The company already slowed assembly lines in January as low gasoline prices held back sales of small cars. Summer shutdown was then extended by an extra week, but the interruption appears to have failed to slow inventory growth.
Gas prices partially recovered between February and July, before sliding back down in August and September. Sonic sales collapsed last month, dropping by 55 percent compared to September 2014, while Verano deliveries fell by 39 percent.
To further correct the oversupply, GM will end the second shift at Orion. Only the first shift will continue building both models. Approximately 500 hourly workers will be affected, though most will be reassigned to help add another shift at the Detroit-Hamtramck plant.
“We are confident we will be able to make transfer offers to Detroit-Hamtramck or other GM locations for the vast majority of those who are affected by the shift reduction,” spokesman Bill Grotz said in a statement to The Detroit News.
The Detroit-Hamtramck factory currently builds the Chevy Volt, Impala and Malibu, along with the Cadillac ELR, all on the same production line. It will also be used to produce the Cadillac CT6 early next year.
Leave a Reply