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John Goreham Contributing Writer, GM-Trucks.com 6-12-2018 General Motors is scaling back the production of its sedans to match the declining sales the company has been seeing for those models. One example is the Lordstown, Ohio production facility that builds the Chevrolet Cruze. Last year the Lordstown plant had about 4,000 workers building the sedan. That count will be reduced to about 1,500 after the latest buyouts. The plant first eliminated the third shift. That reduced the jobs in the plant by about 1,000. Now GM is planning further cuts to eliminate the second shift. To encourage workers to quit, rather than be laid off, GM is offering workers a financial incentive to move on to other work or to retire. Local news affiliate WFMJ reports that those workers who qualify for and accept an early retirement will receive a $60,000 incentive payment. Workers who opt to quit their union job will receive a buyout of between $50,000 and $5,000 depending upon their length of service with the company. With unemployment near historic lows in America, 3.7% as of the last report, 4.0% in Ohio overall, this would seem to be the best of times to be making the difficult transition to new work. In Trumbull County Ohio, where Lordstown is located, the unemployment rate is higher than the national average at 5.5%. However, one neighboring county, Geauga County, has a 3.8% rate. Local employment groups are stepping up to help out. Last year, the Youngstown/Warren Regional Chamber provided a list of companies in the area that were hiring to GM and United Auto Workers. “We would certainly be pleased to offer that service [again],” said Sarah Boyarko, the chamber’s senior vice president of economic development. “I think there are employment opportunities for these folks when they go through that separation, and oftentimes, it’s a matter of knowing where to go.” Year to date sales of the Chevy Cruze were down 26% year over year when reported by GM in March. The Cruze competes with cars like the Honda Civic line and the Toyota Corolla line. This month, Toyota released an all-new Toyota Corolla Hatchback. Its gasoline engine is expected to be rated at 36 MPG combined, higher than the current Cruze diesel hatchback. It is also expected to be quicker and will have more standard safety features included than the Cruze. Related Stories: GM Announces Factory Location For Self-Driving Vehicle Production GM Will Add 700 Jobs To Crossover Plant in Tenn. - Partly To Build Vehicles For Export - Guess Where To GM Picks Kansas, Rather Than China, For Next Premium Crossover FCA Moving Ram HD Production From Mexico to Warren Michigan Canadian GM Strike Over - Guess Who Won?
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Zane Merva Executive Editor, GM-Trucks.com 4/13/18 The Chevrolet Cruze is not selling well. Sales of the model are down 28% this year, leading the industry average drop of 13.2%. As a result, the Lordstown, Ohio factory that produces the Cruze is cutting a shift... and losing jobs. Earlier today plant leaders let factory workers know about the changes and the several hundred jobs that would be lost. The Cruze once sold 273,000 copies a year but has recently slowed along with other US sedan sales. In 2017 Chevrolet only moved 184,000 of the small sedans. Meanwhile, crossovers and suv sales are holding steady or growing. A recent IHS report pegs that 66.9% of crossover and suv owners buy another crossover or suv. Are sedans about to die once and for all? Or will the slump rebound? Only time will tell. What do you think? Source: CNBC
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