GM told the remaining workers at its sprawling plant in Lordstown Monday that it is going to shut down all U.S. production of the Chevy Cruze in March.
It鈥檚 part of an announcement that , including those at its Detroit-Hamtramck Assembly plant in Michigan and Ashawa Assembly in Ontario, Canada. Propulsion plants in Maryland and Michigan will also be 鈥渦nallocated,鈥 as a GM press release states.
The compact Cruze is the only vehicle built in Lordstown. Slowing sales led to the elimination of two shifts over the last two years and the layoffs of about 3,000 people. The remaining 1,500 people on the first shift had been dealing with uncertainty over the last year. In October, a spokesman for the company said GM remained committed to both the Cruze and continued sales of passenger cars overall.
Tom Wolikow, a United Auto Workers activist who was among the earlier layoffs, says the timing of Monday鈥檚 announcement was particularly brutal.
鈥淔or this to come right before Christmas time, it鈥檚 a slap in the face to us,鈥 Wolikow said. 鈥淩ight before Christmas. And four months (to prepare)?鈥
The announcement was made to employees at a Monday morning meeting. A GM spokesperson was not available to comment, but a press release says the company changes will result in cash saving of approximately $6 billion.
鈥淭oday, GM is continuing to take proactive steps to improve overall business performance including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce. These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis,鈥 the GM statement said.
Holding Out Hope
According to Wolikow, GM said it is looking for other product lines that could be moved to Lordstown, but there was no commitment made. Wolikow said the process of doing that could be slow even if it pans out.
When GM ended production of the Chevy Cobalt at Lordstown, it had already announced that the plant would be retooled for the Cruze.
Lordstown Mayor Arno Hill estimates his community could lose more than $1 million in income tax funds, but he says it鈥檚 a contingency they鈥檝e been planning for.
鈥淎s far as having to scramble right now, the village should be ok for the short term,鈥 Hill said at a press conference Monday. 鈥淟ong term we may have to look and make some adjustments, but we鈥檝e prepared for this.鈥
Hill added he鈥檚 not giving up hope for the plant.
鈥淭here's been too much work put in by the union, by management, by the village, by the state. This is a statewide issue. There are over 30 other companies which, I won鈥檛 say they totally depend on GM but they do supply GM, and the ripple effect is traumatic,鈥 Hill said.
UAW Local 1112 president David Green, who is spearheading a campaign called 鈥淒rive It Home鈥 to try to keep production going at Lordstown, said in a statement they will continue their grassroots effort to 鈥渕ake sure that American-made cars and trucks are made in America.鈥
鈥淎nd we are determined to do everything we can to convince General Motors to make Lordstown part of the future of auto manufacturing for this great company that we have been like family with for 52 years,鈥 Green said.
Green says he hasn鈥檛 heard the term 鈥渦nallocated鈥 to describe a plant鈥檚 status before.
鈥淚f we were in closed status, then this would be a different conversation,鈥 Green said. 鈥淪o I think there's hope for Lordstown and I want to make sure that if they got product out there, they want to go zero emissions, we can do that. Whatever they need, we can do that. We've got the best people and the best location in the world right here to build products.鈥
Still, Green said hearing Monday鈥檚 news 鈥渇elt like somebody kicked me in the stomach鈥.
President Trump: 鈥淲e don鈥檛 like it鈥
President Trump said Monday he had spoken to GM CEO Mary Barra.
鈥淚 was very tough. I spoke with her when I heard they were closing. And I said, 鈥榊ou know, this country鈥檚 done a lot for General Motors. You better get back in there soon. That鈥檚 Ohio and you better get back in there soon.鈥欌
He said GM informed him the Cruze is not selling well.
鈥淚 say, 鈥榃ell then get a car that is selling well and put it back in.鈥欌 Trump said.
He added he is 鈥渘ot happy鈥 about GM鈥檚 decision.
鈥淚 have no doubt that in a not too distant future they鈥檒l put something else, they better put something else in.鈥
鈥淏lack Monday鈥: Ohio Elected Officials React
Republican Senator Rob Portman said he was 鈥渄eeply frustrated鈥 with GM鈥檚 decision and disappointed with the way the Lordstown workers have been treated.
I will continue to do all I can to help the workers during this transition. For decades, workers in the Mahoning Valley have made a commitment to , & today GM let Northeast down.
— Rob Portman (@senrobportman)
Portman on Monday spoke to Dan Turton, GM鈥檚 Vice President of Public Policy and in a written statement said he 鈥減ressed GM again to provide new opportunities to the Lordstown workers.鈥
鈥淚 once again urged GM to make a commitment to bring a new product to the plant, especially since GM is proposing to build a number of new electric vehicles. In the short term, I urged GM to at least reallocate some of the production and employees to the Toledo GM plant,鈥 Portman said in his statement.
Democratic Senator Sherrod Brown called GM鈥檚 decision 鈥渃orporate greed at its worst鈥 and said the company does not respect its workers at Lordstown. He accused the auto company of benefiting from the GOP tax bill and 鈥渇ailed to invest that money in American jobs鈥.
鈥淕M owes the community answers on how the rest of the supply chain will be impacted and what consequences its disastrous decision will have on the Mahoning Valley and our state,鈥 Brown said.
Democratic Congressman Tim Ryan who represents the Mahoning Valley where the Lordstown plant is located said the region faces a new 鈥淏lack Monday鈥 adding that 鈥淕M has turned its back on us when we need them the most.鈥
He criticized President Trump for failing to keep his campaign promises to bring jobs back to the area.
鈥淭he Valley has been yearning for the Trump Administration to come here, roll up their sleeves and help us fight for this recovery. What we鈥檝e gotten instead are broken promises and petty tweets,鈥 Ryan said in a written statement.
So far, President Trump has been asleep at the switch and owes this community an explanation. We tried to get his attention on this issue two years ago. He promised us that his massive corporate tax cut would lead to dramatic reinvestments in our communities. (5/8)
— Congressman Tim Ryan (@RepTimRyan)
In an interview with ideastream, Ryan criticized the Trump administration鈥檚 plan to .
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鈥淭he president threw gas on the fire when he got rid of the CAFE standards 鈥 the fuel efficiency standards 鈥 that really helped these small car manufacturing facilities stay competitive and kept them in the game,鈥 Ryan said.
鈥淭here will not be a church, a neighborhood, a school district that won鈥檛 be affected by this in our region and that鈥檚 how deep the roots of GM Lordstown run in multiple counties, multiple states,鈥 he added.
GM opened the Lordstown plant in the late 1960s in the southwest corner of Trumbull County.
This is a developing story and we will continue to update it throughout the day.
This story has been updated with a statement from UAW Local 1112 president Dave Green on the Drive It Home Ohio campaign as well as statements from the mayor of Lordstown and Ohio elected officials.
This story has been updated to include comments from President Trump.