General Motors will eliminate one of the production shifts in Michigan where they are assembling the ATS and CTS.

General Motors will eliminate one of the production shifts in Michigan where they are assembling the ATS and CTS.

The announcement was made earlier this week by company spokesman Bill Grotz and this decision is part of Cadillac's president Johan de Nysschen plan to eliminate excess production to better match demand, a problem which has led to high inventory levels over the last year. As a consequence, production at the Lansing Grand River plant in Michigan will be reduced to only one shift.

Starting January 2015, approximately 350 workers will be laid off so the number of employees will be diminished to around 1,075 people. Grotz specified the remaining shift will produce more cars than before while the second shift will likely be reintroduced at the arrival of the next-gen Chevrolet Camaro which will be produced in Michigan unlike the current gen assembled in Oshawa, Canada. Sources cited by Automotive News are saying the new Camaro is scheduled to go into production towards the end of next year as a 2016MY.

As a final note, one of the reasons for the CTS's decreasing demand has to do with the fact that some dealers have jacked up the price of several versions by $10,000 which has made some returning clients reorient to another brand.

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Slow demand for ATS and CTS forces Cadillac to eliminate one production shift