GM increases truck production for the spring
General Motors has been working hard to get its 2008 and 2009 inventory in line with the market's lackluster demand. In fact, many of the General's plants haven't run since before Christmas. GM sees better times coming this spring, though, and the Detroit automaker is increasing truck production for the week of March 16. Flint truck, which makes the Silverado, is going back online, and the General is ramping up the line speed to 31.5 vehicles per hour, up from 27.7. GM's Arlington, Texas plant is also increasing its line speed by an additional 1.5 units per hour. Arlington is the home of the GMT 900 SUVs, including the Tahoe, Yukon, and Escalade.
GM is anticipating somewhat stronger demand during the spring, but it also helps that inventory is way down. On December 1, GM had a 120 day supply of truck. By January 1, that number dropped to a 90 day supply.
[Source: Automotive News - Sub. Req.]
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Reader Comments (Page 1 of 1)
Sea Urchin 10:06AM (2/03/2009)
Great, more discounts.
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Richard 10:18AM (2/03/2009)
Well, they have - I am sure - to keep some part of their operations alive. So, why not build the vehicles which bring the most profit...especially if no-one is buying anything anyway.
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Sea Urchin 10:32AM (2/03/2009)
Thing is now, new F150 is out as is new Ram. This is not good for GM.
Richard 11:05AM (2/03/2009)
I see that the AOL blog-mechanism failed - again.
Urchin, I agree with you - relative to share. But I also think that pick-ups and Urban Assault Vehicles (like the Suburban) are the last bastions of American manufacturer viability - Tundra notwithstanding.
So, while they'll sell less Siverados than Ford does F150s and while they'll be in a race with the new Ram, at least they'll sell something. Which is better than trying to get us to buy Cobalts instead of Altimas.
Roland 10:27AM (2/03/2009)
This is going to be bad- GM is still with the same posture and "heavy on full size" inventory policy that brought them down in the first place. They are even closing the start up small 4 cyl/turbochged engine plant in Flint, Mi too.
And they still have the nerve to back to Congress to ask for more billions?
GM is is doing nothing more than volunteering for the lethal side of a firing squad without a blindfold--
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MoonRover 11:30AM (2/03/2009)
Companies build what the public is buying. Yesterday I was in the local Chevy dealer, their sales are up on pickups and SUV's, the buying public will not be dictated to. It will take time to change the minds of American car and truck buyers, it will not happen overnight. In the meantime companies, including Toyota will have to build what the public demands or go out of business. The truth is, hybrids will not sell as long as gas is cheap.
hokieman09 10:43AM (2/03/2009)
I'm not sure about this. If the trucks that are already made are not selling why not make sure they are sold first before making even more than before?
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alex 10:43AM (2/03/2009)
Gas is cheap, so people will buy trucks (just look at truck sales since the price of gas plummetted). And before the shut down, plants were running VERY slowly because inventory was high. now that it's low, they will increase production slightly so that production meets demand.
there's really nothing to get excited about here.
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JD 10:48AM (2/03/2009)
great point hokieman09, not the smartest move by gm.
http://www.30carinsurancetips.blogspot.com
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cowboy bob 10:53AM (2/03/2009)
That is one ugly truck. As to fuel cost reductions influencing sales- Just wait till the effects of OPEC's two million barrel a day reduction of output starts to show. Gas will be $5 again, and everybody will be screaming for "econobox's" while these dinosaurs lay on lots. (AGAIN) "Bailout-Round two!" Ah yes, Detroit is so "with it".
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msm 11:04AM (2/03/2009)
The worst statement I read is nobody is buying anything---wrong----the deals right now are fantastic and there is a truck shortage, and by the way, the people that are going to buy GM trucks and they are going to in droves are not going to buy Dodges or Fords, the same goes for them..............don"t count GM out................the other car companies don't make a move or even think of design till GM introduces their models.
As far as the trucks go, all, BIG 3, are selling trucks right now, nice big fancy expensive ones... ye haw moth#$%#'s
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cowboy bob 12:02PM (2/03/2009)
Selling? Sure, at a loss. Don't worry, as they say-"we'll make it up on volume".
jv2k 11:07AM (2/03/2009)
Gas is already getting close to $2 a gallon in ny. Lets see what happens when it gets warmer and gas prices go up(as they do every year)
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jamie 11:35AM (2/03/2009)
Sheesh!
At the same time GM announced it will offer buyouts to ALL of its hourly employees, but the latest offer would be less generous than previous buyouts.
GM spokesman Tony Sapienza said the buyouts will mainly target GM's 22,000 retirement-eligible hourly employees, though any union employee can take the offer.
A union official told AP that GM would offer $20,000 in cash and a $25,000 car voucher for workers who retire early and those who simply leave the company.
GM to offer buyouts to all hourly employees
Tuesday February 3, 11:24 am ET
http://biz.yahoo.com/ap/090203/general_motors_buyouts.html?.v=4
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jamie 2:11PM (2/03/2009)
Gotta glimpse of tomorrow's sales data and it appears GM has really tanked this time...down 50.4% (could be revised slightly though)
This would explain the post haste layoff and buyout announcements yesterday.
However, it must be noted that rental fleet sales were down seriously (about 65%) as it really Hertz to be in the auto business nowadays. They are doing everything they can to remain solvent, even by holding onto current models much longer than they used to.
caddy-v 12:07PM (2/03/2009)
For those of you that may not have been following the news, truck and SUV sales have been on the rise for the last couple of months.
And just because Flint and Arlington increase production, Janesville is closed.
Many of my business friends have'nt bought new trucks or equipment for at least two years and with the pricing and finance rates of today, it could'nt be a better time to replace aging trucks. If and when this global warming induced coldest, snowiest winter in twenty years gives way, I need to buy two trucks, one to replace one that was hit head on in a global warming induced white out, and the other due to being hit by a front end loader removing the global warming induced 14 inches of snow in the golbal warming induced -14 degree weather.
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paul810 10:18PM (2/03/2009)
Are they still bringing out the diesel in 2010, or has that been canned now?
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Adam H. 6:47PM (2/03/2009)
This number isn't up to what GM-Arlington was running last summer, a number north of 50 vehicles an hour.
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Other Man 3:25PM (2/16/2009)
The LTZ 6.2L 4WD with the monochrome body option is one nice truck!
Still waiting for the Duramax 4.5L option (what's taking so long?).
I'd also like to point out I don't see why they're still selling the 4.8L. The 5.3L gets better mileage and has far superior grunt. The 4.3L is tough-as-nails, but it's been behind the output of Toyota's 4.0L since that engine came out for 2005, which also have five gears.
In fact, in general, the V-6 engine big trucks have been ignored by their bean counting bosses.
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