Galvanize campaign on behalf of GM Lordstown

The strong but fickle force of Adam Smith’s classic economic theory of supply and demand has socked the Mahoning Valley once again.

The 18th century economist’s principle states that when demand for a product falls, its supply and production chains fall as well. We’ve seen that cold-hearted reality at work time and time again in the region, most harshly in the late 1970s when demand for domestically produced steel petered out.

That same economic principle lies at the heart of the distressing news released by General Motors and union officials at the Lordstown Assembly Complex this week. On Wednesday, employees at the national production center of the Chevrolet Cruze compact car were shocked to learn that 1,245 employees, representing 27 percent of the total workforce, will be laid off indefinitely Jan. 23 as the automaker wipes out its entire third shift there.

That disheartening news came as a surprise to many as production lines at the sprawling factory buzzed along 24 hours per day, producing about 1,200 of the new Cruze models daily like clockwork for the past several years. Behind the scenes, however, Smith’s theory, clearly outlined in his “Wealth of Nations,” played out.

Despite recent upticks in sales, the Chevrolet Cruze has seen its overall sales volume decline by nearly 20 percent so far this year over 2015 levels. Market forces therefore dictated that to avoid out-of-control corporate harm, supply must be drawn down.

Clearly then, the significant downsizing of the plant represents no reflection on the quality of the workers or the high standards of their workmanship. Rather, consumer-buying habits simply have shifted to larger vehicles as gasoline prices have plummeted.

That’s no consolation, however, to the workers, their families and the economic pillar for the Valley that the GM Complex represents. As a result, it is incumbent for all who have a stake in re-establishing full production at the plant to marshal their forces for the collective good.

IMPACT IS IMMENSE

To be sure, the impact of the downsizing will be immense. For the more than 1,200 workers, it means insecurity and uncertainty as the holiday season approaches. For auxiliary companies such as Magna Seating Systems in Lordstown, it means a precarious future. And for the entire Valley, it means a surge in our unemployment rate and a loss in economic impact totaling tens of millions of dollars.

Against such dreary losses must rise a united front to soften the impact of the blow, to ensure further cuts are avoided and to work toward restoration of full employment at the plant.

That will require local GM and United Auto Workers officials plus community, civic and political leaders to speak with one voice. With no short-term end in sight to the shift in American drivers’ shift to larger vehicles, such a united strategy will require a fair degree of creativity and flexibility.

As in previous communitywide campaigns to enhance employment and draw new vehicle lines to the plant, a cohesive coalition will need to underscore to corporate leaders the importance of GM Lordstown to the Valley’s economic vitality and to the corporation’s need for high-quality products.

For example, GM could be urged to offer strong buying incentives for the next-generation Cruze and to pump up marketing campaigns touting the many praises the car has earned.

In addition, GM could be encouraged to add a new product line to the plant to compensate for the loss of one-third of its production. After all, corporate hierarchy has a vested interest in seeing Lordstown succeed as it invested hundreds of millions of dollars into revamping and updating it for the new Cruze’s launch.

The layoff announcements did, however, present one slither of optimism. As the nation’s No. 1 automaker halts the third shift in Lordstown, it also is halting Cruze production completely in Mexico. We would hope GM would recognize the value of restoring lost jobs in Lordstown before ever contemplating resuming production in a foreign land.

For now, however, it is incumbent upon all to galvanize a campaign to restore lost jobs, preserve the plant at full operation and to stabilize the economic anchor that the plant so clearly represents to our region.