Autoblog

GM announces plan to close Windsor transmission plant

Damon Lavrinc — 2008-05-12T15:57:00+00:00

Filed under: Plants/Manufacturing, GM, Canada

When the second quarter of 2010 rolls along, 1,400 workers at General Motor's Windsor transmission factory will be out of work. The plant, which currently produces four-speed gearboxes for GM, will be phased out at the turn of the decade, with no plans to retool the facility to produce any other components. GM's Canada President, Arturo Elias, made it clear in the announcement that the decision was not a "reflection on our excellent Windsor workforce," but instead is due to a lack of available, "replacement products in the relevant timeframe for this location." Fortunately or unfortunately, today's announcement of the plant's closing takes place as the General negotiates a new contract with the Canadian Auto Workers (CAW) union.

[Source: Detroit News]

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Ex-Tesla CEO irked over which Roadster he's getting

Sam Abuelsamid — 2008-05-12T12:29:00+00:00

Filed under: Convertibles, Sports/GTs, Etc., Green, Plants/Manufacturing

Martin Eberhard first conceived of what ultimately became Tesla Motors and the Tesla Roadster when he couldn't get AC Propulsion to build him a TZero. Since he wanted a battery-powered sports car, Eberhard set out to bring together a team that would build his dream car. Of course, it was always his intention to buy the first car for himself, but creating a car company from scratch is not a low budget proposition. Hence Eberhard had to bring in some investors to fund the program. PayPal founder Elon Musk came in big with a pile of cash in return for which he requested the first car. After some haggling, Eberhard agreed to take Roadster number 2 and things moved along.

As we now know, Tesla encountered some speed bumps along the way and production got delayed by many months. The first production model was completed in December 2007, and delivered to Musk in February. Series production officially kicked off on March 17 of this year with the car with serial number 2 starting down the line. That car destined for Eberhard has yet to leave the Lotus factory in England. Meanwhile two other cars have been completed and one has been delivered to a customer in the U.S. while the other has been touring Europe for the last couple of weeks. Needless to say, Martin Eberhard is not pleased about other people getting their Roadsters before him. The problem is that automotive build sequences are a very complicated matter, which are only made worse when you blend big egos into the mix. The matter comes down to the difference between what the VIN numbers say and which cars we're actually built when. AutoblogGreen has a detailed report on what was "promised" to Eberhard, and what is being delivered, including documents provided by Eberhard.

[Source: AutoblogGreen]

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Is Hyundai targeting Texas for a new manufacturing plant?

Michael Harley — 2008-05-11T12:02:00+00:00

Filed under: Plants/Manufacturing, Hyundai

Richard Cortez, the Mayor of McAllen, Texas, called a news conference earlier this week to announce that city officials were in talks with an unnamed automaker to build a new manufacturing facility in the Rio Grande Valley. Interestingly enough, he gave few other details as he was worried about upsetting the "customer" as they have asked for silence on the project. Not to surprise anyone, but all signs are pointing at Hyundai Motor Company.

The Mayor has good reason to keep his mouth shut. Just two years ago, the South Korean automaker was in talks with local area officials about a similar project. Those plans fell through when early media leaks identified Hyundai as the potential automaker, and they chose West Point, Georgia, instead. (You are probably asking yourself, as we are, why would the Mayor call a news conference about this in the first place...)

Regardless, analysts say the Rio Grande Valley would be a good fit for Hyundai. The location is close to Mexico, so components could be assembled on the other side of the border and shipped to the United States for final assembly. If Hyundai chooses Texas for their new plant it would be their fourth facility in the United States following plants in Alabama, Georgia, and California. That is, if the Mayor can keep a secret. Thanks for the tip iSpec!

[Source: The Monitor]

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Saab halts next 9-3 development, may radically downsize next-gen

Michael Harley — 2008-05-10T09:32:00+00:00

Filed under: Sedans/Saloons, Plants/Manufacturing, Hatchbacks, GM, Saab

Click image above for a high-res gallery of the 2008 Saab 9-3

Tougher emissions and fuel economy regulations in Europe and the United States have forced Saab to put the brakes on development of the next-generation 9-3. The current Saab 9-3 is built on GM's Epsilon platform (shared with the Opel Vectra, Chevrolet Malibu, and Pontiac G6). The next-gen model was set to be based on the longer and wider GM Epsilon II platform (used for the 2009 Saab 9-5). However, Saab and parent company General Motors are considering radically downsizing the model to fit GM's upcoming 'Global premium compact' platform - a size rivaling the Audi A3.

GM design sources told Autocar that a smaller chassis would dictate new technologies to maximize interior room. These would include a slim modular roof assembly and slimmer doors with advanced side-impact technology. General Motors has also hinted that the new 9-3 could be manufactured in the United States. Many European automakers are feeling the impact a weak dollar is having on profits and, like BMW, are moving or increasing production in the States.

Gallery: 2008 Saab 9-3

[Source: Autocar]

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GM offers up to $200 million to end American Axle strike

Jeremy Korzeniewski — 2008-05-09T07:55:00+00:00

Filed under: Plants/Manufacturing, GM, Earnings/Financials, UAW/Unions

General Motors has been hit so hard by the ongoing American Axle strikes that it's stopped production of the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. All the while, the General is still negotiating with the UAW over local contracts at some of its most important plants. To ease some of its supply problems, General Motors has reportedly offered as much as $200 million to American Axle for the funding of employee buyouts, early retirements and for the support of wage buy downs. The offer, however, is conditional on a quick resolution between American Axle and the UAW.

Spokesman Dan Flores says that GM hopes "the offer will help bridge the gap between American Axle and the UAW and that they will be able to reach a mutually satisfactory agreement in the near future." Both the UAW and American Axle sound supportive of the investment; Bill Alford Jr., vice president and incoming president at UAW Local 235 says, "We're happy that General Motors is finally coming to the table and realizing that they have a stake in American Axle's future." For GM's sake and that of the striking workers, we hope the feuding companies find an amicable solution soon, though it seems unfortunate that GM, which is not exactly posting record profits itself, should need to cough up funding to make it happen.

[Source: The Detroit Free Press]

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Audi seriously considering U.S. plant

Damon Lavrinc — 2008-05-07T17:26:00+00:00

Filed under: Plants/Manufacturing, Audi

Volkswagen has already announced its intentions to build a factory in the U.S., narrowing down the possible sites to Alabama, Michigan and Tennessee. Now, in advance of a shareholder meeting in Germany, Audi CEO Rupert Stadler is reportedly saying that Audi is considering a U.S. plant, as well. The move on both automakers' parts is an attempt to capitalize on the weak U.S. dollar, the stronger euro and the fact that material costs are on the rise and a U.S. plant could mitigate some of those expenses. Additionally, both VW and Audi have made it clear that in order to achieve their lofty sales goals - one million units a year by 2018 for V-Dub and Audi's campaign to become the numero uno luxury carmaker - ramping up production capacity in the U.S. where many of those sales will be made is instrumental to their mutual success.

[Source: Autoweek]

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Strike forces GM to suspend truck and SUV orders

Damon Lavrinc — 2008-05-07T09:29:00+00:00

Filed under: SUVs, Trucks/Pickups, Plants/Manufacturing, Chevrolet, GM, GMC, UAW/Unions

General Motors has informed its dealers that production of some of its 2008 full-size trucks and SUVs has been halted due to the ongoing American Axle strike. The affected vehicles include the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. According to the General, a basic lack of parts is the reason for the stoppage and dealer orders for the week of May 8th and May 15th have been cancelled. While a lack of production is bad news for any automaker, we can't help but think that it couldn't have come at a better time for the General as SUV and truck sales are down overall.

[Source: Automotive News - sub. req'd]

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Jaguar and Land Rover could strike a deal with Daimler

Damon Lavrinc — 2008-05-05T13:32:00+00:00

Filed under: Plants/Manufacturing, DaimlerChrysler, Jaguar, Land Rover, Mercedes Benz, Tata

The sale of Jaguar and Land Rover to Tata means that the two British marques will have to look elsewhere for the parts normally supplied by Ford. Following the news that Daimler could be a supplier to both automakers comes word from Dr. Z himself that a deal is a distinct possibility.

Daimler holds a seven-percent stake in Tata Motors, which could make an easy case for Mercedes to supply Jag and L.R. with the necessary components to wean them off of Ford. Dieter Zetsche told Auto Motor und Sport that, "If Ratan Tata approaches us regarding the supply of components, we would be open to talks." AMG-powered XF, anyone?

[Source: Auto Motor und Sport via Automotive News - Sub. Req.]

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UAW strikes GM Malibu plant

John Neff — 2008-05-05T11:27:00+00:00

Filed under: Sedans/Saloons, Plants/Manufacturing, Chevrolet, UAW/Unions

Local UAW contract negotiations aren't going well for General Motors, and today they took a turn for the worst as union members at the automaker's Fairfax assembly plant in Kansas walked off the job at 10AM EST. The bulk of GM's hot-selling Chevy Malibu are produced at the Fairfax plant, with a lesser number of the four-door sedan being built at the automaker's Orion plant in suburban Detroit. Last month GM sold 17,050 Malibus, a 39.5% increase in volume over April 2007. The local union in Fairfax had given GM a number of ultimatums, extending them since the first was established for April 22nd. We're not exactly sure what issue is at the heart of these contract negotiations, but The Detroit News reports that at least one bone of contention is the plant requesting seniority to snag transfer jobs, while the other issues remain undisclosed.

