it like we always have," he said.

The plant launched a third shift to meet growing demand for the Camaro in April 2015, hiring 500 people. It was the first time the plant was fully utilized since being built in 2001.

Camaro sales have decreased across the board by 9% from January to October of this year. Cadillac ATS and CTS sales have plummeted in that time frame by 17.1% and 16.7%, respectively, according to GM's delivery statistics for October.

The announcement is coupled with good news, however.

GM plans to invest $211 million at the plant for new tooling and equipment as well as a 32,000-square-foot expansion of its body shop. The investment is for a future product, which Davis declined to comment on. The plant is one of three in which GM is investing a total of $900 million. The other two are in Toledo, Ohio, and Bedford, Indiana.

"We aren't clearing out the plant," she said. "We will continue to produce Cadillacs and Camaros."

Green said that news is positive for the future of the plant.

"It opens us up for different production and makes us more viable," he said. "Things are slow right now, but, when they ramp back up, it will be good."

Alexander Alusheff is a reporter at the Lansing State Journal. Contact him at (517) 388-5973 or aalusheff@lsj.com. Follow him on Twitter @alexalusheff.