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GM To Shut Down Five Plants In The New Year

RMAutoBuzz

Due to an oversupply in sedans and a lack of demand among American consumers, automaker General Motors (GM) will be shutting down five of their assembly plants in the U.S. at varying times in January. The company confirmed this on December 19th.

Auto News reported that on December 11th, Automotive News had a report on the growing inventory at GM, and suggested that cutbacks in production might be coming down the pipe.

This past October, GM reported its third-quarter results and stated a raised United States dealer inventory by approximately 111,000 cars. As per the Automotive News Data Center (ANDC), GM had a supply of 86 days when it came to new autos in their U.S. inventory on the first of this month, an increase from an 84 days’ supply last month. This has increased as compared to last year’s numbers on December 1st, where inventory was at 70 days.

GM has stated that this days’ supply number would swing before curbing out at the year was over. A GM spokesperson has stated the company is aiming to get inventory to hit 70 days.

As for the shutdowns, the Detroit-Hamtramck Michigan plant will be closing for three weeks in January, as well as the Fairfax Kansas factory. Michigan will be hit again, with it’s Lansing Grant River plan closing for two weeks next month; as well as Ohio’s Lordstown plant and Kentucky’s Bowling Green plant closing for one week, respectively, at some point next month.

The bad news for GM and its employees doesn’t end there. Last month the company announced that approximately 2,000 of its staff would be laid off, and added a third shift suspension at the Lansing and Lordstown plants, taking place in January 2017 as well.

Currently the Lansing operation builds the Cadillac CTS and ATS, with the Lordstown factory manufacturing Chevrolet Cruzes. Unfortunately, sales for all these cars have decreased by approximately one-fifth as compared to 2015 sales.

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