GM to Lay Off 1,500 More Workers, as its Car Sales Plunge Twice as Fast as Rest of Industry

Friday, October 13, 2017
By Paul Martin

by Wolf Richter
WolfStreet.com
Oct 12, 2017

Starting in mid-November and going through the rest of the year, General Motors will close its Detroit-Hamtramck assembly plant – its only remaining factory in its hometown – and lay off about 1,500 workers, “people familiar with the plan” told the Wall Street Journal. When the plant does resume production, output will be cut by 20%, and 200 people will be out of a job.

Back in 1999, the plant produced over 200,000 Cadillacs and Buicks a year. This year, it might barely produce 80,000 vehicles.

The Detroit-Hamtramck plant has already been subject to temporary layoffs earlier this year when an evening work shift was eliminated – part of the 10,000 layoffs that were announced last December.

In July, the plant cropped up in discussions between the UAW and GM. At the time, six passenger car models were “under review” at GM. And there was talk that they might get cancelled after the 2020 model year. The models: Chevrolet Volt (the hybrid, not the Bolt, an EV), Buick LaCrosse, Cadillac CT6 (the brand’s new luxury flagship sedan), Cadillac XTS, Chevrolet Impala, and Chevrolet Sonic.

The Detroit-Hamtramck plant makes some of these slow-selling cars, including the Volt, the Buick LaCrosse – dealers are sitting on 10 months’ supply! – and the Cadillac CT6.

GM car sales are getting clobbered not only by a change in consumer preference for SUVs and compact SUVs (crossovers), but also by its competitors. GM cars sales have plunged 18.4% year-to-date, while car sales of the rest of the industry without GM have dropped “only” 9.4%. GM’s car sales are getting crushed at nearly twice the rate of the rest of the industry!

The Rest…HERE

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