As sales of GM’s passenger cars in America continue to plummet, it has emerged that the brand could slash its car fleet after the 2020 model year.
Reuters has learnt from sources close to the plans that General Motors has placed six of its passenger cars under review and could cancel them after 2020. These vehicles are the Chevrolet Volt, Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic.
In the first half of 2017, General Motors car sales have fallen by 19 per cent and collapsed by 36 per cent in June alone as U.S. customers continue to buy pickups, SUVs and crossovers in record numbers. According to analysts, GM may have to close certain factories because of the dwindling demand for cars.
Arguably the most vulnerable is the Hamtramck facility in Detroit, responsible for building the Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. This year, it has built 32 per cent fewer vehicles than in the first half of 2016, churning out less than 35,000 cars. By comparison, most other GM plants build between 200,000 and 300,000 vehicles annually.
According to vice president of AutoForecast Solutions Sam Fiorani, GM has two options; “create some innovative new products” to replace its sedans “or start closing plants.”