Report

GM reportedly will cut production at Detroit-area plant, lay off 1,500

Hamtramck plant will close for six weeks, then reopen with lower production.

General Motors plans to scale back production at an assembly plant in Detroit and lay off about 1,500 workers, the Wall Street Journal reported on Thursday, citing sources familiar with the plan.

The No. 1 U.S. carmaker plans to shut the Detroit-Hamtramck factory for about six weeks from mid-November, and cut production by roughly 20 percent once operations resume, the WSJ reported.

The move will cost about 200 workers their jobs, the WSJ reported.

General Motors declined to comment. Reuters reported in July that GM was considering killing models or cutting production of sedans, many of them built at Hamtramck. Both GM and rival Ford have struggled for most of this year to rein in high inventories of passenger cars as consumers have shifted to buying pickup trucks and sport utility vehicles.

Production cuts slice into revenue, but could also helps automakers avoid deeper price cuts on vehicles they can sell.

General Motors shares were down 1.7 percent at $44.70 in premarket trading.

Reporting by Rachit Vats and Nick Carey

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