GM to idle 2 US plants to adjust output to demand

Article by Andrew Christian, on March 2, 2015

General Motors is reducing output of at two assembly sites as dealers see their lots filled with unsold Chevrolet Sonic and Camaro, Buick Regal and other models. GM will temporarily stop production at Orion Assembly plant in suburban Detroit – which builds the Sonic and Buick Veranos – from March 9 to 13 to adjust supply to demand, according to a site worker and another person privy with the schedule.

The site was recently idled this month and was set for a downtime from April 6 to 10 to reduce excess inventory. GM also plans to idle its “Flex” line at its Oshawa site in Ontario from April 13 to 17, which should trim the output of the Camaro sports car, Regal sedan, Cadillac XTS sedan and Chevy Impala, according to one of the sources.

The production cuts come as sales of cars starts to cool down because of lower fuel priuce and as demand for trucks and crossovers continues to surge. Most of the affected nameplates are those that well into their life cycles and are due for redesigns within the next year or two.

As of Feb. 1, 2015, dealers had a 216-day supply of Sonics on their lots, according to the Automotive News Data Center. As of Jan. 1, 2015, dealers had a 213-day supply of the Regal and a 131-day supply of the Camaro.

Inventory of other nameplates as of Feb. 1, 2015 were: 109 days for the XTS, 92 days for the Verano and 65 days for the Impala – all which were not substantially higher than in recent months.

Topics: gm, production

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