General Motors (GM) has installed new collaborative robots—known as “cobots”—at its Detroit-Hamtramck Factory Zero plant to modernize production, but the move comes at the same facility where it has already laid off 1,000 workers.
GM claims the cobots will improve worker ergonomics, but representatives from the United Auto Workers (UAW) aren’t convinced.
At a facility that has already experienced significant layoffs, the union argues that expanded automation technology will reduce opportunities for human workers.
The expansion of these cobots raises broader questions for the automotive industry. Will these technologies feasibly improve working conditions, or are they merely a way for increasingly pressured automakers to lower labor costs in a highly competitive market?
General Motors
GM adds dozens of collaborative robots in Detroit
The new collaborative robots, or cobots, will work alongside humans at GM’s Detroit-Hamtramck plant, which currently produces a range of electric pickups and SUVs. The automaker claims they’ll make working conditions safer for human employees, while their ability to execute physically taxing and repetitive tasks should theoretically be an advantage.
“We’ve been installing cobots across our manufacturing footprint as part of a broader push to bring more advanced technology into our operations,” GM spokesman Kevin Kelly said in an email to Crain’s, according to Automotive News.
“At Factory Zero, we are implementing them alongside our team — helping improve safety and ergonomics, while keeping our operations flexible and competitive.”
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Despite these potential cobot advantages, it comes at a controversial time. Over 1,000 workers have already been laid off at Factory Zero this year, reports Autoblog. Therefore, existing workers and the unions that represent them are particularly sensitive to rapidly evolving automation technologies that threaten to replace common tasks.
“Our manpower is being taken away from us,” UAW Local 22 president James Cotton told Crain’s. “From top to bottom, we’re disgusted that they have cobots in our plants.”
Cotton toured the GM plant and estimated that around 50 new Fanuc-made cobots have been installed. These cobots are being used to attach various parts to vehicles during assembly.
Why GM’s automation push matters to investors
There are two sides to automakers’ expanding automation in their production facilities. These cobots can help manufacturers like GM improve efficiency and protect profits as labor costs rise and competition intensifies. However, balancing these gains by preserving jobs for human employees is the major challenge automakers face.
Automated machines can lower workplace injuries, improve assembly quality, and eliminate human error. They can also be installed in existing factories without those facilities needing to be expanded.
These efficiencies promise stronger margins at a time when automakers are seeing increasing wage costs.
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There are risks if the rate of automation is not carefully controlled, though. While automakers may be resolving an engineering problem, they could be creating a new labor-relations challenge.
The UAW is preparing for a new round of contract negotiations in 2028, following historic wage gains in 2023. Automation will be a key factor that could raise tensions in these negotiations.
Already, the number of labor hours needed to produce a vehicle has declined by 50% to 70% since the 1980s, said a professor at Wayne State University, Marick Masters.
“The union is going to have to come to grips with it more forcefully than it has up to this time,” Masters said. “This is one of those sea-changing, disruptive type of trends that is going to have enormous effects going forward, that you can’t really know the magnitude of it at this time.”
GM’s automation strategy must balance worker and business needs
Automation isn’t going anywhere and is expected to expand across the automotive industry. For GM and other automakers, establishing how human workers and cobots will work together harmoniously will be crucial.
Presently, workers see automation as little more than a threat to their livelihoods. But manufacturers have an opportunity to redefine their roles and provide retraining opportunities for these employees to work alongside these sophisticated machines.
At the same time, GM can’t ignore the wider implementation of cobots. Rivals across the industry have used robots in major factories, freeing up time for human workers to focus on other tasks.
Ultimately, GM must find a balance between improving automated efficiencies and maintaining the trust of human workers that remain integral to its operations. If it can strike that balance, automation will be viewed as a long-term advantage for workers and investors alike.
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