General Motors plans to idle its Detroit-Hamtramck assembly plant for six weeks, according to a new report. The cut comes as demand for passenger cars continues to fall as consumers shift to crossovers, SUVs and trucks.
Detroit-Hamtramck produces only passenger cars, including all of GM’s larger sedans, such as the Buick LaCrosse, Cadillac CT6 and Chevrolet Impala. Large sedan sales have been hardest hit in reason years by consumer shifts to crossovers, leading GM to have ballooning inventory of those models. Along with the large sedans, the Chevrolet Volt is also assembled at the plant.
The Wall Street Journal is reporting this morning that GM will shut down the plant in mid-November for six weeks. Once production resumes at the end of the downtime, the company will reduce production by about 20 percent at the plant. The planned reduction will reportedly cost 200 jobs at the facility.
GM has already cut deep at the Detroit-Hamtramck plant, including shedding its second shift entirely earlier this year. Along with that announcement, GM said it planned to layoff around 1,200 employees at the plant.
So far this year GM has had shift reductions at five of its North American assembly plants. The most recent reduction was announced for Spring Hill, Tenn., which produces the Cadillac XT5 and GMC Acadia crossovers. In mid-November Spring Hill lose its third shift of production.
At the time of publication GM has not officially commented on the new cuts reportedly slated for Detroit-Hamtramck.