GM Trending Towards a Younger Workforce

story first appeared in The Detroit News

The new generation of automotive manufacturing workers at a General Motors Co. subsidiary here is focused on career and environment, and they want to work with cutting-edge technology.

That's part of what attracted many millennials — roughly defined as those born in the 1980s and 1990s — to help create an integral part of the future of the automobile: They're assembling lithium-ion batteries for the Chevrolet Volt extended-range plug-in and the equivalent cars the automaker sells in Europe and Australia.

The Brownstown Battery Assembly Plant, in a former warehouse with little to identify it as a GM plant, represents the Detroit automaker's youngest workforce. It is operated by a GM subsidiary, GM Subsystems Manufacturing LLC. And 45 percent of its hourly workforce is composed of 24-to-31-year-olds.

That's a huge contrast to other GM plants, where that generation, on average, represents 9 percent of the workforce. The average GM U.S. hourly worker is 47 years old.

About 70 hourly workers and 35 salaried workers assemble packs for the Volt that contain 288 lithium-ion cells manufactured by LG Chem. Trucks arrive four times a day to take battery packs to the nearby GM Detroit-Hamtramck Assembly Plant, where they go into the Chevrolet Volt, Holden Volt and Opel Ampera. Late next year, the Brownstown plant expects to start assembling batteries for the plug-in Cadillac ELR coupe.

Most of Brownstown's hourly employees have not previously worked for GM. Many, including the plant's youngest employee, Valerie Myaard, 24, of Flat Rock, had no auto or manufacturing experience. She started in May 2010 and now is a team leader, overseeing five workers.

Young seek new challenges

GM partnered with Scratch, a Viacom company, to help research young workers. It found they are quick to seek new challenges, are able to multitask and want to move up the career ladder.

Many Brownstown workers have held multiple jobs since the plant opened in 2010.

They also have worked together to develop the best and most effective ways of doing things. They determined where to set up components on a cart for assembly workers to use.

Even the plant's union shop chairman is just 27.

But attracting talented younger workers who see the auto industry as a career has been a challenge. It also is something Gov. Rick Snyder has said is vital to its success.

Jay Baron, president and CEO of the Center for Automotive Research in Ann Arbor, said in a statement that GM is just now starting to see a trend in the average age of the hourly worker in the auto industry.

Some workers thought a GM career was out of reach. Shannon Pearson, 28, of Taylor is one. She had family ties to GM and had a short-lived job at a GM plant in 2006.

Excited about technology

Many of the younger workers at Brownstown are relishing their roles working with new technology.

Brett Powell, 31, of Hartland, who has worked as a technician at the proving ground and worked for a small firm that manufactured electric vehicles, runs tests on returned batteries to find the cause of a failure.

Many at Brownstown have moved up the ranks quickly, including Tony Lamentola, 26, of Southgate. The college student previously worked as a porter and fast food restaurant employee. After starting at Brownstown in 2010, he was promoted last fall to team leader.

Lamentola said he likes being on the "forefront of technology" and sees the importance of getting young people involved in the auto industry.

GM Hopes Volt Juices Its Future

Story by The Wall Street Journal

General Motors Co., outlining a raft of new vehicles designed to reinvigorate its lineup, said its much-awaited Chevrolet Volt is expected to get 230 miles per gallon in city driving.

The Volt is at the forefront of GM's efforts to win back lost U.S. market share with 25 product launches by 2011.



At 230 mpg, the Volt would dwarf the fuel economy of any mass-market vehicle on sale today, including Toyota Motor Corp.'s Prius hybrid, which is rated at 51 mpg in city driving. It also could deliver a big boost to GM's efforts to cultivate a green image, a key element of the company's restructuring.

The Volt is set for U.S. launch late next year as a 2011 model. The mileage expectation reflects new methodology for electric and plug-in hybrid cars being finalized by the Environmental Protection Agency that factors in electricity used to try to reach a miles-per-gallon equivalent. The intent is to allow consumers to measure the vehicles against traditional gasoline-powered ones.

The EPA said it hasn't tested the Volt.

The Volt is powered by a lithium-ion battery pack, with a range of about 40 miles, that can be recharged through a traditional power outlet. For longer drives, a small gasoline engine takes over, powering a generator that creates electricity to run the car's motors. The Volt's expected total range on one tank of gas is more than 300 miles, GM said.

Frederick "Fritz" Henderson, GM's chief executive, said at a media event that owners who charge the Volt daily could go days without the gas engine firing up. The U.S. Transportation Department says 80% of Americans commute less than 40 miles a day.

Mr. Henderson added he is confident the Volt's combined city and highway mileage -- the figure commonly used to gauge efficiency -- will be in the triple digits. "Having a car that gets triple-digit fuel economy can and will be a game-changer for us," he said.

GM's mileage estimate for the Volt promises to start a battle among auto makers as they rush to deliver electric cars, a segment that some executives believe could account for 10% of sales within four years.Nissan Motor Co. plans to launch next year the Leaf, a plug-in hatchback. On Tuesday it responded to the Volt news with a reminder that the Leaf would get a 367-mpg rating under the EPA draft guidelines. But unlike the Volt, the all-electric Leaf will need to be recharged when its battery expires after about 100 miles.

Mr. Henderson acknowledged the Volt's high price, expected at around $40,000, and lack of available public recharging stations are potential challenges. Even with an expected $7,500 tax credit the Volt will cost substantially more than the $22,000 Prius. Charging the batteries should cost owners about 88 cents on average, GM said.

The Volt will be unprofitable for GM at launch because of the high costs of its development and the batteries. GM is counting on economies of scale to make the vehicle profitable eventually.

The new GM board has said it wants management to accelerate product launches. Coming models include high-end compact cars for Buick and Cadillac, a convertible version of the Chevrolet Camaro and a revamped Chevrolet Aveo subcompact.

Mr. Henderson said GM remains on track to have positive net cash flow next year and post a net profit by 2011. He also said it intends to increase production as the "cash for clunkers" rebates boost demand for its vehicles.