The Detroit area is one of five in North America that GM announced last year would discontinue operations as part of the company's business transformation. GM plans to build fewer sedans as customers demand more trucks and SUVs. It also wants to transform is the business to eventually build more electric vehicles, while saving $ 6 billion annually from the end of 2019.
The Warren plant opened in 1941 and has been operated by GM ( GM )
since 1958. It produces six-speed transmissions for Cadillac XTS and Chevrolet Impala ̵
1; both models that GM interrupts. GM largely replaces that type of transfer with more advanced versions.
GM thanked the factory's approximately 200 employees in a statement.
"We appreciate their dedication and hard work to build the highest possible quality in every transmission produced by Warren Transmission Operations," said GM.
The company said that 60 workers have transferred to other factories in the United States and that 25 workers are retiring.
GM describes the plant as "not assigned", which means the plant is not completely shut down for now. Instead, it no longer produces anything else when done with the current transfer line. The future of the plant depends on the ongoing negotiations between GM and UAW Union.
"We have work opportunities for virtually all employees per hour at the affected plants, provided they are willing to relocate," it states.
As part of GM's modernization plan, the company is reducing its payroll power by 15%, including non-factory workers. The transition will come at the expense of around 8,000 salaried employees, and 6,000 hourly workers will either lose their jobs or be redeployed to other facilities. GM has previously offered voluntary acquisitions for 18,000 salaried employees.