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GM to cut production at Detroit auto plant

12 October 2017

According to the Wall Street Journal, roughly 1,500 workers will be affected at GM'S Detroit-Hamtramck assembly plant, which produces four vehicle models that are seeing sluggish demand: the Buick LaCrosse, the Cadillac CT-6 sedan, the Chevrolet Volt plug-in hybrid, and the Chevrolet Impala.

GM won't comment on specific production plans, but did say it intends to keep current production in line with demand. While the temporary layoff affects nearly 1,500 workers, when operations resume, 200 employees will be out of a job.

The Hamtramck plant makes four sedan models that have not been performing well. Earlier this year, GM laid off workers when it eliminated a late shift. They include the Buick LaCrosse, sales of which are down 21.5% year to date, and the Chevrolet Impala, which is down 31.8%. With supply swelling, manufacturers have sought to curb production. The automaker announced last month that it would cut the third shift at its plant in Spring Hill, Tennessee, as of late November.

GM confirmed Thursday that it will idle its Detroit-Hamtramck plant for six weeks, starting later this year, and slow production at the plant overall.

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Following the temporary shutdown, GM will slow the assembly line by 20 percent and dismiss 200 workers, said the person, who asked not to be named because employees hadn't yet been informed of the decision.

GM has found alternative work for 2,900 affected hourly workers.

General Motors shares were down 1.2% at $44.92 in late morning trading.

GM to cut production at Detroit auto plant