General Motors has been able to weather a 10-week strike by union members against American Axle, one of its main suppliers, as only production of large trucks and SUVs have been affected. Another strike at its Lansing Delta Township plant where the large Lambda CUVs are built has also only served to reduce inventories of vehicles that are seeing a slow down in sales. While the General can withstand a reduction of inventory for vehicles that currently aren't selling as well as they were before because of high gas prices and a slump in the housing market, the Malibu is gaining popularity with consumers month over month. The Fairfax and Orion plants were already producing at capacity to keep up with demand, so today's strike will assuredly hurt the automaker where it matters most: the bottom line. We'd expect GM to act quickly to end the strike, as money is being lost by the hour while Malibus aren't being built.

[Source: The Detroit News]

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Aerial photos of test tracks on display at Minneapolis & NYC museums

Noah Joseph — 2008-05-02T09:32:00+00:00

Filed under: Spy Photos, Plants/Manufacturing

Volvo test track in Wittman, AZ

Autotechnogeoglyphics. If you didn't have to read that term at least a couple of times, slowly, to decipher it, you're probably some sort of freak. But that's the name of a display of aerial photographs taken of automotive test facilities across the United States. The show will be on at the Walker Art Center in Minneapolis, Minnesota, until August 17 before it moves to the Carnegie Museum of Art from October 4 through January 18.

Among those proving grounds being displayed in the show are GM's facility in Milford, Michigan, and Caterpillar's equipment test mountain. The images were taken by the Center for Land Use Interpretation, which previously displayed photos of parking lots under the heading "Pavement Paradise: American Parking Space".

[Source: NYT Wheels]

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Fiat buys Zastava to build new Topolino microcar

Noah Joseph — 2008-05-02T08:02:00+00:00

Filed under: Euro, Government/Legal, Plants/Manufacturing, Earnings/Financials, FIAT

If you told us a year ago that Fiat was going to sign a deal with the government of Serbia, we'd have laughed. But that was before the country announced that it was accepting tenders for investment in the state-owned automaker Zastava, makers of the famous Yugo (aka Skala 55). The process started back in December when the Serbian government made the announcement, sparking interest from various automakers. But even as recent as last week, the Fiat stance was that it was still considering the proposition. Well, it appears the Italian auto giant has done thinking, and has signed a memorandum of understanding with Serbia to establish a joint venture that involves Fiat investing a staggering 700 million euros (!) into Zastava's manufacturing facilities in exchange for a majority stake in the company, known in full as Zavodi Crvena Zastava. The Serbian government, meanwhile, will contribute some 200 million euros through tax incentives and similar measures.

Fiat has revealed that it will use the Zastava plant to produce the upcoming Topolino microcar. The vehicle will be based on the same platform as the 500 and Panda, but even smaller and positioned below either model, and share the same name as the concept car that previewed the new 500 and originally used on the 1936 runabout pictured above. According to reports, the new Topolino will be a compact two-seater measuring just 3150mm (124 inches) in length, slightly longer than the Smart ForTwo at 2692mm (106 inches). A four-seater version is expected to follow, in addition to an upscale version for the Lancia division.

[Source: Automotive News Europe - sub. req'd]

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Mazda creates disassembly line in wake of Cougar Ace capsizing

Noah Joseph — 2008-04-29T16:29:00+00:00

Filed under: Plants/Manufacturing, Mazda

If you've ever smashed up a car in an accident, you've probably had the unpleasant experience of dealing with insurance agents who assess what can be saved and what has to be written off. In most cases, insurance companies might find ways to save as much as they can. But the insurers of the Cougar Ace want to make sure every last nut and bolt of some $100 million worth of new Mazdas are completely scrapped.

The Cougar Ace, as you'll recall, was a ship full of Mazda automobiles that nearly capsized in the Pacific Ocean two years ago. Although the cars were securely strapped down, Mazda deemed it impossible to determine the extent of the potential damage caused to each of the vehicles on board, so rather than risk the cars making their way onto the market - like many Katrina-damaged vehicles from New Orleans three years ago - the company and its insurers decided each car had to be scrapped. The process of destroying 4703 vehicles, however, proved to be quite a challenge. Airbags had to be triggered, wheels sliced and tires purposely punctured. For the airbag process alone, it would have taken half an hour for each car, so Mazda developed a device to inflate them all at once on each car, saving countless hours of work. The result is a seemingly counter-intuitive disassembly line turns the nearly 5000 new cars into metal shards. Follow the jump to read more about the process.

