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GM to Fire 1,500 Ohio Workers

Passenger car sales are slumping. In response automakers are laying off workers at sedan-producing factories.

General Motors Co. will fire as many as 1,500 workers at the end of June at the Ohio factory building the Chevrolet Cruze compact car, undercutting President Donald Trump’s bombast about bringing back auto jobs.

The Lordstown assembly plant will operate on only one shift as part of the cutback, spokeswoman Dayna Hart said in an email. The company will be roughly halving the workforce at the factory, though Hart wrote that it’ll remain open for the foreseeable future.

“Lordstown is among the few remaining builders of small cars in the U.S. and it is our plan to keep it that way,” she said. “GM recently stated our commitment to sedans and the role Cruze plays in that commitment.”

GM’s plans for its Ohio factory are the result of American consumers snubbing cars in favor of crossovers. Cruze sales plunged 26 percent in the first three months of the year to less than 40,000 units and slipped 2.2 percent last year. Automakers have been laying off workers in passenger-car plants as roomier sport utility vehicles have seized record share of industrywide deliveries.

Trump Statement

“We’re turning it around,” Trump said Thursday from the White House Rose Garden. “Already, Chrysler is coming back with auto plants. Many companies are now in Michigan, Ohio, different places, Pennsylvania. They’re building beautiful, brand new auto plants. Nobody thought they’d ever see that happen.”

Not quite. And although the love affair is with SUVs total sales have peaked.

Mike "Mish' Shedlock

You can make business climate favorable for automakers. Its up to them to make a care someone wants........duh. I watched the auto industry demise from early 70s, thru 80s, 90s, to present. When I still say I wouldnt consider an american made car...its because I wouldnt ...consider...an ...american....made...car.

Trucks...different story. And only because repair of Toyota is prohibitively expensive long term.

No, he did not Trump caved to images he saw on TV. The truth is that Trump responds on gut feel. There is no Trump doctrine and for some reason the images about Syria hit Trump in his gut

Not only Detroit: US regs killed off imports of many sports cars, which put them out of business (Austin-Healey for example).

I think this has more to do with the Chevy Cruz being a crappy car than any statement about the US auto industry.

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