GM Cutting Production on Slow Sales

GM Cutting Production on Slow Sales

Increasing dealer inventory is forcing GM to curb production at two of its facilities. 

The American automaker has scheduled five days of downtime at the Orion Assembly plant in Detroit, where the Chevy Sonic and Buick Verano are built, to adjust supply to demand according to The ‘flex’ line in Oshawa, Ontario will also be idled for five days to cut down supply of the Chevy Camaro, Buick Regal, Cadillac XTS and Chevy Impala.

SEE ALSO: Four-Cylinder Engines Now Account for 46 Percent of GM Sales

Inventory on most of these models has gone up in recent months, with the XTS sitting at a 109-day supply, the Verano stocked for 92 days and the Impala sitting at a 65-day supply.

GM has been quick recently to avoid large inventory backups that require dealers to offer heavy discounts which hurt profits and resale value.

[Source: Automotive News]

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