General Motors Is Cutting 500 Jobs In Detroit Area

GM Plant

General Motors is cutting 500 workers at a plant near Detroit, Michigan. The factory is responsible for manufacturing “weak-selling small cars,” according to the company.

The downsizing arrives one day after GM said it would eliminate 1,200 jobs from its Detroit-Hamtramck plant.

According to GM the Lake Orion plant near Detroit will end its production by early next year, and the new shift at the Detroit-Hamtramck plant will begin in the first quarter.

In some good news for the workers, the company says most jobs will be transferable to the Detroit-Hamtramck plant.

The Lake Orion plant produces the Buick Verano sedan and the Chevrolet Sonic. Verano sales are down 27% in 2015 and Sonic sales have decreased by 35% in the same time period.

In the meantime, GM sales of SUVs and pickup trucks have increased thanks in large part to low gas prices, and an improving economy.

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The Lake Orion plant will eventually produce the GM Bolt, an electric small car. It will also eventually produce a not-yet-named product.

GM is investing $245 million in the Lake Orion plant.