General Motors to lay off over 2,000 in Michigan and Ohio

Falling demand for passenger cars will lead to job cuts affecting 2,000 General Motors employees starting from the first quarter of next year.

The decision to make the layoffs marks a wider trend of slowing retail sales for big automakers, which has also had an effect on the other two of the US' big three car-makers - Fiat Chrysler and Ford Motors.

GM has seen strong demand for its sports utility vehicles and pickup trucks in the US, but the likes of the Chevrolet Cruze and Cadillac sedan ranges have suffered since the much-commented peak of the car market this year.

The Detroit carmaker has seen a 3.6% decline its sales this year so far.

Factories in Lordstown, Ohio and Lansing, Michigan will be the ones affected intially by the suspension of shifts, before the job losses arrive in the first quarter of 2017.

Ford and Fiat have also announced a series of deep cutbacks in the second half of 2016, and fears are abound that BM's bullish production schedule may lead to an overstocking of inventory. It currently has 84 days of unsold inventory with dealers, well above the industry average of 73 days' supply.

GM's share price fell to $30.26 yesterday, its lowest since August, before rebounding to $30.83, down 2.8%.