Once the plant resumes operations in the new year, it will likely produce 20% fewer vehicles and cost about 200 people their jobs, sources told the Journal.
General Motors Co. plans to close a Detroit factory through the end of the year and deepen production cuts to slow-selling cars the plant manufactures, idling some workers and letting go others around the holiday season in response to weak sales. The move was originally reported by the Wall Street Journal.
GM has slashed passenger-car production in the past year, laying off almost 3,000 workers and transferring some to plants making SUVs, the Journal said. Along with the large sedans, the Chevrolet Volt is also assembled at the plant.
GM and its peers have been cutting production at auto plants as consumers have rapidly shifted to buying sport utility vehicles. They include the Buick LaCrosse, sales of which are down 21.5% year to date, and the Chevrolet Impala, which is down 31.8%. With supply swelling, manufacturers have sought to curb production.
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GM has already cut deep at the Detroit-Hamtramck plant, including shedding its second shift entirely earlier this year.
A GM spokesman said there are no plans to reinstate any of those shifts at this time.
GM is not confirming details on possible layoffs as part of the reduction.
GM has found alternative work for 2,900 affected hourly workers. Shares were down 1.6 percent to $44.74 at 10:41 a.m.