GM May Unload Six Cars in United States to Make Way for Crossovers

Paterniano Del Favero
Luglio 22, 2017

GM is considering producing more trucks and SUVs while killing off six slow-selling models produced at underused vehicle plants such as Hamtramck in MI and Lordstown in Ohio.

"We are talking to (GM) right now about the products that they currently have" at underused auto plants such as Hamtramck in MI and Lordstown in OH, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it [and] we are addressing it".

GM has cut shifts at several US plants this year to offset rapidly deteriorating auto sales.

With the overall US auto market expected to decline this year to less than 17 million units, analysts said GM may have too many passenger vehicle nameplates and too many underused assembly plants.

Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Right in the storm of this vehicle slump is GM's Hamtramck plant in MI, which makes the LaCrosse, Impala, CT6, and Volt.

Even as President Donald Trump promotes job creation in the US auto industry, Detroit-based GM may have to further slash production of sedans and build them at fewer USA plants, analysts said.

Morgan Stanley analyst John Murphy has already predicted a major change for GM's lineup in the next four years.

A GM spokesman told Motor Trend that the company can not comment on future plans for its products or plants. And while things might look full of gloom and doom for GM sedans according to analysts, General Motors seems much more confident in its sedans and factory operations.

GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants", said Sam Fiorani, vice president of AutoForecast Solutions.

Batey said GM intends to reduce overall inventories to around 75 days by year-end from 105 now. "We're in a good place to have a good 2017".

The shift toward SUVs, fueled by cheap gasoline, is putting pressure on almost all major automakers in the United States to simultaneously shift short-term production plans and rework long-term product programs that drive capital spending over several years.

GM produced 35,000 cars in the first half of this year, down 32 percent compared to the first half of last year.

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