Grand River Assembly Plant to Slow Cadillac Production for Three Weeks

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When people in downtown Lansing heard the Grand River Assembly plant won't be cranking out Cadillacs, they started to worry.

The plant is suspending production for three weeks beginning August 18.

Scott Watkins is a Senior Consultant for the Anderson Economic Group.

"I think they'll take the two or three weeks to cut back on the number that are produced and let the market absorb some of the product that's out there," Watkins said.

The plant is known for it's Cadillacs, specifically the CTS and ATS.

The decision to slow production impacts about 1400 employees at the assembly. GM's official reason for slowing production is to match supply and demand.

In June, sales of the Cadillac CTS dropped 10% while ATS sales were down almost 32%.

The numbers were bad again in July, the CTS fell almost 30% while the ATS was down another 11%.

Watkins says competition is one factor that can keep cars on the lot.

"Audi, BMW, Mercedes and the like are doing a lot to come back with products that can compete with ATS and the CTS," Watkins said. "So it's taking the Cadillac brand a little time to catch up with those brands."

Otherwise, Watkins says, luxury car sales are doing well this year.