[ccaats]

GM Adds Shift at Crossover Plant, Cuts Production at Truck Plant


DETROIT (AP) -- General Motors Corp. will add a third shift and about 500 temporary workers at its plant near Lansing where it builds crossover vehicles, but it also is cutting jobs and pickup truck production at a plant in Pontiac.

GM said the Pontiac downsizing is due to a slumping pickup market nationwide, and the increase at the Delta Township plant near Lansing is due to rising demand for the Buick Enclave, Saturn Outlook and GMC Acadia crossover vehicles.

About 500 temporary workers laid off earlier in the summer likely will get a chance to return to the Delta Township plant when the third shift is added Sept. 4, but the details must be worked out with the United Auto Workers, GM spokesman Tom Wickham said Tuesday.

The Delta Township plant, which now employs about 2,800 hourly workers, makes the eight-passenger crossover vehicles which came out in April. Sales of all three took off in June, GM said, with dealer orders for the Buick seven times more than the plant could produce on two shifts.

"There are places in the country that dealers haven't even seen one yet," said Pete Nico, GM's vehicle line director for the crossovers. "The trucks are pulling in, and the customers are walking away with them. When dealers do see a shipment arrive, they don't have anything to leave on their lots."

Sales of crossovers, which have sport utility vehicle attributes but are built on more fuel efficient car underpinnings, are growing rapidly as the market shifts away from gas-guzzling truck-based vehicles.

The Delta Township plant, which opened last year, can make just over 44 vehicles per hour, GM said.

Article continues at link. http://biz.yahoo.com/ap/070724/gm_production.html?.v=1

 

[Canuck]

How much will the third shift really help? If Mud was working 9.5 hrs and the 2nd shift was working 9.5 then there is only 5 hrs left?

How much will the overall output go up? If it is 44/hr then will it go up by 25%? or up to 55/hr.

I think the big opportunity is to reduce the Outlook ratio and increase the Enclave ratio. I understand from previous discussion that the Enclave have more steps=take longer?

So any quess on when they will catch up?

 

[fenwah]

All shifts will be working a standard eight hours...no overtime. Let's say that each of the two shifts is working 9.5 hours a day...so 19 hours. That leaves five hours of down time. Once the 3rd shift starts, expect to see an increase in production from 836 vehicles a day to 1056 vehicles a day...220 more vehicles a day...or 1540 vehicles a week...or appx. 6160 vehicles a month. 6160 extra vehicles being produced is a significant amount. I'm really hoping that they "flood" the market with these and then have to offer incentives...although I think I might be waiting a while for that to happen.

 

[zman]

I'm really hoping that they "flood" the market with these and then have to offer incentives...although I think I might be waiting a while for that to happen.

As an owner I hope that they do NOT do that. It will only serve to negatively effect resale values, which is not a strong point of GM vehicles.

 

[tuberosa]

Re: Buick Enclave Order To Production Ratio Is 7:1; 3rd Shift To Be Added At Pla

Even though I am not an owner yet I agree with zman. Flooding the market beyond demand and then offering incentives is one of the things that got GM and Ford in the position they are in today. And there will be plenty of that going on with the Tahoes/Yukons as more of these owners transition to CUV. But there is definitely a happy medium between the scarcity of inventory available in many geographic areas and oversaturating the market. Instead they should be focusing on how do they maintain their technological lead. Toyota, Honda, and others will be coming back to this segment with much more than their current Highlander, Pilot offerings. GM needs to be working on hybrid, V8, bluetooth, etc. to make these market leaders even better in 2009, 2010.