GM to cut production at Orion plant

It has been announced by General Motors that it is cutting down production of its Chevrolet Sonic and Buick Verano cars as demand in the US has fallen on the whole for smaller vehicles.

According to GM spokesman Bill Grotz, nearly two-thirds of GM's North American vehicle assembly plants will be closed during the summer months. Grotz said that earlier, for model year changeover, most plants used to shut down in early July, however now it is decided on the basis of specific vehicle lifecycle and market demand.

According to Grotz, "This approach gives us more flexibility and enables quicker response to market conditions. Shutdown periods will vary by plant based on launch timing of new or refreshed models across the portfolio and our ongoing efforts to align production with market demand".

The company will lay off nearly 100 workers at its Orion Assembly Plant outside Detroit. According to GM spokesman Chris Bonelli, the phased layoff will start in July and end by year's end.

According to the official statement from GM, the step is being taken to 'better align with the demands of the market'. There are 1,581 hourly employees and 183 salaried workers in the Orion plant.

Last November, the company made announcement regarding layoffs of 160 workers at Orion and this decision has come after that. According to Automotive News, in the first five months of 2015, Sonic sales decreased 29%. And sales of Verano decreased 16%. Subcompact car sales dropped 7.2% throughout the industry.