A second parts supplier to the General Motors Lordstown plant in Ohio has announced it will lay off its workforce. Lordstown Seating Systems, a subsidiary of Magna, announced it will idle operations and cut virtually all jobs from its operations in the process.
The Tribune Chronicle reported Sunday the seat supplier filed the notice with the Ohio Department of Job and Family Services and said 120 jobs will be cut. The news follows the impending closure of Source Providers, a second local supplier. The company once employed 600 workers, but the final 180 employees will be out of a job when the company shuts down in tandem with the Lordstown plant’s idling.
Critically, Lordstown Seating Systems will not shut down, but idle its operations with hopes GM will allocate a new vehicle to the Lordstown plant itself. In a statement, the company said, “Based on the information of which we are currently aware, the layoffs are expected to last longer than six months. Should General Motors allocate a future product to Lordstown Assembly, we would hope to be selected as the seat supplier, which may allow us to recall a significant number of employees.”
However, if no new vehicle is selected for the plant, the company said to consider the layoffs permanent.
At the Lordstown plant, 1,600 employees will lose their jobs, though GM has underscored the fact it has 2,700 open positions at plants that build trucks and SUVs. Over 1,000 affected employees from various plants have applied for transfer opportunities. GM will also idle three other plants in the U.S. aside from the Lordstown plant, including the Detroit-Hamtramck plant in Michigan.
Analysts have already forecasted that if GM was to save one of the plants from closure, the Detroit-Hamtramck plant has a better chance. The facility is newer and would likely require less investment for new vehicles.
But, we won’t know the final outcome of both assembly plants until GM and the UAW work on a new labor agreement. The current agreement expires this coming September.