LORDSTOWN, Ohio – General Motors Co. plans to cut 550 jobs at its Ultium Cells plant here, with another 850 on temporary layoff, the Detroit News reported Wednesday morning.
Ultium, a joint venture between GM and Korea-based LG Energy Solution, manufactures battery cells for several models in GM’s electric vehicle lineup. The plant employs approximately 2,200 people.
A second Ultium plant in Spring Hill, Tenn., will place another 700 on temporary layoff, the Detroit News reported.
GM also plans to place 1,200 on layoff at the automaker’s all EV plant in Detroit, Factory Zero, the newspaper reported.
In a letter to shareholders last week, Mary Barra, GM chairwoman and CEO, said the automaker was “assessing our EV capacity and manufacturing footprint” because of an expected slowdown in EV sales. The company took a $1.6 billion charge during the third quarter because of anticipated losses in the EV market.
In her letter, Barra said a less stringent regulatory environment related to fuel efficiency standards under the Trump administration –- as well as the expiration of the $7,500 EV tax credit program Sept. 30 – influenced the decision.
Barra added that electric vehicles remain the company’s “North Star” and vowed to continue investment in the technology. “We will continue to invest in new battery chemistries, form factors, and architectural improvements to drive profitability,” she said in her letter.