General Motors’ (NYSE: GM) Warren Transmission Operations plant in Warren, Michigan has officially closed. The now-shuttered facility first opened in 1941 and was purchased by GM in 1958. It has been under GM’s control ever since.
According to the company’s website, Warren Transmission Operations employed 232 hourly workers and 30 salaried workers, for a total of 262. GM reports that about 60 workers from the plant have taken transfers to another company facility, while 25 decided to retire. GM said in its statement, “We have job opportunities for virtually every hourly employee at the impacted plants provided they are willing to relocate.”
The factory was one of five facilities in North America that GM slated for closure toward the end of 2018. The plant built six-speed automatic transmissions for the Chevrolet Impala and Cadillac XTS. Those six-speed automatics are now considered inefficient and out-of-date. Most new cars and crossovers use eight- or nine-speed automatics.
Both the Chevrolet Impala and Cadillac XTS are produced at Oshawa Assembly in Ontario, Canada. GM is discontinuing both models. The Ontario plant is scheduled to close later this year.
The closure of the plant in Warren comes just a few weeks after the UAW and GM officials met to discuss contract negotiations. Employees were represented by UAW Local 909. While the plant is closed for now, that does not means that it won’t reopen in the future to make a different type of transmission. GM says that the plant’s ultimate fate rests on the negotiations with the labor union. The UAW’s current contract with GM expires in mid-September.
Last year, GM announced the company would be embarking on a business transformation. As part of the plan, the company is reducing its salaried workforce by 15 percent, including non-factory workers. The move would affect 8,000 salaried workers, and 6,000 hourly workers will either lose their jobs or be reassigned to other plants. GM previously offered voluntary buyouts to 18,000 of its salaried workers.