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.

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.