General Motors announced that it will be stopping productions at a few of its assembly factories in the United States. These factories include those that are currently producing the Chevrolet Camaro and the Chevrolet Corvette as an effort to clear out their existing inventory, revealed Torque News.
Usually, automakers try to maintain an inventory supply of approximately 70 days but seeing that some of its vehicles have exceeded that timeline, GM has called the shots at halting productions at five of its US plants.
Companies in the auto market strive to have an inventory supply level of about 70 days. This means that they would have sufficient product to last for 70 days’ worth of sales. A big inventory supply that only continues to grow will affect the business negatively.
GM’s vehicles that have surpassed the standard 70-day time frame are the Buick LaCrosse, Cadillac CT6, Cadillac ATS, Cadillac CTS, xChevrolet Impala, Chevrolet Malibu, Chevrolet Camaro, Chevrolet Volt, Chevrolet Cruze and Chevrolet Corvette.
Inventory level of the Camaro was at 177 days of worth, the Corvette at 170 days, the Buick LaCrosee at 168 days, the Cadillac CTS at 132 days, the Chevy Cruze at 121 days, the Cadillac ATS at 119 days and the Cadillac CT6 at 110 days.
So, GM will be stopping production at its Detroit Hamtramck factory where the LaCrosee, CT6, Impala and the Volt are made. It will also be idling its Fairfax Kansas plant which produces the Malibu, for up to three weeks.
Aside that, the Lansing Grand River factory, producing the ATS, CTS and Camaro will be stopped for two weeks whereas the Lordstown Ohio Plant, making the Cruze, as well as the Bowling Green Kentucky plant, making the Corvette, will be halted for a week.