Alexander Alusheff

Lansing (Mich.) State Journal

LANSING, Mich. — General Motors Co. will lay off as many as 1,100 workers at its Lansing Delta Township Assembly plant when it phases out production of the first generation GMC Acadia in May.

Lansing Delta Township Assembly plant will lose its third shift and about a third of its workers as the automaker shifts production of the next generation of the SUV to Spring Hill, Tenn., Erin Davis, GM's Lansing spokeswoman, said in a statement.

The Michigan workers were given a 60-day notice of the layoffs Monday. The plant employs roughly 3,000 hourly workers and 250 salaried workers.

The plant also manufactures two crossover SUVs, the Chevrolet Traverse and Buick Enclave, which AutoTrader.com describes as "twins under the skin" even though their exteriors are vastly different and the Enclave is marketed with upscale styling and materials. GM (GM) chose the Lansing-area plant to make the new generation Traverse this year.

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Davis' statement also confirmed that the new generation Buick Enclave will be made at the plant as well.

"The new Buick Enclave and Chevrolet Traverse enter the market at a time when crossovers have become the most vibrant, dynamic and fast-growing models of the industry," Davis said in the statement.

In early February, GM announced it would build the 2018 Holden Acadia, the Australian version of the GMC Acadia, at its Spring Hill plant about 40 miles south of Nashville and quit making cars in Australia this year. The Spring Hill plant also operates under a United Auto Workers union contract.

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That plant opened in 1990 to manufacture Saturns but made the Chevrolet Traverse for a year in 2009 when the crossover debuted. Traverse production was shifted to the Lansing Delta Township Assembly plant for the 2010 model year.

Bill Reed, president of UAW Local 602, which represents the hourly workers at the Michigan plant, said the layoffs were expected.

"This was a major vehicle change," he said. "It was kind of expected this was going to happen. I believe it's going to be for a short time."

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Reed said the union has been advocating for a third product to replace the Acadia. Analysts predict that the plant could make a Cadillac crossover.

"I know (GM) wants to utilize the plant at full capacity," he said. GM has invested $583 million in the Lansing Delta Township plant since 2014 to prepare for new vehicle production.

Alex Hernandez is a UAW member who works first shift at the plant as a global customer auditor.

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"Of course I'm upset about losing third shift. These young people need their jobs," said Hernandez, who has worked for GM for 35 years. "The younger guys are concerned. Nobody wants to go down to two shifts. We want as many vehicles as we can get in that place."

GM stock briefly spiked before the New York Stock Exchange's open to $38.42 but has trended lower so far Monday, opening at $37.98 and falling 2.2% to $37.39 at mid-day.

GM sold 116,701 Traverses last year, a 2.7% decrease from 2015. The Enclave sold 52,028 units last year, a 16% decrease from 2015.

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In January, GM cut the third shift at Lansing Grand River Assembly as car sales declined and the popularity of trucks and SUVs increased. Initially, up to as many as 832 people could have been laid off at the plant. Davis said the final number was 500.

GM is investing $211 million at the Lansing Grand River 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 that has yet to be announced.

Contributing: Lizzy Alfs, The Tennessean. Follow Alexander Alusheff on Twitter: @alexalusheff