March 6, 2017 / 3:14 PM / 5 months ago

GM will lay off 1,100 in Michigan after domestic production shift

The GM logo is seen in Warren, Michigan, U.S. on October 26, 2015.Rebecca Cook/File Photo

WASHINGTON (Reuters) - General Motors Co (GM.N) said on Monday it will lay off 1,100 workers in May at its Lansing Delta Township assembly plant in Michigan as it shifts production of a vehicle to Tennessee.

The largest U.S. automaker last year added 800 jobs at its Spring Hill, Tennessee plant to build a new version of the GMC Acadia SUV. The Lansing plant will continue building the Buick Enclave and Chevrolet Traverse after it retools for a month, GM spokesman Tom Wickham said in an emailed statement.

GM has announced other U.S. factory cuts even after it said in January it would invest another $1 billion in U.S. factories.

U.S. President Donald Trump has urged GM and other automakers to build more cars in the country as part of his pledge to boost U.S. manufacturing jobs and discourage the industry from investing in Mexico.

GM has said the $1 billion investment would allow it to create or retain 1,500 U.S. jobs, but has not specified what jobs are impacted.

GM has also said it will begin work on bringing axle production for its next generation of full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 U.S. jobs. The part was previously built by American Axle & Manufacturing Holdings Inc (AXL.N).

GM said in November it would cut about 2,000 jobs when it ended the third shift at its Lordstown, Ohio, and Lansing Grand River plants in January. In December, it said it planned to cancel the second shift and cut nearly 1,300 jobs from its Detroit-Hamtramck assembly plant in March.

Those job cuts were sparked by lower demand for cars as Americans buy more SUVs and other larger vehicles.

Trump has repeatedly praised GM's January investment announcement.

GM "committed to invest billions of dollars in its American manufacturing operation, keeping many jobs here that were going to leave. And if I didn't get elected, believe me, they would have left," Trump said at a news conference in February.

GM has been adding a significant number of U.S. jobs in recent years. It had 105,000 U.S. employees at the end of 2016, up from 97,000 at the end of 2015, according to a company filing in February. GM on Monday declined to provide its current U.S. employment figure.

In a deal announced on Monday, GM will sell its European operations to France's PSA Group (PEUP.PA) in a move that doubles down on the U.S. company's aim of being less global but more profitable.

Reporting by David Shepardson; Editing by Meredith Mazzilli

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