GM has cut shifts at several of their plants this year in response to decreased car sales. Representatives say this could be the start of larger cutbacks, resulting from shrinking production in small and mid-sized sedans. United Auto Workers (UAW) has stated they are “talking to (GM) right now about the products that they currently have” at car plants in Michigan and Ohio, and whether they might be able to produce more popular vehicles, like crossovers, at those locations. In addition, UAW has planned a “Buy American” campaign for Labor Day weekend.
GM dealers ended June with a six month supply of some of their models, which is four months more than ideal. The slump in sales, due in part to reduced gasoline prices driving up demand for larger vehicles, has impacted nearly all United States auto manufacturers. However, GM’s decline in sales for June at 36% far exceeded the industry-wide decrease of 14% for the same month.
Currently, GM is considering cutting six vehicles from their line, including the Chevy Volt, which would be replaced by a gasoline-electric crossover in 2022. The plant most likely to be impacted by these cuts is the Hamtramck plant in Detroit, which opened in 1985. Sales have been down 32% at Hamtramck from the same period in 2016.
Read more about GM’s production shifts here, and UAW’s “Buy American” campaign here.
