GM Extends Plant Shutdowns As Toxic Trifecta For Auto Loans Fuels Carmageddon

Jon Banking

In yet another unsurprising headline, The Wall Street Journal reports that GM will extend the typical summer shutdown at certain U. S. factories to deal with slumping sales and bloated inventory, a sign the industry’s hot streak is grinding to a halt.
The No. 1 U. S. auto maker in terms of sales will idle its Chevrolet Malibu factory near Kansas City for five weeks starting in late June, Vicky Hale, president of the United Auto Workers Local 31, said. Job cuts will be needed if GM is forced to slow assembly-line speeds when those workers return.
Additional downtime is also slated in Lordstown, Ohio, a small-car factory already stung by deep layoffs related to a pullback in demand for passenger cars. A GM spokesman declined to comment on specific plans.
GM enters the summer with a glut of unsold inventory after running production lines at relatively high rates to prepare for factory downtime related to plant upgrades. WardsAuto.com estimates GM’s production increased 2.9% over the first four months of 2017, even as the broader industry pulled back.

This post was published at Zero Hedge on Jun 14, 2017.