GM Small-Car Plant in Michigan Drops a Production Shift

General Motors Co. is cutting production from two shifts to one at its Orion Township factory outside Detroit because of declining demand for the Chevrolet Sonic and Buick Verano small cars it makes.

Dealer stocks of unsold Sonics have ballooned to 116 days, about double the normal level, according to Automotive News. Verano inventories rose to 100 days from 81 days a month ago. The slump reflects shifting market demand from small economy cars to larger crossovers and SUVs.

AN says sales of Sonic and Verano models through the first nine months of the year dropped 35% to 50,500 units and 27% to 25,000 units, respectively.

Dropping a shift at the Orion plant will eliminate about 500 jobs, according to GM. The company says most of the affected workers should be able to transfer to the company’s Detroit-Hamtramck plant. That facility will add a second shift in early 2016 to make Chevrolet Impala and Malibu sedans, Chevy Volt plug-ins, and Cadillac ELR electric coupes and CT6 large luxury sedans.