GM to idle Detroit-Hamtramck plant, 1500 workers for 6 weeks

GM to idle Detroit-Hamtramck plant, 1500 workers for 6 weeks

General Motors plans to scale back production and temporarily shutter an assembly plant in Detroit through the end of the year amid a slump in vehicle demand across the industry.

The Hamtramck plant makes four poorly performing sedan models, including the Buick LaCrosse, sales of which are down 21.5 per cent year to date, and the Chevrolet Impala, which is down 31.8 per cent. "This action will help maintain more stable production", the No 1 United States 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 percent once operations resume, the WSJ reported. US sales of the Buick LaCrosse are off 21 percent this year while demand is down 32 percent for the Impala and 6 percent for the Volt. Shares were down 1.6 percent to $44.74 at 10:41 a.m.

When the factory reopens in early 2018, it will scale back production by 20 percent - or about 200 workers.

GM and its peers have been cutting production at auto plants as consumers have rapidly shifted to buying sport utility vehicles.

The Wall Street Journal first reported GM's production cuts earlier Thursday. Following this lay off, alternative work was found for the 2,900 hourly workers that were affected but production cuts can help automakers avoid deeper price cuts on cars they can sell.

GM has reduced the number of shifts at five of its plants and several other facilities. Along with that announcement, GM said it planned to layoff around 1,200 employees at the plant.

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