The low gas prices that have benefitted sales of full-size pickups and SUVs has also cut demand for small cars and as a result forced General Motors to lay off 510 hourly workers at two plants in Michigan that produce small cars.
The average price for a gallon of gasoline is now $2.923 cents per gallon, according to the AAA Daily Fuel Gage as the price of gasoline dropped by almost a penny. Last month, Americans were paying $3.208 cents per gallon. The prices are part of the reason buyers are finding their way back to trucks, crossovers and SUVs, which is resulting in more production capability than demand at the sites.
The automaker is laying off 350 employees at its Lansing Grand River Assembly facility in January and 160 more at its Orion Assembly plant. The two sites produce a variety of small cars, including Cadillac ATS and CTS in Lansing and the Buick Verano and Chevy Sonic in Orion. (more…)