GM is cutting production of Chevrolet Sonic and Buick Verano

Article by Christian A., on January 26, 2015

General Motors is lowering the output of the Chevrolet Sonic and Buick Verano small cars, which inventories have reached higher-than-normal. GM plans to idle output at its Orion Assembly plant in suburban Detroit in the weeks of Feb. 16 and April 6 to adjust supply to market demand, two people privy with the production schedule told Automotive News.

One of the sources said the company has already informed workers of the planned downtime. The production reduction comes as inventories reached their highest levels at their highest level in a year in the US -- a 127-day supply as of January 1, or 26,600 Sonics.

On the other hand, inventories of the Verano reached an 84-day supply as of January 1, or 9,800 units. The Orion site is home to around 1,800 workers. GM announced in November a plan to lay off around 160 employees at the site this month as it cuts production.

A source told Automotive News that a slowdown in the assembly line rate would cut overall output at Orion by about 16 percent, from 45 cars per hour to about 38.

According to Kelley Blue Book analyst Karl Brauer, small-car sales had on the drop even before fuel prices were declining, as more consumers choose small SUVs.

He noted that shift to small SUVs is further pushed by dropping fuel prices. GM sold 9 percent more Sonic – both in sedan and hatchback models – in the second half of 2014 to 93,518, while subcompact cars overall grew 8 percent. On the other hand, sales of the Verano dropped 4 percent, to 43,743.

If you liked the article, share on:

Comments

Recommended

Toyota Camry is many things but exciting isn’t one of its frequent descriptions. That’s why throughout the years, Toyota has been stepping up its game for the said model in...
by - May 25, 2017
Volkswagen intends to leave the crowd in awe at the Worthersee Meeting (Wortherseetreffen) – the largest VW and Audi car show in Europe – with its new GTI Worthersee concept. ...
by - May 25, 2017
The much-hyped 2018 Dodge Challenger SRT Demon certainly has attracted a lot of attention, and possibly many potential buyers. Now, here is good news for interested customers: Dodge has finally...
by - May 25, 2017
An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries