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GM Lordstown Assembly Cuts Second Shift as Chevrolet Cruze Sales Plunge

Operational since 1966, the Lordstown Complex is among the highest-volume, single-line vehicle assembly facilities in the world. The home of the Chevrolet Cruze has seen better days, with dwindling demand forcing General Motors to throttle back from two to one shift. What does this mean in terms of workforce?
2019 Chevrolet Cruze 5 photos
Photo: Chevrolet
2019 Chevrolet Cruze2019 Chevrolet Cruze2019 Chevrolet Cruze2019 Chevrolet Cruze
The elimination of the second shift could affect an estimated 1,500 jobs at the 3,000-strong assembly plant. Effective June 18, the cutback comes as a result of a steady decline of the small car segment in the United States of America. Consumer demand started shifting toward crossovers, SUVs, and trucks at a rapid pace since 2014. Based on sales, conventional-bodied cars will continue to play second fiddle.

The compact-sized Cruze, offered as a sedan and five-door hatchback with gasoline and diesel-fueled engine options, is one of the affected population of vehicles. Sales decreased 2.2 percent last year, with deliveries nose-diving 26 percent through March 2018. Hoping that all is not lost, Chevrolet refreshed the Cruze for the 2019 model year, but it’s hard to imagine people will change their minds because of it.

In a statement on Lordstown, General Motors explains that the passenger car market remains crucial to the automaker “since it represents 36 percent of industry retail sales. The small-car segment also brings new and conquest customers to Chevrolet.” And that’s the cold, hard reality of the automotive industry. Regardless of how competitive the vehicle may be, consumer demand is the ultimate demand.

Last year, Lordstown lost the third shift, bringing employment down from 4,000-plus to 3,000 jobs. Sales-wise, the Cruze peaked at 273,060 units in the year 2014, dropping 17 percent the following year. In 2017, sales plunged again to 151,026 examples. Including the Mexico-built Cruze hatchback, total sales number 184,751.

In addition to consistently cheap fuel and increased fuel economy, the pricing of a passenger car and a crossover is getting ever closer. While small, efficient cars will always be welcome, the reality is that utility vehicles and pickups are more lucrative for American manufacturers in this part of the world, at least for the time being.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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