The Lordstown Ripple Effect
We know that GM’s choice to halt vehicle production and lay off thousands of workers at plants in Michigan, Ohio, and Baltimore will be devastating for UAW members at those plants — but they aren’t the only ones bracing for the negative impact of this decision.
Hundreds of companies along the automotive supply chain across the Midwest face uncertainty in the wake of GM’s decision. In Ohio, where GM announced they will end production of the Chevrolet Cruze in Lordstown next spring, there are between 580 and 1,100 companies considered to be a part of the automotive supply chain that make things like small metal parts, water pumps, and fuel injectors.
Many of these businesses depend on GM to purchase their products. Ending production in Lordstown—and the possibility that GM could choose to shut down the plant in its entirety—could prove to be disastrous for Ohio’s economy. Without good-paying jobs, workers won’t have the purchasing power to support small businesses in the way that they used to, and the consequences will be felt by workers, employers, and consumers up and down the automotive supply chain.
Click here to read more about how Ohio companies will be impacted by the production halt in Lordstown.