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GM makes adjustments at Tennessee plant

Move created to cut down on rising inventories.

Ironically, GM added the third shift of production to Spring Hill in January of this year.

General Motors is laying off the third shift at its Spring Hill, Tennessee, SUV factory as it deals with a slowing USA auto market.

Company spokesman Tom Wickham says GM is still determining how many permanent and temporary workers will be furloughed. The layoffs, which will start after Thanksgiving, will be indefinite.

The Spring Hill plant now produces the Cadillac XT5 and GMC Acadia crossovers with 3,300 employees. The new crossover is expected to be the Cadillac XT4, though GM is declining to confirm.

But inventories of the SUVs have grown.

Both vehicles have experienced significant surges in sales this year, however estimated inventory levels are above the industry standard of 60 days, according to the Automotive News Data Center: XT5 at 68; Acadia at 105. Automakers consider a 70-day supply to be optimal.

GM has declined to confirm how many employees will be impacted by the cut.

Wickham declined to disclose whether GM has plans for production cuts at any other plants to address slowing sales.

Last winter, GM has cut the third shifts at auto factories including at Lansing Grand River Assembly Plant and the Lordstown Assembly Plant in OH, and the second shift at the Detroit-Hamtramck Assembly Plant. At the time the company announced an addition of 650 jobs for the shift.

In a separate announcement, GM has committed to investing $294 million into the Spring Hill plant.

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