General Motors Company (NYSE: GM) will extend summer shutdowns at some of its U.S. factories in respond to the declining sedan sales. The normal summer shutdown is two weeks to prepare to release new models. General Motor is faced with relatively high levels of inventory after running production lines at high rates.
The Lordstown, Ohio, plant near Cleveland and and the Fairfax plant in Kansas City, Kansas, will shutdown for five weeks in June and July, according to Union officials. The Lordstown plant makes the Chevrolet Cruze compact sedan, and the Fairfax produces the Chevrolet Malibu midsize car.
The company confirmed that some of its car factories would be closed longer than normal two-week shutdown but would not disclose details.
According to Autodata Corporation, U.S. car sales decreased 11% in May, compared to the 5% increase in truck and SUV sales. Overall demand for cars is slowing down after seven years of increase.
Jim Cain, the spokesperson of GM, said that the company’s full-size pickup truck factories would have longer-than-normal summer shutdowns because of their switching over to an all new truck for 2018, but he did not comment on the details of the shutdowns.