GM to scale back production at Detroit sedan plant

General Motors plans to temporarily shut down Detroit factory over slow demand, says report

General Motors plans to temporarily shut down Detroit factory over slow demand, says report

"This action will help maintain more stable production", the No. 1 US carmaker said.

The No. 1 USA carmaker plans to shut the Detroit-Hamtramck factory for about six weeks from mid-November and cut production by roughly 20% once operations resume, the source said. The planned reduction will reportedly cost 200 jobs at the facility. The move was originally reported by the Wall Street Journal. The Detroit-Hamtramck plant builds Chevrolet Volt and Impala, Cadillac CT-6 and Buick LaCrosse vehicles.

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.

GM, like Ford and other automakers, is realigning production as consumer demand shifts markedly from passenger cars to SUVs and trucks.

Earlier this year, GM eliminated the plant's second shift, saying it was laying off around 1,200 workers. "This is consistent with our view that domestic (manufacturers) continue to face steep competition in the passenger auto segment and production must be aligned with waning sales in order to reduce the elevated amounts of inventory", Buckingham Research Group analyst Joseph Amaturo wrote in a note to a client. A GM spokesman says there are no plans to reinstate any of the eliminated shifts at this time.

Although the shifts GM has eliminated so far employed 6,000 hourly and salaried workers, the actual layoffs have been smaller.

Shares of GM fell 1.4% to 44.82 on the stock market today, easing from the post-bankruptcy high of 45.59 set in Wednesday's session but still in profit-taking sell territory.

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