GM just stated that it will halt the manufacturing of the Cadillac XT4 at its Fairfax, Kansas, facility, resulting in over 1,600 layoffs by the end of 2024. However, there are some positive aspects as well.
This action is a component of a comprehensive transformation plan that aims to get the factory ready to produce electric cars like the Chevrolet Bolt EV.
Are we witnessing the end of a period or the start of a new and creative chapter at GM? The business is making significant bets on electrification and a more sustainable future. Come explore the specifics of these developments with us.
They’re going to fire employees
It’s sad, but that’s the way things are. In a recent announcement, General Motors stated that 1,695 employees from its Kansas facility would be let go at the start of the summer through a workforce adjustment and retraining notice, or WARN.
How are these layoffs going to take place?
At this Fairfax facility, both temporary workers and full-time hires will be impacted by the two rounds of layoffs.
- The first round of layoffs is planned on November 18 and is expected to impact 250 temporary employees whose permanent contracts will be canceled and 686 full-time employees who will experience temporary layoffs.
- On January 12, 2024, at the start of the year, 759 full-time employees will be let go in the second round of layoffs.
We’re talking about over 1,700 families whose futures will be upended in the coming months, not to mention the demotivation that employees experience when they realize their employment is coming to an end.
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How will the Cadillac XT4 fare?
One of the reasons for these widespread layoffs is that the production of this premium SUV, which is presently produced in this very factory, will cease.
This opulent car will therefore take a little hiatus while this assembly plant undergoes modifications. We’ll explain what they are as you read on.
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How will the assembly plant in Fairfax fare?
No, it will just make a few minor investments at a relatively low cost of $390 million; it will not close permanently. For what purpose? Are you familiar with the recently released Chevrolet Bolt EV?
When the plant is ready for work again, which is likely to happen at the end of 2025, it will be produced there along with the Cadillac XT4.
Thus, it is true that General Motors will formally concentrate on the electric vehicle (EV) market. For this reason, the Fairfax facility in Kansas needs to be modernized, as it requires new equipment, new tools, and training for the technical staff on electric car skills.
But by the middle of 2025, it’s conceivable that some of this additional production will already be under way.
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Has the number of layoffs increased?
Regretfully, the answer is yes. These layoffs follow GM’s August layoff of 1,000 paid workers across a number of departments (including software and services). According to the brand, these cuts were part of a capital reduction initiative, in which the main objective was to align workers with the new approach they want to give to production.
The Source: unionrayo
