UAW’s Sales Concerns May Result in GM Making 6 Model Cuts

Let’s just start off by saying that this situation is in its very early stages, and while there is some cause to raise a brow, it’s nothing to freak out about, yet. That being said, it is surprising to hear that GM might be in talks with the UAW about cutting six models from their lineup as a result of slumping sales and under-used plants.

There seems to be some conflict of public information over the exact state of projected sales and production at GM. General Motors has maintained that inventory levels and production capacity are strong, but the president of the UAW, Dennis Williams, told Reuters that they have been in lengthy talks about job losses due to slowing vehicle sales. Word is, shifts have already been cut and the UAW is pushing GM to address underused car plants in Michigan and Ohio.

The plants which may be at risk (if the risk is real), primarily build sedans, prompting a review of six passengers cars, and their future in the GM lineup by 2020. This would include the Cadillac CT6 and XTS, Chevrolet Impala, Volt and Sonic, and Buick LaCrosse. Losing the Impala and LaCrosse would be the most shocking, but they are said to be amongst the slower selling models made at the Hamtramck plant in Detroit.

Certain data and figures do lend some support to the idea that GM could cut some of their passenger cars, with a 17% decrease in sales in the first half of the year, and 36% decrease for June. This left GM deals with as much as a six month supply, while only having a two month supply is the standard.

Trucks and SUVs seem to be doing just fine though, with the majority of new GM models being trucks, SUVs, and crossovers. The shift towards interest in larger vehicles is nothing new. You can thank low gas prices that have been holding steady for a while now, so confidence has gone up amongst consumers since they won’t be shelling out tons of money at the pump anytime soon.

So this maybe something, could be nothing. File this under ‘wait and see’ and we’ll keep you updated if GM makes an official announcement, but in the meantime, they insist that all is well.

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