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GM cuts down the production of its two small cars at Orion plant

General Motors Company (NASDAQ:GM) made an announcement which calls for the cut down of production of its two small cars namely Chevrolet Sonic and Buick Verano at Orion plant. This decision has been taken by the car company after the demand in the US for small cars dropped by a fair degree.General-Motors-headquarte-006

The company is also planning to lay off around 100 workers at its Orion Assembly Plant situated outside Detroit. The layoff will initiate in July and finish by the end of the year, according to the spokesperson of GM, Chris Bonelli.

The official statement by General Motors read out that the decision has been taken aligning to the demands of the market. At this time, there are around 1,581 hourly employees and 183 workers resting on salaries.

Last November, the company announced layoff of 160 workers at the Orion plant. After that, the company did not receive anticipated sales and it plans another such week of layoffs around 4th July Holiday.

According to Chris Bonelli, the company is trying to adjust its production capacity in accordance with the demand in the market. However, he declined to comment on the specifics of the production cut by the company.

$545 million has been invested by GM in order to retool its plant for the production of Verano and Sonic. The production of both the cars had started back in 2011. In the past, Sonic was imported from South Korea by General Motors.

In the first five months of 2015, the sales of Sonic fell down to 29 percent, which was an alarming signal to the company and this might be a major cause for the cut down in production of Sonic. The sales of Verano also decreased to 16 percent.

At the Orion plant of GM, only Verano and Sonic are manufactured. However, GM is planning to invest another $160 million for the production of Chevy Bolt, which is an electric car in its prototype stage. General Motors has just started testing it with the public. The production of Orion is expected to go on floors by the year 2017.

About David Mayor

Writer and editor of The Next Digit Media, he takes care of iOS, Apple, Mac and other gadgets. He worked at Apple Inc, before joining to TND Media. He was graduated in Bachelor of Journalism & Mass Communication Degree from Cambridge University. All posts by David

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