GM to boost output due to clunkers incentives

[Justin Bimmer]

GM to boost output due to clunkers incentives

By TOM KRISHER, AP Auto Writer Tom Krisher, Ap Auto Writer – 42 mins ago

DETROIT – Higher sales from the government's Cash for Clunkers program have prompted General Motors Co. to boost production at several of its factories, according to company and union officials.

The increases include an extra day of work at the Lordstown, Ohio, assembly plant and increased hours at a factory in Orion Township, Mich., said the union officials, who asked not to be identified because the announcement, expected Tuesday afternoon, had not been made.

The Lordstown plant, which makes the Chevrolet Cobalt and Pontiac G5 small cars, is now running at one shift for 10 hours per day from Monday through Thursday, but the company will add the next two Fridays to the schedule, one union official said. Plant spokesman Tom Mock confirmed the increase.

It was unclear what would be added at the Orion plant, which makes the Chevrolet Malibu and Pontiac G6 midsize sedans.

The Malibu and Cobalt have been popular with people trading in older less-efficient models under the clunkers program, which offers up to $4,500 to people to scrap vehicles with gas mileage of 18 mpg or less.

At the end of July, GM had 70 days worth of Cobalts on dealer lots, while it had 55 days worth of Malibus, according to Ward's AutoInfoBank. A 60-day supply is ideal to maintain a good selection for buyers but not have too many cars.

But since the clunkers program began in late July, dealers have reported spot shortages of both vehicles.

At Randy Wise Buick-Pontiac-Chevrolet in Milan, Mich., southwest of Detroit, there were 22 Cobalts and 26 Mailbus on the lot before the clunkers rebates started, said Mark Jarrait, general sales manager. But now the dealership is down to two Cobalts and four Malibus, and he has ordered more, Jarrait said.

"All of the sudden they disappeared," he said. "The Cobalt has been extremely hot. The Malibu has been extremely hot."

The Cobalt, GM's highest-mileage car at up to 37 mpg on the highway, once was among the top 10 vehicles on the "cash for clunkers" purchase list. But dealers say shortages have bumped it from the top 10 list.

As of last week, the Toyota Corolla small car was the top new vehicle purchased by people trading in clunkers, followed by the Honda Civic and Ford Focus compacts. Toyota's midsize Camry was fourth, while its gas-electric hybrid Prius was fifth, according to the government.

Ford Motor Co., Honda Motor Co., Toyota Motor Corp., Hyundai Motor Co. and Chrysler Group LLC all have announced production increases due to the clunkers program.

[siegen]

First Ford now GM? Increasing production, saving jobs? This program is just horrible! Our economy is doomed!

[Justin Bimmer]

Every little bit helps. Hopefully the momentum can keep up.

[Intrepidation]

I just wonder what the fallout will be like when this program inevitably ends.

[hyperv6]

This plan is like a hit of speed.

It feels good now but when it is over what will be the price to pay? Will the market fall flat like after the rebates? Will the market keep going remians to be seen? How much will it cost the tax payers? How will they pay for all the spending? Not just this program but all the rest of this spending they are doing?

I am just glad to see the money and work coming to Ohio for once.

Edited August 18, 2009 by hyperv6

[Justin Bimmer]

GENERAL MOTORS

PRESS RELEASE

GM Increasing North America Production, Adding Jobs to Meet Demand

* Company adds 60,000 cars and trucks to production schedule

* Adds shifts of production to its Lordstown (Ohio) and CAMI (Ontario, Canada) plants

* Reinstates 1,350 jobs

Detroit – General Motors is increasing production at several North America assembly plants in response to increased sales. The company will add shifts, overtime and reinstate forecasted down weeks at select facilities. As a result, GM will add about 60,000 vehicles in the third and mainly the fourth quarter production forecast, ensuring a wide selection of high-quality, fuel efficient cars, crossovers and trucks for customers.

To help meet the increased demand, GM is adding shifts at CAMI, Ontario, Canada where the next generation Chevy Equinox and all-new GMC Terrain are built and Lordstown, Ohio where we build the fuel-efficient Chevy Cobalt. This will bring approximately 1,350 UAW and CAW employees back to the assembly lines. The Chevy HHR and Colorado and the GMC Canyon are also experiencing increased demand. Based on consumer reaction to the Chevy Camaro, Cadillac SRX and CTS Wagon and the Buick LaCrosse, we anticipate the need to increase production at our plants will continue.

