By Kalea Hall
DETROIT, May 29 (Reuters) – A battery plant partly owned by General Motors is delaying the return of hundreds of workers in northeast Ohio amid continued weak demand for electric cars.
Workers at the Ultium Cells plant in Warren, Ohio, jointly owned by GM and LG Energy Solution, are now being told they will begin to return to work in August, the company confirmed in a statement to Reuters. They have been out of work since January, when they were given a June return-to-work timeframe.
“Ultium Cells Ohio employees who have been on temporary layoff status are now expected to return in August,” the company said. In an internal announcement to employees, an image of which was viewed by Reuters, the company said its decision to push back the return timeline was “based on a detailed analysis of the electric vehicle market” so far this year.
Ultium Cells, which provides battery cells to GM for electric vehicles, last fall said it would temporarily lay off 850 employees at the plant and permanently let go 480.
The company brought a small number of workers back to the idled plant this month.
GM and other automakers pulled back on EV manufacturing following the loss of a $7,500 federal tax credit in late September. While automakers continue to build and sell EVs, they have lowered factory output to match demand for them.
(Reporting by Kalea Hall. Editing by Chizu Nomiyama, Mike Colias and Mark Potter)
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