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GM to cut more than 1,000 US jobs tied to small cars

AFP  |  New York 

will cut more than 1,000 jobs in the US tied to production of that are in low demand, the automaker said today.

The cuts will affect in Lordstown, Ohio, where the biggest US automaker produces the Sales of the vehicle have dropped 32 per cent in the last four years, the company said, part of a broader trend in the US that has seen consumers ignore small cars in favour of sports utility vehicles and larger "crossover" cars amid low gasoline prices and a recovering economy.

The plant, which currently employs around 3,000 people, has built cars in two shifts. The ramp-down follows an "historic" shift in the market, a GM said in an email.

"As we look at the market for compact cars in 2018 and beyond, we believe a more stable operating approach to match market demand is a one-shift schedule," the said.

"Consequently, we will suspend the second shift of production at late in the second quarter of 2018." GM notified regulators that up to 1,500 jobs could be impacted by the move, with the final number to be determined in the coming weeks.

Last year, GM sold 150,000 cars in the US, all produced at Since the start of 2018, sales of the vehicle have dropped 28 per cent, according to auto consultancy and data firm

In total, sales of small US cars have fallen 13.2 per cent since the start of 2018, while sales of large cars have risen seven per cent.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, April 14 2018. 06:20 IST