GM dropping production at Cadillac plant to match supply with demand image

General Motors has moved to axe one of the production shifts at the Michigan assembly facility where the carmaker outputs the premium Cadillac ATS and CTS models.

This is one of the first moves from new brand chief Johan de Nysschen, which has said he would aggressively pursue matching production and inventories of the brand to the customer demand. High production numbers and excess inventories were a plague for Cadillac for much of the past year. According to GM, its Lansing Grand River plant will move from two shifts to just one – with 350 jobs being slashed in the process, since January. Bill Grotz, a General Motors spokesperson, said the company is attempting to move some of the outgoing personnel to one of the company’s two other factories in the area. Also, the remaining production line would speed up assembly to build more vehicles on a single shift.

General Motors has been constantly battling excess inventory when it comes to the ATS and CTS models, with sales dropping below forecasted levels – dealers blame price hikes of $10,000 or more operated when the CTS was redesigned for the 2014 model year. The company spokesman also added that the plant would return to a two-shift production when GM completes the Camaro relocation from the current production site in Canada.

Via Automotive News