GM CEO Barra: Detroit-Hamtramck plant layoffs prepare automaker for an all-electric future
A joint venture with LG Chem to pour $2.3 billion into a new electric battery plant will also create more than 1,000 new jobs.
A day after General Motors announced plans to lay off more than 800 workers at its Detroit-Hamtramck plant, CEO Mary Barra told FOX Business that the decision was made in order to ensure the company's future is all-electric.
"We are getting ready to build battery-electric trucks in this plant," she told Stuart Varney. "So Detroit-Hamtramck has a bright future and each of the impacted employees have an opportunity to work in some of our other facilities."
GM LAYS OFF 800 WORKERS DURING SWITCHOVER TO ELECTRIC VEHICLES AT DETROIT PLANT
The decision comes as the automaker announces a joint venture with LG Chem to pour $2.3 billion into a new electric battery plant in the Lordstown area of Northeast Ohio and create 1,100 new jobs.
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Barra said the partnership allows them to focus on the customer and make high quality, affordable vehicles.
"Our partnership with LG Chem enables us to, I think, be in a leadership position as we go forward and begin launching these vehicles," she said.
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Barra said the Trump administration is aware of the decision to build the facility and that GM is "excited" to be working with state and local governments.
However, just last year, the automaker announced plans to slash 15 percent of its salaried workforce and halt production at five plants in Ohio, Michigan, Maryland and Ontario, Canada. As a result, the Lordstown plant shut down in March and about 1,500 workers were laid off.
The investment builds upon GM’s decision to pump $28 million in a Michigan battery lab, last year.
In addition, GM's manufacturing investments in Ohio earlier this year totaled $700 million and will create about 450 jobs.