WILX news in Lansing is reporting that two Lansing area car plants are being scaled down in response to the ongoing budget woes of General Motors. UAW Local 602 president Brian Fredline tells WILX’s Lauren Zakalik that a new GM plant that recently opened in Lansing’s neighboring Delta Township will only produce 400 Buick Enclaves, rather than the budgeted 3,600. The result has been a “stripping” of the line and elimination of overtime for UAW employees in the plant.
The Grand River Assembly Plant in Lansing is also impacted by the stripping and hour cutbacks. This will have a major impact on the local economy of Lansing, where GM is the second biggest employer, after the state of Michigan.
The rippling effect of this stripping and hourly cuts as the area moves into the holiday season is likely to impact sales in the area. Combine that with unemployment rates in the area, which was reported at 7.1 percent in September, and the notices from major retailers that they are expecting a significantly scaled back shopping season, and the outlook for the area’s economy only gets gloomier.