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GM LaysOff Shift In Detroit, Ford Shutting Kansas City Plant for a Week


12/21/2016


GM LaysOff Shift In Detroit, Ford Shutting Kansas City Plant for a Week
To match production and demand, Ford Motor Co will close its Kansas City, Missouri pickup truck and van plant for a week in early January, the automaker said.
 
F-150 pickup trucks and Ford Transit vans are made at the plant. A couple of months ago, Ford also closed the Kansas City plant for a week.
 
It was just a day ago that for one to three weeks GM announced it was closing five U.S. plants, mainly ones that make light-selling sedans, in January 2017. Ford’s announcement followed GM’s closure announcement.
 
In addition to the closure plans, sometime late on Monday, GM also said that it would cut the second shift at its Detroit-Hamtramck plant and the company would lay off about 1,300 plant workers in March. The Detroit-Hamtramck plant makes three sedans: the Chevrolet Impala, Cadillac CT6 and Buick LaCrosse and the Chevrolet Volt plug-in hybrid.
 
While U.S. consumer appetite for sedans has waned in the past few years in favor of SUVs and pickup trucks, they remain essential for most auto manufacturers.
 
"General Motors will explore placement opportunities at other GM facilities for those affected by this decision," the company said in an emailed statement.
 
In November, GM announced that it would eliminate a shift each at plants in Lordstown, Ohio and Lansing, Michigan in January, which would result in layoffs for 2,000 employees and the new announced layoffs are on top of the 2,000.
 
Ford said in an emailed statement on Tuesday that the single week shutdown of the Ford Kansas City plant will allow "time to perform maintenance" of the machinery at the factory.
 
There were 108 days of Transit inventory at the start of this month, up from 82 days a month earlier, data from the Automotive News, which reported the Kansas City shutdown earlier on Tuesday shows. The only U.S. plant that makes the Transit van is the Kansas City plant.
 
With sales up nearly 60 percent this year through November, the Volt has been well-received among electrified vehicles. However, at about 2,500 in U.S. sales in November , it remains a low-volume niche product.
 
Automotive News data shows that inventory data for the Cadillac CT6 it was 111 days and inventory data for the Buick LaCrosse shows a lofty 168 days of supply and U.S. sales of the Impala are down 20 percent this year.
 
The data shows that GM was holding 86 days supply, from 84 days a month earlier, and overall, Ford held 83 days of U.S. vehicle supply at the star to this month, down from 90 days a month earlier.
 
On the other hand as Volkswagen took new steps to put its emissions cheating scandal behind it,  the German automaker agreed to a $1 billion settlement to fix or buy back another 80,000 polluting diesel vehicles sold in the United States.
 
Volkswagen has now agreed to spend as much as $17.5 billion in the United States to resolve claims from owners as well as federal and state regulators over polluting diesel vehicles and the settlement deal covered luxury VW, Audi and Porsche vehicles with 3.0-liter engines.
 
(Source:www.reuters.com) 


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