General Motors announced it will lay off the third shift at its Spring Hill, Tennessee assembly plant in November due to curbed new-vehicle demand in the United States.
The third shift employs about 1,000 workers, but not all will be laid off, according to The Detroit Free Press. GM is still working out the final details as to how many workers will stay on the job after November 27. GM said the layoffs are indefinite as well.
The GM Spring Hill plant builds the Cadillac XT5 and the second-generation GMC Acadia. Per the report, the automaker currently has a 105-day supply of the Acadia and a 68-day supply of the XT5. GM has been working to improve its overall inventory situation this year, which has climbed past the 60-day supply mark considered to be the healthy benchmark industry-wide. In August, GM’s inventory levels were at 88 days, which was down from a 104-day supply in July.
Despite a hot crossover market, GM said overall demand is beginning to slow, and sales of new cars in the U.S. were down 2.7 percent in the month of August. GM’s
Even though crossovers make up a larger share of the industry now, overall volumes are moderating,” GM spokesperson Tom Wickham, said.
In the near future, the Spring Hill plant will receive a new product, with GM having confirmed a $294 million investment into the facility to build a new Cadillac crossover. This will likely be the upcoming Cadillac XT6 three-row CUV based on the extended-length C1 platform (a shorter variant of the architecture underpins the XT5 and Acadia. The compact Cadillac XT4 will likely be assembled at the GM Fairfax plant in Kansas.