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GM Lordstown production downtime coming
By Kalea Hall
YOUNGSTOWN
The General Motors Lords-town Complex is scheduled to have an additional three weeks of downtime scattered over September and October.
The downtime is reportedly to adjust production to the slowing demand for the Chevrolet Cruze, a compact car, and also because of an issue with a supplier that will constrain production.
Specifics on the supplier constraint were not revealed.
“We had some time already set aside for down weeks,” said Glenn Johnson, president of United Auto Workers Local 1112, representing the assembly plant workers. “Rather than use them later on, they will use them now. We have some things going, and we want to protect our customers at all cost.”
The scheduled down weeks are Sept. 11, Sept. 25 and Oct. 2.
“Everything in our world is subject to change,” Johnson said.
Earlier this year, GM said there would be several down weeks in 2017 to adjust supply with demand.
In March, the plant was down for three weeks. There was a scheduled two-week vacation at the end of June, and three weeks of extended shutdown were added to Lordstown’s schedule in July.
Consumers’ switch from cars to crossovers and sport utility vehicles has hit sales of the Cruze and other cars hard.
In August, sales of the sedan and hatchback Cruze were down 26.1 percent over the previous year, and in July, sales were down 10.5 percent year-over-year.
Also impacting Cruze sales is GM’s plan to cut back on fleet sales to keep the resale values up.
“They are focused on cutting down daily rental cars and doing things that will support higher resale values,” said Michelle Krebs, senior analyst for Autotrader. “It makes it better for people who buy that and trade them in.”
Analysts don’t see an end in sight for the trend of crossovers and SUVs.
“I know car sales aren’t where we liked them to be, but at the same time, we have a lot going on as a complex,” said Robert Morales, president of UAW 1714, representing the fabrication plant workers.
The 3,000 employed at GM Lordstown are in the process of trying to meet benchmarks the company has put in place.
“Production is going great, and we are really proud of the work they are doing every day,” Johnson said.
Sales aren’t slowing for the Cruze’s top competitor, the Honda Civic. Last month, the Civic reported a 7.1 percent increase in its sales, and in July, the compact car’s sales increased 15.8 percent.
“They just have a strong reputation in those segments,” Krebs said. “They have built up a very strong loyalty over time.”
But the Cruze has been noticed as a top competitor in the small-car segment. The Cruze was judged as one of the safest vehicles on the road by the National Highway Traffic Safety and Administration. The NHTSA gave the compact car a 5-Star safety rating.
J.D. Power’s study for Automotive Performance, Execution and Layout ranked the Cruze in fifth place in the small-car segment, up from 18th place last year. This was the second-largest APEAL improvement in the industry.
Earlier this year, Consumer Reports selected the Cruze as a “Top Pick.” The Cruze is the first domestic compact car in more than a decade to receive the “Top Pick” title. From 2013 through 2016, the Subaru Impreza took the title.