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General Motors said on Monday that it will suspend the third production shift at an assembly plant in Michigan, which could affect as many as 1,100 workers as it moves some operations to a different US facility.

The Lansing Delta Township plant employs more than 3,100 in a three-shift operation, which included work on lines including the Chevrolet Traverse, GMC Acadia and Buick Enclave, according to a company website. The third shift will now be suspended, GM said in a statement on Monday, after the carmaker decided to build the new Acadia at its plant in Spring Hill, Tennessee. The move would result in approximately 800 new jobs at that facility, according to GM spokeswoman Erin Davis.

The Buick Enclave and Chevrolet Traverse will still be built at the Lansing Delta Township plant, Ms Davis said. The changes will affect 1,100 jobs at the plant, which includes some employees currently on sick leave and upcoming retirements.

“At the end of the process, we think the impacted employee number will be less than 1,100, but won’t know for sure until we get through the shift reduction,” Ms Davis said.

GM announced in January that it had pledged to invest $1bn in the US as it and other carmakers attempted to garner favour with the incoming Trump administration, which has made reinvigorating the US manufacturing sector a core focus of his policy proposals.

After Mr Trump’s election in November, GM announced a production cut affecting more than 2,000 workers at two of its US plants, including a different Lansing facility that makes the Cadillac ATS and CTS as well as the Chevrolet Camaro. It simultaneously said it would invest $900m at three of its plants, including Lansing grand River, to prepare for future product programmes.

GM announced earlier on Monday that it had reached a €2.2bn agreement to sell its loss-making Opel division to Peugeot owner PSA. Its shares have fallen more than 2 per cent since the start of trading on Monday.

Copyright The Financial Times Limited 2017. All rights reserved.
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