• Aug 18, 2009
General Motors announced an increase in North American production this afternoon that has no doubt been brought on by the success of the federal government's Cash for Clunkers program. The increase will add shifts at facilities in Lordstown, OH, which produces the Chevy Cobalt, and the CAMI plant in Ontario, Canada, which makes the new 2010 Chevy Equinox and GMC Terrain.

All in, the extra shifts will add 60,000 units to GM's production schedule over the third and fourth quarters of 2009. Extra bonus: 1,350 union auto workers will return to work to make it happen. GM also says that further production increases are likely based on positive consumer reaction to other vehicles like the Chevy Camaro, Cadillac SRX and CTS wagon and new Buick LaCrosse.

We'll have to wait until September sales numbers are released to see just how much C4C has positively affected GM's sales, but it's crystal clear now that dealers have sold through their inventory and want more, pronto.

[Source: General Motors | Photo by Bill Pugliano/Getty]



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."



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    • 1 Second Ago
  • 35 Comments
      • 5 Years Ago
      YAY, when sales slow, GM can buy out the new employees again!!!
      • 5 Years Ago
      Wow, Lordstown is up to 5 days a week now, big deal. That is still only one shift, albeit a 10 hour crew. Not a ringing endorsement of GM's strategy when Ford's Wayne, MI plant just was bumped to 2 10hour shifts a day and mandatory saturdays until the end of the year, trying to bump up Focus production.

      GM: "We only have a 60 day inventory of Cobalts, oh no! Lets make more!

      Ford has a 13 day inventory of Focuses, and Wayne is physically unable to push out more due to supplier lead time, thats a problem companies like to have!
        • 5 Years Ago
        GM could care less, they're US-gov-owned now. :|
        • 5 Years Ago
        LOL.
        "
        GM: "We only have a 60 day inventory of Cobalts, oh no! Lets make more! "

        They do have to make sure that Enterprise has more cars that they can strip airbags from.
      • 5 Years Ago
      I don't hate the Cobalt, but GM, please stop putting those awful wheel covers on all your Chevy's like the ones on that red Cobalt. I just can't stand those things!
      • 5 Years Ago
      Its great to hear about people being rehired but in the end they are simply going to be laid off again. I know the demand is there but its a small boost and wont last which does make me a bit sad. Hopefully by the time C4C officaly ends the automakers will figure out a way to keep this demand going and hence make these re-established jobs stay.
      • 5 Years Ago
      Reinstates 1,350 jobs

      Uh, how about that spring hill, tn plant.. it's still in limbo ...
        • 5 Years Ago
        I'm sure that sentiment about jobs figured heavily with the Sentors form TN as they tried late into the night to make sure that GM and its employees and its dealerships went down.
      • 5 Years Ago
      Ignoramous, your not only a racist monkey but that ridiculous rebel flag you wave around is probably made in China. Get a life you redneck. No, I am not an Obama lover but heck you probably have all the answers...beer, mullets and pickup trucks right?
      • 5 Years Ago
      Chevy Cobalts? It must be a Clunkers for cash program not a cash for clunkers program!
        • 5 Years Ago
        AHAHAHAHAHAH that actually made me laugh out loud.
      • 5 Years Ago
      Hmmm...automotive stimulus saves jobs and people complain. Automotive companies slash jobs and people complain. I think people just like to complain.

        • 5 Years Ago
        I'd like to understand how this saves jobs. Cash for clunkers is a good opportunity to take your tax dollars back while digging a hole for future generations, sure, but it's not saving or creating any jobs, it's stealing jobs (what, where do you think that money's coming from?) to keep a couple union workers... working, for as long as there are people willing to take a stupid personal economics decision and as long as the program's up. It's possible these guys aren't temporarily laid off once either of these two conditions are up, but that would only be because the economy in general picked up - and we have nothing to guarantee this unless the administration plans on supporting a dysfunctional system much longer.

        Besides, it's not the government's role to 'save jobs', as you say. Have you ever bothered reading your constitution? Do you even know what your country's suppose to stand for? There shouldn't [even] be a class war for influence over government, dang it!
        • 5 Years Ago
        Hah, couldn't have said it better! AB commenters are especially good at complaining
      • 5 Years Ago
      By the time the cars are produced and delivered the program will have been over for a long time. Every car will just sit on dealer lots.

      That is unless GM knows something and "Cash for Perfectly Good Cars Owned by People Who Would Have Bought A New Car Anyway" will be extended indefinitely.

      $4500 for a car that will be destroyed and they only give $8000 to help a young first time homebuyer try to get a house. I love getting screwed everyday.
        • 5 Years Ago
        It certainly wasn't cash for a perfectly good car in my case. My '87 Grand Marquis had a dead battery and blown power steering, and when I left it idling on the dealer lot when I turned it in so they could move it without jumping it again it boiled over and left a big puddle of anti-freeze in their parking lot.

        In my case it was "Cash for a bomb I was about to junk anyway"
        • 5 Years Ago
        I do too, unfortunately we forgot to this morning and I've had a woody all day.
      • 5 Years Ago
      Looks like the Cobalt is still a popular car.
      • 5 Years Ago
      Good for those folks getting jobs! Let's leave the politics out of this, I'm just glad people are getting work and people are buying cars.
        • 5 Years Ago
        Agreed, I'm happy too. I just hope that the economy will have recovered enough that GM doesn't have to lay off these people again once the Cash for Clunkers program is over.
      • 5 Years Ago
      Wow, are you an idiot. And a bigot.

      How do you go from "1,350 UAW workers return to work" to ranting about non-Americans? Oh, right... You're too busy ranting and raving to bother paying attention to little things like "facts" that might inconvenience your racist diatribes.
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