GM will extend summer shutdown at two U.S. car plants due to slow sedan sales
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AutomotiveAs reported by the Associated Press, union officials say the Lordstown plant, which makes the Chevy Cruze, and the Fairfax plant in Kansas City, which makes the mid-size Chevy Malibu, will close for as many as five weeks.
Automaker General Motors is extending its normal two-week summer shutdown for at least two U.S. car factories because of declining sedan sales.
As reported by the Associated Press, union officials say the Lordstown, Ohio plant and the Fairfax plant in Kansas City, Kansas, will close for as many as five weeks in June and July. GM confirmed to the Associated Press that some car factories would be shut down longer than usual but would not give details. The Lordstown plant makes the Chevrolet Cruze compact sedan, while workers at the Fairfax facility build the Chevrolet Malibu midsize car.
The Lordstown plant has about 3,000 hourly and salaried workers. Last year GM suspended the third shift at the plant indefinitely as demand dropped. The Fairfax plant has about 3,500 workers.
It was unclear whether other GM plants will see extended summer shutdowns, which normally happen over the July 4 holiday as factories switch to the next model year.
According to industry analyst Ward’s Automotive, GM dealers have enough Cruzes to handle 87 days worth of sales, while they have 67 days worth of Malibus. Automakers consider a 60-day supply optimal to give customers adequate choices, Ward’s said.
