GM to shut Detroit factory for 5 weeks to control inventory

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GM to shut Detroit factory for 5 weeks to control inventory

General Motors plans to idle its Detroit-Hamtramck assembly plant for six weeks, according to a new report.

The Detroit-Hamtramck plant will likely produce 20 percent fewer vehicles once production resumes in 2018, the Journal said.

Meanwhile, Reuters reported Wednesday that GM has warned a striking Canadian labor union that if it doesn't call off a monthlong walkout, the automaker will shift production of the top-selling Chevrolet Equinox SUV to Mexico.

Earlier this year, GM eliminated the plant's second shift, saying it was laying off around 1,200 workers.

USA sales have slowed for all automakers this year - notably in the category of passengers cars, as customers have preferred SUV and crossover models, as well as light trucks. They include the Buick LaCrosse, sales of which are down 21.5% year to date, and the Chevrolet Impala, which is down 31.8%. The automaker announced last month that it would cut the third shift at its plant in Spring Hill, Tennessee, as of late November.

GM and its peers have been cutting production at auto plants as consumers have rapidly shifted to buying sport utility vehicles. GM is also expected to let 200 workers go when production is cut next year. "This action continues to show that GM remains price disciplined" by cutting production instead of increasing incentives.

GM has found alternative work for 2,900 affected hourly workers. Shares were down 1.6 percent to $44.74 at 10:41 a.m.

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