General Motors Corp. will lay off most of the more than 1,000 workers at its Linden, New Jersey, assembly plant early next year, months ahead of its original plans to stop making two vehicles there, a company spokesman told the Associated Press (AP).
GM is in the process of notifying employees and union officials about the planned layoffs, which is required under federal law, spokesman Dan Flores told AP.
The news agency noted that GM had initially planned to end production of the Chevrolet Blazer and GMC Jimmy next summer due to slowing sales of the two sport-utility vehicles – Linden has assembled the two vehicles since 1995.
The layoffs will affect most of the approximately 900 to 950 hourly workers and 110 salaried employees at the plant, Flores told AP.
AP noted that decreasing sales of the two vehicles have led to frequent shutdowns at the plant. GM cut the second shift at Linden two years ago, leading to about 1,000 layoffs.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“GM, like any other company, is driven by the marketplace and we’re faced with the fact that there really isn’t a market for the products any more,” Flores told AP, adding that GM would seek to find other positions at the company for salaried employees at Linden. Hourly workers would be protected under terms of their contract with United Auto Workers Local 595.
Flores reportedly said the Linden plant would not close completely, but said the company has no plans to assign any additional production to the plant, and was not studying any investment that would introduce any other products there.
In September 2003, GM and the national United Auto Workers union reached an agreement to keep the plant – the last vehicle assembly plant in New Jersey – open until 2007, the Associated Press noted.