Published: Fri, October 13, 2017
Entertaiment | By Paul Elliott

General Motors to Shut Detroit Plant and Lay Off Workers

General Motors to Shut Detroit Plant and Lay Off Workers

General Motors will close a Detroit factory for six weeks starting in mid-November due to weak sales, the Wall Street Journal reported Wednesday, citing unnamed sources.

This Detroit plant produces four sedan models which include the Chevrolet Impala and the Buick LaCrosse that have not been performing well. "This action will help maintain more stable production", the No 1 USA carmaker said.

Reduced production will start October 20, followed by a shutdown of the plant starting November 20 that's expected to last through year's end. The planned reduction will reportedly cost 200 jobs at the facility.

While U.S. sales of the Cadillac CT6 are up 51 percent to 8,128 this year through September, the flagship luxury sedan is a low-volume seller. Buick dealers had 284 days worth of LaCrosse sedans in inventory and GM had more than 100 days of Volt and CT6 cars on USA lots as of October 1, according to Automotive News. Large sedan sales have been hardest hit in reason years by consumer shifts to crossovers, leading GM to have ballooning inventory of those models.


A local union representative was not immediately available to comment on the plans.

GM, like Ford and other automakers, is realigning production as consumer demand shifts markedly from passenger cars to SUVs and trucks.

Domestic manufacturers "continue to face steep competition in the passenger vehicle segment and production must be aligned with waning sales in order to reduce the elevated amounts of inventory", Buckingham Research Group analyst Joseph Amaturo wrote in a client note about the Hamtramck news.

GM has already cut deep at the Detroit-Hamtramck plant, including shedding its second shift entirely earlier this year.

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