With sedan sales dropping, General Motors has been forced to seek cuts in factories that exclusively produce sedans, such as the factory in Kansas City, Kan.
General Motors (GM) will lay off approximately 1,000 workers at a sedan factory in Kansas City, Kan., driven by sharp downturns in demand for passenger cars, according to multiple news sources.
The company notified workers that the third shift at the factory would be eliminated in late September. The factory traditionally incorporates summer shutdowns, but the Wall Street Journal reported last week that the shutdown would be extended and permanent job cuts were likely.
“Lower demand for passenger cars across the industry has caused us to adjust production of some models,” said GM. As a result, the company is focusing efforts on crossover SUVs instead of sedans.
The Kansas City factory makes just one model, the Chevrolet Malibu midsize sedan, a model that saw sales fall 30 percent this year through May, while overall, midsize cars were down 14 percent, according to Autodata Corp.
Over the past seven months, GM has announced plans for more than 5,000 layoffs across several U.S. factories in response to slow passenger-car demand, though that number may be smaller as some have been able to transfer to other factories, according to a GM spokesperson.
GM to lay off 1,000 workers in Kansas factory
