General Motors will cut its workforce by 11 percent and slow production at its Orion, Michigan assembly plant amid a downturn in demand for small vehicles, according to the Wall Street Journal. The plant currently produces the Chevrolet Sonic and Buick Verano models, which experienced strong sales until gas prices began to fall in October.
Spokesman Chris Bonelli confirmed about 160 workers will be laid off starting in January, as GM doesn’t want to oversupply its dealers and have to offer heavy incentives in the future. Inventory levels of the Sonic more than doubled from a 54-day supply in September to 114-days in October, while Verano inventory increased from 77 days’ worth to 106.
The production cuts at the Orion facility will result in a capacity reduction of 18 percent, falling from 45 to 37 cars per hour. GM would not say if it would carry out similar moves at any of its other plants around the country. WSJ reports the automaker has over 100 days of supply of multiple models, including every almost every Cadillac, the Buick LaCrosse and Chevrolet Camaro and Malibu.