General Motors Co. (NYSE: GM) has just laid off 1,300 workers as demand slows for its small sedans and coupes. The company laid off 2,000 in November. The blame can be put on “days to turn,” or how long cars sit in inventory. Dealers currently have cars they have been unable to sell for three months or more.
Based on inventory, a research firm has put days to turn for GM’s Buick, Cadillac and Chevy all above the industry average. Only truck and sport utility vehicle division GMC is below that average. And it is SUVs and trucks that have had a surge in sales.
Likewise, sales of some of GM’s most popular cars are down sharply. In the Buick division, LaCrosse sales are off 36% to 24,756 through the first 11 months of this year. Enclave sales are off 14% year over year to 48,225. In the Chevy division, Cruz sales are off 18% to 171,552. Equinox sales are off 16% to 215,000.
Many in the industry would argue that GM did not see the huge change in gasoline prices coming. Small, fuel-efficient cars are no longer a way to save the small fortune on gas costs as when a gallon was above $3 and headed toward $4.
GM factory workers have reason to continue to worry about employment in 2017.
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