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

Lloyd Doyle
October 12, 2017

General Motors (GM) will reportedly cut production at a Detroit-area plant in response to sluggish demand for passenger cars.

The Detroit-Hamtramck plant will likely produce 20 percent fewer vehicles once production resumes in 2018, the Journal said.

The Wall Street Journal is reporting this morning that GM will shut down the plant in mid-November for six weeks.

That reduction in output will cost about 200 workers their jobs.


US sales have slowed for all automakers this year - notably in the category of passengers cars, as customers have preferred SUV and crossover models, as well as light trucks. Sales of the Buick LaCrosse were are down 21.5 percent year to date, and the Chevrolet Impala is down 31.8 percent, reports Reuters. With supply swelling, manufacturers have sought to curb production.

GM has already cut deep at the Detroit-Hamtramck plant, including shedding its second shift entirely earlier this year.

GM has reduced the number of shifts at five of its plants and several other facilities. A spokesman said the company has let go 2,300 temporary workers and 800 of its hourly, union-represented workers have been laid off, for a total of 3,100 job cuts so far. GM has slashed passenger-car production in the past year, laying off almost 3,000 workers and transferring some to plants making SUVs, the Journal said. "This action continues to show that GM remains price disciplined" by cutting production instead of increasing incentives.

Shares of GM fell 1.4% to 44.82 on the stock market today, easing from the post-bankruptcy high of 45.59 set in Wednesday's session but still in profit-taking sell territory.

Other reports by Iphone Fresh

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