As Sales Plunge, GM Might Cancel Six Car Models

Friday, July 21, 2017
By Paul Martin

by Wolf Richter
WolfStreet.com
Jul 20, 2017

Discussions with the UAW have started. Entire plants at risk.

GM is getting whacked harder than any of the major automakers by the industry-wide plunge in car sales, as Americans switch in ever larger numbers from cars to “trucks,” which include pickups, van, SUVs and crossovers. In the first half of 2017, GM’s car sales in the US plunged 19%, and in June 38%.

The rest of the industry (without GM) booked declines in car sales of “only” 10% in the first half and 9% in June.

GM is losing ground in the bitter industry-wide reality of dropping car sales. Inventory is piling up on GM dealer lots. At the end of June, some car models exceeded a catastrophic 180 days’ supply. GM has already cut production. There have been layoffs. Plants have been temporarily shut down, and entire shifts have been eliminated. But it hasn’t been enough.

Now comes the next step: Ending production entirely of some models, shuttering plants for good or converting them to making trucks, and fretting about jobs. And that’s already being discussed between the UAW and GM, according to UAW president Dennis Williams.

“We are talking to [GM] right now about the products that they currently have” at underutilized car plants, such as Hamtramck in Michigan and Lordstown in Ohio, and whether these models could be replaced with more popular vehicles such as crossovers, he told reporters today, including Reuters. “We are tracking it,” he said. “We are addressing it”

The Rest…HERE

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