GM Is Laying Off 1200 Workers at a Plant in Detroit

GM Is Laying Off 1200 Workers at a Plant in Detroit

General Motors (GM) will reportedly cut production at a Detroit-area plant in response to sluggish demand for passenger cars.

Both GM and rival Ford Motor have struggled for most of this year to rein in high inventories of passenger cars as consumers have shifted to buying pickup trucks and sport utility vehicles.

Detroit-Hamtramck Assembly builds the following vehicles: Buick LaCrosse, Cadillac CT6, Chevrolet Impala, Chevrolet Volt. Large sedan sales have been hardest hit in reason years by consumer shifts to crossovers, leading GM to have ballooning inventory of those models. Reuters also notes that GM plans to cut the third shift at its plant in Spring Hill, Tennessee, as of late November this year.

The Wall Street Journal first reported GM's production cuts earlier Thursday. GM has slashed passenger-car production in the past year, laying off almost 3,000 workers and transferring some to plants making SUVs, the Journal said.

Following the temporary shutdown, GM will slow the assembly line by 20 percent and dismiss 200 workers, said the person, who asked not to be named because employees hadn't yet been informed of the decision.

Impala sales are off 32 percent through September, while Volt sales are down 6 percent and LaCrosse sales are off 21. Shares were down 1.6 percent to $44.74 at 10:41 a.m. "This action continues to show that GM remains price disciplined" by cutting production instead of increasing incentives.

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