DETROIT Dec 19 General Motors Co will
shut five U.S. auto assembly plants for varying durations in
January, primarily to cut oversupply of sedans which have fallen
out of favor among U.S. consumers.
GM confirmed on Monday information from sources at the
United Auto Workers union who said that the five plants will
GM had built up inventory recently and will be cutting back
on that supply after the end of the current year. In October
when it reported third-quarter earnings, GM said it has
increased its U.S. dealer inventory by 111,000 vehicles.
GM at end-November had 84 days of U.S. supply of unsold new
vehicles, up from 79 days at the end of October. GM said that
days supply figure would "fluctuate before moderating at
A company spokesman said on Monday that it is targeting
about 70 days of inventory.
Several Wall Street analysts, including Brian Johnson of
Barclays, have said that if GM plants close to level out its
inventory, it would pressure GM shares.
At about midday Monday, GM shares were down about 0.4
percent at $36.24.
Shut for three weeks will be the Detroit-Hamtramck plant in
Michigan and the Fairfax factory in the Kansas. Down for two
weeks will be the Lansing Grand River plant in Michigan, and
down for a single week each will be the Lordstown plant in Ohio
and the Bowling Green factory in Kentucky.
In November, GM announced the layoff of about 2,000 workers
with the suspension of third shifts at the Lordstown and Lansing
Grand River plants, also in January.
The Lordstown plant builds the compact Chevrolet Cruze, and
the Lansing plant manufactures the Cadillac ATS and CTS. Sales
of each of those models are down about a fifth from year-ago
The January shutdowns were reported earlier by The Detroit
(Reporting by Bernie Woodall; Editing by James Dalgleish)