General Motors to Trim Production at Two Car Plants

Published Date : Feb 26, 2015

General Motors is cutting down the production at two of its car plants amidst rising dealer inventories, an effort to decrease stocks of the Camaro and Chevrolet Sonic, Buick Regal and other models.

This week, General Motors scheduled downtime for March 9 to March 13 at its Orion Assembly plant in suburban Detroit, where the Buick Verano and the Sonic small cars are produced, to adjust supply to demand, according to a facility worker and another person with knowledge of the schedule.

The Orion plant also was inactive last week and earlier it had scheduled a down week for April 6 to April 10, also to trim excess inventory. Meanwhile, the Flex line at GM’s Oshawa, Ontario, plant will be idled April 13 to April 17, cutting production of the Camaro sports car, Regal sedan, Cadillac XTS sedan and Chevy Impala, one of the sources said.

The cutbacks come as car sales cool amid lower gasoline prices while demand for trucks and crossovers grows. Most of GM’s production trims are for nameplates that are well into their life cycles and due for redesigns within the next year or two. Inventories on most of them have grown in recent months.

On February 1, 2015, there was a 216-day supply of Sonics on dealer lots or on the way to stores, the highest inventory level since the subcompact debuted in August 2011, according to the Automotive News Data Center. The Regal had a 213-day supply, up from 96 days on January 1, 2015. Camaro inventory was 131 days, up from a month earlier but lower than at the same time in 2014.