GM to lay off 1.500 people in small car production
Last week General Motors (GM) announced it will have to lay off some 1.500 of its staff working in small car production as Americans are turning away from small cars in favour of big SUVs, crossovers and pickup trucks. Fuel at the pump still being cheap in the US.
One of the factories that are to be concerned is the one in Lordstown, Ohio, where the Chevrolet Cruze is built exclusively for the US market by 3.000 workers. Sales of the sedan plunged by 32% last four years and are believed to fall back with 28% this year, according to Autodata.
Market declining constantly
“The market for small cars is declining constantly since 2014 and we have to lower production for several weeks to be in balance with demand”, GM says. Nevertheless compact cars are still 38% of sales in the US, although decline is around -13,2% since the beginning of the year. Last year GM sold 150.000 Cruzes in the US.