Unit 1 (GM) Chairperson's Report - June 11, 2025
UNIT 1 (GM) SHOP CHAIRPERSON’S REPORT
JUNE 2025
KENNETH D. HINES
UNIT 1 (GM) SHOP CHAIRPERSON
On Tuesday, June 10, 2025, at approximately 4:45 PM, we received notification from General Motors that Arlington would no longer be a single source plant for the full-size SUV global market. This was done on the same day that the plant received the 2025 J.D. Power award for dependability for the Chevy Tahoe. This announcement brings much concern to the membership here at Arlington Assembly. The viability of our future, the employment status of our members, and our current operating schedule are all questions that need to be addressed. The publication that went out to the membership read as follows:
“As you may know there have been many recent changes throughout the company to better meet customer demand. Today, we wanted to proactively share additional updates related to our products and manufacturing footprint.
“Due to the high demand for the amazing full-size SUVs that this team builds, the company has decided to utilize Orion Assembly in Lake Orion, MI, to build more of these best-selling vehicles. Orion Assembly is expected to start production early 2027 with gas LD truck and full-size SUV products.
“The strong demand for these vehicles is a testament to the level of quality and craftsmanship this team delivers.
“There are no changes to our plant’s operations at this time, though we expect Orion’s increased capability will support greater schedule balance long term.”
Recent changes in Administration have caused a shift in the company’s vision regarding electrical vehicle production. The challenges in the full-size SUV and pickup markets to go electrical have caused the company to shift back to Internal Combustible Engines (ICE), and with this shift there is an increased need for additional vehicles to fulfill the market demand.
This announcement is celebrated but also brings great concern, because for over 20 years Arlington Assembly was the single source supplier for the world for full-size SUVs for the General Motors corporation. We are told that the reason for this shift in policy is due to the increased demand for the product we manufacture; quite frankly, they say that there are more orders than we have the capacity or the capability of building. This is where Orion will build the additional units that Arlington cannot fulfill due to not having the capacity to do so. We have a demand for 15,000+ vehicles that need to be produced, with a limited number of units in our field supply
With that being said, we do not expect an immediate change in operations or schedule for the foreseeable future as Orion does not start light duty truck and full-size SUV production until 2027. We expect to continue to be on a 3-shift operation even when Orion is operational. This announcement does not come without questions from the membership, as it has the ability to impact this local in many ways.
Here are some of the concerns answered, but not all:
We will maintain the current 6-day schedule.
There will be no effect on the total plant population.
The temporary workforce will remain unchanged.
There will be no 96 Moves to Orion.
The Saturday off and the FS process will be continued.
We are told that Orion will only handle the excess units that Arlington does not have the capability of building, but this still puts us into a competitive situation to produce a quality product. For some that have not experienced this before, Arlington Assembly was once an overflow plant for both Janesville, WI and Silao, Mexico. We were often whipsawed against each other to increase efficiency, productivity, and to drive down the overall cost of the vehicle. This type of strategy puts facilities in competition with each other to continually make concessions, and to erode gains that were bargained through local negotiations.
What is an overflow plant? An overflow plant is used for extra capacity; it is utilized to increase production capacity when there is a surge in demand. This often occurs during peak buying seasons, promotional events, or unexpected surges in orders. In essence, a manufacturing overflow plant serves as a backup or supplementary production resource.
Here's how it works:
Meeting Demand: When a sudden increase in demand for a product cannot be met, they can turn to an overflow plant to produce the additional quantity required.
Quality Standards: Overflow plants are equipped to handle high-volume production while consistently maintaining the same quality and standards.
Flexibility and Cost-Effectiveness: An overflow plant provides flexibility, allowing GM to scale production up or down based on demand without investing in additional in-house infrastructure.
Orion Assembly is in Lake Orion, MI with 4,300,000 sq. ft. of space and one of the most highly automated manufacturing facilities in the world with approximately 1,032 hourly and salaried employees. They have a state of the art and almost fully automated paint facility as well as body shop. Their current product is the Chevrolet Silverado & GMC Sierra EV battery electric pickup trucks.
The announcement that Orion Assembly will be the additional volume plant for Arlington is a cause for concern. Orion Assembly currently has outsourced its material department, has a reduced number of individuals in their driving and/or final process department, and employs only a handful of skilled tradespersons at its facility. Orion had to make those concessions in the 2015 small car agreement to stay open and viable. These are all future potential hurdles that Arlington will have to overcome in dealing with the overall cost of units, to maintain our status.
We have been in touch with the International parties with our concerns of creating an additional volume facility for our product and are currently waiting on their response. We know this brings a great amount of stress and uncertainty, especially to our younger workforce. We ask the membership for their patience as we gather information and strategize for what is best for Arlington and its membership.
In Solidarity,
Unit 1 (GM) Shop Committee
Kenny Hines, Chairman"
Gino Clark, Zone
Shenequa Shepard, Zone
Steve Ewell, Zone
Felise Glover, Dist. – 1A
Hykeem Stover, Dist. – 5A
Jim Robinson, Dist. – 5B
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