HAMTRAMCK (WWJ) – Slow sales of passenger cars are prompting General Motors to change its production plans at a big assembly plant.
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. This follows the elimination of a full shift, roughly 1,300 autoworkers, earlier this year.
Autotrader analyst Michelle Krebs says this is the result of consumers shifting toward sport utilities and away from passenger cars
“Cars like those made at the Detroit-Hamtramck plant — Malibu, Impala, the Cadillac CT6 — those are losing favor with consumers who want SUVs,” she said.
As consumer attitudes shift, automakers don’t want to be stuck with a bevy of unwanted passenger cars.
“What we are seeing is a decline in sales of those vehicles and automakers, instead of continuing to pour rich incentives on them, are cutting back production to lower their inventories,” said Krebs.
GM won’t comment on specific production plans, but did say it intends to keep current production in line with demand.