Both Ford and General Motors don't want to saddle dealers with a glut of products in 2008, so both automakers plan to reduce production in the first quarter of next year.
The General plans to produce around 950,000 vehicles (606k trucks and 344k cars) in the first three months of '08, a reduction of around 11-percent from 2007's output. Ford will be limiting production by 7.4-percent in the same period, reducing manufacturing by some 55,000 units for a total of 685,000 vehicles.
Ford and GM cite the economy and the subprime credit debacle as the primary reasons for the slow down, with both automakers keeping an eye on what's ahead in '08 and adjusting accordingly.
[Source: Automotive News – Sub. Req.]
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Reader Comments (Page 1 of 1)
raz @ Dec 4th 2007 1:13PM
Look what we need to know is not general info about production cuts at GM, we need to know the exact number of units they are planning to make of Chevy Travesty—or whatever it is called. This clone of Buick Enclave and Saturn may hurt sales of these SUVs…that may be very, very painful for Buick because this Enclave is probably the only reason people even use the word Buick in a conversation.
As far as Ford goes…………….who cares.
3cubed minus 3squared plus1 @ Dec 4th 2007 1:53PM
I would think the Travesty would affect GMC and Saturn sales and not Enclave sales.
And if people are using Buick in a conversation, then there is something wrong with them. :)
Jeff @ Dec 4th 2007 1:55PM
The Traverse will be sufficiently different from the Enclave, much like the Tahoe is sufficiently different from the Escalade. Despite being on the same platform. the products will be differentiated in the same way. They won't look similar, or even necessarily ride similarly.
CJ @ Dec 4th 2007 1:23PM
Oh boy. The UAW is going to be pissed.
raz @ Dec 4th 2007 1:28PM
Looking at everything now i think UAW got screwed by these contracts.
Sure they did the same to GM and others for decades (jobs bank) but in any case it looks like more people will be laid off.
Guenther @ Dec 4th 2007 2:56PM
Anything is better than if the UAW had kept its death grip and killed the company altogether. then EVERYONE would have been out of a job.
Pete @ Dec 4th 2007 1:30PM
The layoffs are happening at all levels of the company. F the UAW.
iQuack @ Dec 4th 2007 1:33PM
Building too many cars only to unload a glut of them at unfavorable prices is no way to run a business.
As a GM stockholder (thankfully, not many shares) I applaud the company's efforts to build what they expect to sell at a profit.
By the way, it seems that GM is FINALLY offering some really competitive vehicles now: Caddy CTS, Chevy Malibu, Saturn Aura, and Buick Enclave are examples. The upcoming Saturn Astra and Pontiac G8 will add to GM's list of winners.
GM already has excellent Chevy/GMC SUVs and trucks if you need a 5000+ pound vehicle or just enjoy burning lots of gas to look butch.
MemphisNET @ Dec 4th 2007 1:38PM
Agreed, its good to see all the American vendors getting a hold on their products, GM especially. It does suck for UAW/CAW workers, but the fact of the matter is, until our countries start buying into our own products again, the scale needs to come back down to earth - or these companies will just die.
GM has the most impressive portfolio so far this/next year. Ford is doing a good job, but until they start getting out of the red we probably won't see too many new refreshes. I've said it before, I love my Mopar vehicles, but they really need to start focusing on on their interiors - otherwise they make solid, affordable vehicles -regardless of fanboys and editors not liking some of their vanilla cars because they're not sports cars.
Gregg @ Dec 4th 2007 2:18PM
Um, Ford won't get out of the red until they start issuing more new vehicles and significant refreshes. Delaying that stuff just lengthens the dying process, e.g., Packard, Studebaker, American Motors, Plymouth.
s @ Dec 4th 2007 2:54PM
Production cuts should start with Hummer, move to SAAB, then head on over to Pontiac and then Buick. All wastes of time, effort and money and no ROI.
AltairDusk @ Dec 4th 2007 4:53PM
Buick is turning around right now, Pontiac is looking good for upcoming years and at least around here Hummers still sell like hotcakes. I fail to see what you're basing that opinion on...
Guenther @ Dec 4th 2007 3:09PM
As I came past the picketers this morning, marking week 7 of the UAW strike here, I couldn't help but notice the Nissan Titan serving as a warming shack for a few of the union brothers. Lots of solidarity there....
Devin @ Dec 4th 2007 4:04PM
Why would the UAW still be picketing? All of the contracts are signed.
Anyway, though this will probably reflect poorly on GM next year in the "By the Numbers" collumns, it will be good for them in terms of profits per vehicle. Once they regain their image, which is happening surprisingly quickly, they will get more buyers and can beat Toyota again. I guess it may not be all that big of an issue if Toyota keeps having all of these reliability issues. But then again, people are blind, so who knows.
Guenther @ Dec 4th 2007 6:01PM
Ford, GM, and Chrysler contracts are signed. However, the UAW represents thousands of workers at many tier 1 and 2 suppliers. This one in question would be International Truck and Engine Corporation, who among other things, supplies Ford with Powerstroke engines. They have been w/o a contract since October 1st.
Steve B. @ Dec 4th 2007 10:02PM
This makes no sense. The dollar is seriously devalued... if manufacturing can't make it with a significant dollar advantage (A €20,000 car was worth $23,400 in 2005. Today, it's worth nearly $30,000!).
Hell, even the Yen has gained significantly. A the dollar has lost around 10% against the yen since the credit storm started this summer. If the domestics can't win with massive union concessions and the field tipped in their favor, they truly are toast.
I guess it's a bit like the boy who cried wolf. If you make junk long enough, constantly saying "Have your driven a ___ lately" or "Not your fathers ___", (or to paraphrase, "It's not garbage any more, we promise,") you shouldn't expect consumers to believe you when you finally get something right.
abraham pettway @ Dec 5th 2007 12:20AM
With all the cars/trucks on the market made in germany and japan, why would anyone in their right mind pay more than 20k for an american made car/truck?
TYLER @ Dec 5th 2007 12:43AM
So wait a minute, if we switch to a pull strategy instead of a flood strategy we will lose less money? How long has this idea been around for 20 yrs? Shows you what a union and arrogance can do to a huge corporation.