General Motors is getting rid of one production shift at its Lansing Grand River site in Michigan that builds the Cadillac ATS and CTS. GM spokesman Bill Grotz confirmed the cut from two to one shift, which should see a layoff of around 350 workers starting January 2015. He said that some of the affected workers will be moved one of its two other sites nearby.
Once the cut is implemented, the site will only have 1,075 production workers on one shift. Grotz quipped that line speed will be made faster to produce more vehicles on the remaining shift. GM expects to resume a second shift when its starts building the next-generation Camaro.
Sources have told Automotive News production of the new Camaro is set for late next year or early 2016. The next-gen Camaro will be underpinned by the same platform that underpins the ATS and CTS, despite continued high inventories for the models.
Many dealers say that price hikes of $10,000 or more on several CTS models have discouraged some returning customers from making a purchase. On Nov. 1, ATS models had a 151-day supply while CTS models had a 113-day supply – helped by heavy incentives offered last month aimed at help clear inventories.
The decision to cut production is in line with new brand chief Johan de Nysschen's pledge to create more “product exclusivity” for Cadillac and avoid the need for heavy incentives.
He remarked to Automotive News in September that it is better to build a solid base in terms of product credibility and charge a fair price for the car than aiming for high volume and lower the tag.