HAMTRAMCK (WWJ) – Sluggish gross sales of passenger automobiles are prompting Common Motors to vary its manufacturing plans at an enormous meeting plant.
GM confirmed Thursday that it’ll idle its Detroit-Hamtramck plant for six weeks, beginning later this yr, and sluggish manufacturing on the plant general. This follows the elimination of a full shift, roughly 1,300 autoworkers, earlier this yr.
Autotrader analyst Michelle Krebs says that is the results of shoppers shifting towards sport utilities and away from passenger automobiles
“Automobiles like these made on the Detroit-Hamtramck plant — Malibu, Impala, the Cadillac CT6 — these are dropping favor with shoppers who need SUVs,” she stated.
As shopper attitudes shift, automakers don’t need to be caught with a bevy of undesirable passenger automobiles.
“What we’re seeing is a decline in gross sales of these automobiles and automakers, as an alternative of continuous to pour wealthy incentives on them, are slicing again manufacturing to decrease their inventories,” stated Krebs.
GM gained’t touch upon particular manufacturing plans, however did say it intends to maintain present manufacturing consistent with demand.