BREAKING: GM ups production due to Cash for Clunkers, 1,350 union workers back on the job
by John Neff on Aug 18th 2009 at 2:59PM 
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."
Reader Comments (Page 1 of 2)
Stumpy 3:04PM (8/18/2009)
Oh God they are making more Cobalts!
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Farmboy 4:34PM (8/18/2009)
Aveos too. OOOHHHH THE HUMANITY!!!!
jv2k 3:04PM (8/18/2009)
And cue comments about how terrible and plasticy the cobalt is despite the fact that every other compact car is just as riddled with plastic.
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Photo Phil 3:49PM (8/18/2009)
or how GM actually sold cars! Why would anyone wanna buy a GM anyways, they don't know how to make cars. Only foreign cars are worth buying...
Sean 4:23PM (8/18/2009)
I work at a rental car place cleaning/shuttling, so I'm in a Cobalt and G5/G6 every half hour or so. Compared to the Sonata/Optima/Corolla and my Mazda3, they hold their own. 'Fast', comfortable, relatively spacious. Can't really ask for much more.
Aprime 5:27PM (8/18/2009)
Meh, it's decent... But it's old, and it rather shows (jesus Christ look at those hubcaps).
I'd rather have it over a Corolla, that's about it.
Shiftright 7:32PM (8/18/2009)
It may not be on par with the Civic and the 3, but there's nothing wrong with the Cobalt, and I'd take one over a painfully dull Corolla. The haters of domestics would still rip on it if it was a 3 series with a Chevy badge.
XGM 11:55PM (8/18/2009)
Hey cant complain when some local dealers (in Ontario in this case) are slashing 5 grand off these.
Gary 3:07PM (8/18/2009)
As nice as it is for the public to have great discounts on cars, we can't get addicted to it and expect it to last forever.
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Taylor 3:22PM (8/18/2009)
Bingo. There are alot more cars being sold before this program went into place and after it ends. I can only hope GM hired these union workers on as temporary because as soon as the program runs out of money, they will go through a tough dry spell and will need to get rid of them.
Anyone that's wanting/needing a car is getting it now with this program. They won't wait for the program to be over to go buy a cobalt or whatever other crap cars they are making.
Taylor 3:24PM (8/18/2009)
oops. whas supposed to say: "...alot fewer cars before and after..."
Codey H. 3:10PM (8/18/2009)
Reinstates 1,350 jobs
Uh, how about that spring hill, tn plant.. it's still in limbo ...
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The Other Bob 3:18PM (8/18/2009)
That plant may still be making the Traverse, but not for long. Soon Delta Twp (Lansing) plant will get that production.
jpm100 4:30PM (8/18/2009)
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.
Cody (drinking their tears of envy since 1983!) 3:15PM (8/18/2009)
That gosh dern Obama I tell ya!
He's too logical! I don't like it! He makes too much sense to our economy!!!
/angry rant of typical autoblog.com commenter on every C4C article ever
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giantenemycrab 3:25PM (8/18/2009)
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.
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CB 4:31PM (8/18/2009)
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.
Luis 3:31PM (8/18/2009)
Hmmm...automotive stimulus saves jobs and people complain. Automotive companies slash jobs and people complain. I think people just like to complain.
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Lemon 5:12PM (8/18/2009)
Hah, couldn't have said it better! AB commenters are especially good at complaining
Aprime 5:24PM (8/18/2009)
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!