GM to cut 680 Spring Hill jobs, but build new Cadillac SUV at plant

General Motors plans to lay off 680 employees at its Spring Hill sport-utility vehicle plant effective Nov. 27 amid “moderating” sales, according to a notice filed with the state.

The Detroit-based automaker is eliminating the third shift and reducing production of the GMC Acadia and Cadillac XT5 crossover SUV models made at the plant.

“Although crossovers now make up a larger share of the automotive industry, overall volumes are moderating,” the company’s local spokesman Lauren Langille said. “So GM believes that the best way to react to this moderating of the market is to reduce our output.”

GM has roughly 3,750 employees at the Spring Hill plant.

Separately, the automaker told employees on Friday that it plans to invest $294 million toward building a new Cadillac SUV plus additional upgrades at the Spring Hill plant. “This is going to be an important model for Cadillac because it adds to our crossover portfolio,” Langille said.

In its WARN Act notice to the state, GM said the affected workers include roughly 305 temporary and 340 seniority production employees all represented by the United Auto Workers. The automaker also said roughly 35 salaried employees could lose jobs, dependent on transfer opportunities to other GM facilities.

Spokeswoman Langille said the actual number of affected workers will be determined over the next several weeks. Separate resulting layoffs could occur at suppliers to the plant, including Ryder Systems Inc. and Magna Spring Hill Seating.

GM, meanwhile, said sales of its Cadillac XT5 crossover SUV, including the SRX model it replaced, are up 11 percent this year through August. Sales of the company’s GMC Acadia model are up 45 percent year-to-date through August.

“This adjustment allows the plant to maintain stable production, protects the value of our brands in any sales environment and provides the smallest impact to plant employment going forward,” Langille said.

Maury County had a 3.2 percent unemployment rate for August, down slightly from July.

“Although we never like to see layoffs, we know that the positive environment of automotive manufacturing will quickly absorb these individuals with highly sought-after manufacturing skill sets,” said Jan McKeel, executive director of the South Central Tennessee Workforce Alliance.