GM to cut production at Orion Township plant
13 Jun 2015
General Motors would cut production of Chevrolet Sonics and Buick Veranos at its Orion Township assembly plant, laying off around 100 workers from July through the end of the year.
Sales of the Sonic through May were down 28.5 per cent from the first five months of 2014, while Verano sales slipped 15.6 per cent in the same period.
According to GM spokesman Christopher Bonelli who declined comment on the specifics of the production cut, the company was "adjusting production capacity to better meet market demand."
The company invested $545 million on retooling the plant so it could build the Verano and Sonic, which started rolling out in 2011. GM earlier imported the Sonic from South Korea.
The latest layoffs come in addition to the 160 GM announced last November at Orion Assembly.
US consumers continue to prefer SUVs and pickup trucks over sedans, and small cars, as gasoline prices remain low.
According to a GM spokesman, the company needed to match supply with demand.
GM executives had said often the company did not want to repeat the mistake of producing more vehicles than consumers were buying, which was one of the factors that led to the company's 2009 bankruptcy and restructuring.