Alexander Alusheff

Lansing State Journal

LANSING - General Motors Co. will lay off as many as 1,100 people at its Lansing Delta Township Assembly plant when it cuts the plant's third shift in May.

The shift reduction will come as the plant phases out production of the first generation GMC Acadia in May, said Erin Davis, GM's Lansing spokeswoman, in a statement. The new generation is made in Spring Hill, Tennessee.

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

The plant makes the Chevrolet Traverse and Buick Enclave. GM chose the plant to make the new generation Traverse this year.

The statement also confirmed that the new generation Buick Enclave will be made at the plant as well. No further information was released on the new Enclave.

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"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.

The last day of the third shift will be May 12, Davis said. The plant will shut down from May to June to prepare for the launches of the new Traverse and Enclave. It will resume as a two-shift operation on June 12.

Bill Reed, president of UAW Local 602, which represents the hourly workers at the 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."

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.

"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 here."

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.

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 839 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, which has yet to be announced.

Lansing Mayor Virg Bernero said his heart goes out to families affected by the layoffs.

"At the same time," he said, "I remain bullish on GM’s long-term prospects and confident they will bring back all of their furloughed employees when market conditions warrant doing so."

GM, he noted, has invested more than a billion dollars in its Lansing facilities.

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.