GM to close Detroit passenger auto factory for 6 weeks

General Motors reportedly will scale back production at a Detroit assembly plant though the end of the year.

Once production resumes at the end of the downtime, the company will reduce production by about 20 percent at the plant.

The Hamtramck plant makes four poorly performing sedan models, including the Buick LaCrosse, sales of which are down 21.5 per cent year to date, and the Chevrolet Impala, which is down 31.8 per cent. The Detroit-Hamtramck plant builds Chevrolet Voltand Impala, Cadillac CT-6 and Buick LaCrosse vehicles.

While U.S. sales of the Cadillac CT6 are up 51 percent to 8,128 this year through September, the flagship luxury sedan is a low-volume seller.

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General Motors shares were down 1.7 percent at $44.70 in premarket trading. GM has slashed passenger-car production in the past year, laying off almost 3,000 workers and transferring some to plants making SUVs, the Journal said.

GM, like Ford and other automakers, is realigning production as consumer demand shifts markedly from passenger cars to SUVs and trucks. Large sedan sales have been hardest hit in reason years by consumer shifts to crossovers, leading GM to have ballooning inventory of those models.

Production cuts slice into revenue, but could also helps automakers avoid deeper price cuts on vehicles they can sell. This follows the elimination of a full shift, roughly 1,300 autoworkers, earlier this year. The carmaker announced last month that it would cut the third shift at its plant in Spring Hill, Tennessee, as of late November.

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