GM to lay off 1,300 employees amid slowing car demand
The company would also temporarily cut production at some other factories in January, mostly to reduce extra inventories.
The move comes at a time when the auto industry is facing slowing pace of retail sales at auto dealerships. Also, demand for passenger cars have been slowing down as customers shift their interest to crossover sport utility vehicles and light trucks.
Reports, citing a regulatory filing to the state of Michigan, said the auto giant would eliminate the second shift at Detroit-Hamtramck factory, the assembly unit of Chevrolet Volt, Buick LaCrosse and other cars.
It will affect 493 regular production employees, 638 temporary workers, and others covered by United Auto Workers. Further, about 30 salaried workers will be transferred to other plants. These factories make cars such as sedans or compact cars.
With these measures, GM reportedly is trying to cut its inventories to 70 days worth of vehicles at the end of the month from almost 90 days' worth of vehicles as of November. ■