"We are running our plants to maintain maximum flexibility and keep production tightly aligned with customer demand," said Tim Lee, GM group vice president, global manufacturing and labor. "The uptick is an encouraging sign that vehicle sales are turning around, and we will ramp up quickly to meet that demand."

In July and August, the popular Cash for Clunkers program generated substantial demand for a broad range of fuel efficient vehicles within GM, including the Chevy Aveo, Cobalt, HHR, Malibu, Equinox and Colorado. This latest round of production increases will go a long way in rebuilding dealer inventories to help us meet strong consumer demand.

"It's gratifying to see demand for our products accelerate and we are extremely lean with inventories on our launch products like Camaro, Equinox, LaCrosse, SRX, CTS Wagon and Terrain," said Mark LaNeve, vice president, U.S. sales. "During the third quarter 2009, we've added production which will result in 35 percent increase over the second quarter. With today's announcement of further additions, the fourth quarter will now be at least 20 percent higher than the third quarter, which is a very positive trend."

[hyperv6]

Too bad the Volt and Cruze are a year away. That money would have been a good intro tool.

[Camino LS6]

This plan is like a hit of speed.

It feels good now but when it is over what will be the price to pay? Will the market fall flat like after the rebates? Will the market keep going remians to be seen? How much will it cost the tax payers? How will they pay for all the spending? Not just this program but all the rest of this spending they are doing?

I am just glad to see the money and work coming to Ohio for once.

That, and the outright waste of destroying the drivetrains and crushing the cars...

This could have been done in a much better way.

[ocnblu]

Adding production at the Colorado/Canyon facility... cool! Also, my Cobalt has been pretty near flawless except for the steering issue, which is still fixed. At 11,500 miles so far, she's going strong. I've always read that if a part is going to break, it usually does so in the first 10,000 miles, so I am optimistic. People, buy Cobalts and Colorados!

[daves87rs]

Adding production at the Colorado/Canyon facility... cool! Also, my Cobalt has been pretty near flawless except for the steering issue, which is still fixed. At 11,500 miles so far, she's going strong. I've always read that if a part is going to break, it usually does so in the first 10,000 miles, so I am optimistic. People, buy Cobalts and Colorados!

Well, if my Cobalt holds up well...we'll see.

I still think that GM will still keep the Balt 4dr around a bit longer after the Cruze rolls out....

if for no reason besides sticker shock....

[A Horse With No Name]

Glad to see GM and Ford moving cars.

Chris

[siegen]

This plan is like a hit of speed.

It feels good now but when it is over what will be the price to pay? Will the market fall flat like after the rebates? Will the market keep going remians to be seen? How much will it cost the tax payers? How will they pay for all the spending? Not just this program but all the rest of this spending they are doing?

I am just glad to see the money and work coming to Ohio for once.

The program isn't designed to work indefinitely. It is supposed to give a temporary boost to auto sales during this slump, and it will have the effect of improving average vehicle mileage, which will continue long after the program has ended.

That, and the outright waste of destroying the drivetrains and crushing the cars...

This could have been done in a much better way.

Do you think they just crush them and throw them in a landfill somewhere? They seize up the engines so people don't try to resell them, and the metal is recycled. The idea is that a large vehicle such as an Explorer will be replaced by a Focus, and there will be a net gain in raw materials.

[SAmadei]

The idea is that a large vehicle such as an Explorer will be replaced by a Focus

That should turn some people off small cars in a hurry.

Actually, the way I drive (like the Stig) and the stuff I haul (I have about 1500 lbs of stuff in the car right now), I would likely get worse MPG in the Focus than the Explorer.

[Satty]

Good news, one local dealer has pretty much nothing but Aveos as far as cars are concerned. Seriously, just a couple of Malibus maybe a dozen Cobalts and about 40 Aveos. I'm sure they have an Impala or two hiding in the back, but C4C seems to be doing the trick. GM (and others) are seeing increased sales (without having to resort to "Employee Pricing" gimmicks) and people are getting into more efficient vehicles.