GM, Fiat Chrysler to cut passenger cars production in U.S., Canada
As consumer preference grows toward trucks and SUVs, General Motors Co. and Fiat Chrysler are on their way to cut production in several plants across U.S. and Canada.
According to Bloomberg, GM plans to permanently cut about 3,300 employees at three car plants to reduce production of models including the Chevrolet Cruze compact.
Cuts will affect 1,300 workers at GM’s Detroit-Hamtramck car plant. The facility makes the Chevrolet Impala, Buick Lacrosse and Cadillac CT6 sedans, as well as the Volt plug-in hybrid.
The company also said it was temporarily idling production at five U.S. passenger-car plants, and Fiat Chrysler said it would halt output for New Year’s week at two Canadian vehicle factories making Chrysler 300, Dodge Charger and Challenger sedans and Chrysler Pacifica minivans.
In November, GM announced plans to end a third daily shift building Cruze in Lordstown and dismiss 800 employees at its factory assembling the Chevrolet Camaro and Cadillac CTS and ATS models in Lansing, Michigan.
By using shorter-term shutdowns in January, GM is trying to reduce inventory from an almost 90 days supply to about 70 days by the end of next month, according to Dayna Hart, a company spokeswoman.
In addition to the factories in Detroit-Hamtramck, Lansing and Lordstown, the plants being idled are in Bowling Green, Kentucky, and the Fairfax industrial district of Kansas City, Kansas.
The consumer shift from cars to crossovers and trucks “is projected to continue,” Hart said. “We are adjusting stock imbalances.”
Workers at Fairfax assemble the Buick Lacrosse and Chevrolet Malibu, while Bowling Green builds Chevy Corvette sports cars.