General Motors idles Detroit plant, lays off 1500 workers

Marco Green
October 12, 2017

General Motors Co. will idle its Detroit-Hamtramck plant for six weeks later this year to pare inventory before making permanent production cuts because of slowing sales, according to a person familiar with the plan.

The factory, which operates only one shift, builds Buick LaCrosse, Cadillac CT6 and Chevrolet Impala sedans, plus the Chevy Volt plug-in hybrid vehicle - all of which have been slow sellers. Large sedan sales have been hardest hit in reason years by consumer shifts to crossovers, leading GM to have ballooning inventory of those models. The company also extended traditional summer plant shutdowns to further reduce production of certain models like Chevrolet's Cruze and Malibu.

GM declined to comment to the Journal and was not immediately available for comment to CNBC. It will be shut down through the end of the year starting November 20. While the temporary layoff affects nearly 1,500 workers, when operations resume, 200 employees will be out of a job.

GM has already cut deep at the Detroit-Hamtramck plant, including shedding its second shift entirely earlier this year. GM is also expected to let 200 workers go when production is cut next year. They include the Buick LaCrosse, sales of which are down 21.5% year to date, and the Chevrolet Impala, which is down 31.8%. Shares were down 1.6 percent to $44.74 at 10:41 a.m. A GM spokesman says there are no plans to reinstate any of the eliminated shifts at this time.

Other reports by Click Lancashire

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