GM Layoffs May Not Be Over

By Douglas A. McIntyre Updated Jan 12, 4:36PM EST · Published Dec 20, 8:45AM EST

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GM Layoffs May Not Be Over — © General Motors Co.

[cnxvideo id=”507123″ placement=”ros”]General Motors Co. (NYSE: GM) has just laid off 1,300 workers as demand slows for its small sedans and coupes. The company laid off 2,000 in November. The blame can be put on “days to turn,” or how long cars sit in inventory. Dealers currently have cars they have been unable to sell for three months or more.

Based on inventory, a research firm has put days to turn for GM’s Buick, Cadillac and Chevy all above the industry average. Only truck and sport utility vehicle division GMC is below that average. And it is SUVs and trucks that have had a surge in sales.

Likewise, sales of some of GM’s most popular cars are down sharply. In the Buick division, LaCrosse sales are off 36% to 24,756 through the first 11 months of this year. Enclave sales are off 14% year over year to 48,225. In the Chevy division, Cruz sales are off 18% to 171,552. Equinox sales are off 16% to 215,000.

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Many in the industry would argue that GM did not see the huge change in gasoline prices coming. Small, fuel-efficient cars are no longer a way to save the small fortune on gas costs as when a gallon was above $3 and headed toward $4.

GM factory workers have reason to continue to worry about employment in 2017.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.