[Source: The Wall Street Journal]

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Proposed CAFE rules hurt Porsche, small powerful vehicles

Michael Harley — 2008-04-28T18:57:00+00:00

Filed under: Car Buying, Government/Legal, Plants/Manufacturing, BMW, Mercedes Benz, Porsche, Driving

Under proposed new fuel economy rules set by the National Highway Traffic Safety Administration (NHTSA), automakers with powerful short-wheelbase models are going to feel some pain. The agency is considering a plan to create two sliding scales of efficiency for cars and trucks of different sizes. Automakers will be assigned fuel economy standards based on the "footprint" (short wheelbase = small footprint) of their vehicles, and the number of vehicles they sell. Companies like Porsche, BMW, and Mercedes-Benz, independent luxury brands with high-performance models, will be hit the hardest. Interestingly enough, Toyota, Chrysler, and General Motors, big players with diverse model lineups, won't feel as much pressure.

Conforming to the tough new proposed rules may be very expensive. As a result, some industry executives expect some automakers, such as Porsche, just to pay the fines--it's less costly than changing a model lineup. Regulators are under the gun to adopt a policy by April 1, 2009. In the meantime, the NHTSA will be taking public comments over the next two months. Time to send 'em a letter...

[Source: Autoweek]

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Bugatti targa-top Veyron will be more expensive, exclusive

John Neff — 2008-04-28T17:29:00+00:00

Filed under: Convertibles, Plants/Manufacturing, Bugatti

Click above for high-res gallery of our time with the Bugatti Veyron

We already know that Bugatti's second vehicle in the modern era will be a targa-top version of the Veyron 16.4, but AutoExpress has revealed that production of the open-air exotica will be limited to just 80 units compared to the coupe's comparatively ample run of 300 cars. The cost of letting the sun shine through your Veyron's dome will also be more prohibitive, with a price tag creeping up on £900,000 compared to the £840,000 cost of the coupe. As with most open-air cars, the Veyron's chassis will be made beefier to cope with the loss of rigidity caused by a big hole in its roof. As such, the new car will weigh more than than the record-setting original. Top speed will therefore be relatively limited, if one can call a 217-mph top speed limited. Then again, as we learned while driving the car ourselves, every car is limited compared to the original Veyron.

Gallery: First Drive: Bugatti Veyron

[Source: AutoExpress]

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GM to reduce full-size truck production beginning in July

Damon Lavrinc — 2008-04-28T17:02:00+00:00

Filed under: SUVs, Trucks/Pickups, Plants/Manufacturing, UAW/Unions

Word just came in from General Motors that the automaker will be reducing shifts at four different plants that produce its full-size trucks and SUVs in an effort to bring production "in line with market demand". The output slowdown will begin on July 14th at GM's Flint, Janesville and Pontiac assembly plants, which produce the Chevy Heavy-Duty Silverado, Tahoe, Suburban, Silverado and GMC Yukon, Yukon XL and Sierra. The Oshawa truck plant will also be affected starting Sept. 8th. All told, the shift reductions will nix 80,000 full-size pickups and 50,000 full-size SUVs from GM's North American production capacity.

According to GM, both vehicles have lost ground in the market across the industry, with sales of full-size pickups dropping 15-percent and SUVs down 26-percent for the first quarter of 2008. This isn't surprising considering the cost of fuel right now and the subsequent reduced demand for larger vehicles. GM didn't provide specifics about how this would affect workers, only saying that it will "result in lower staffing requirements at all four plants," and that the details "would be worked out over the next several weeks with the UAW and CAW."

Naturally, GM felt the need to brighten up the lackluster announcement by highlighting that car and CUV sales are up. However, it hasn't made a decision to boost output of either type of vehicle in lieu of said increased demand. Check out GM's full press release after the jump.

[Source: GM, Photo by Scott Olson/Getty]

Continue reading GM to reduce full-size truck production beginning in July

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Trouble at the top? Toyota vehicles sitting longer on dealer lots

Jeremy Korzeniewski — 2008-04-28T14:59:00+00:00

Filed under: Car Buying, SUVs, Trucks/Pickups, Plants/Manufacturing, Scion, Toyota

Although Toyota has recently claimed the title of the World's Largest Automaker in terms of global sales, the Japanese-giant is finding out that life at the top isn't all it's cracked-up to be. While the Camry, Corolla, Yaris and Prius sedans are reportedly brisk movers, the same thing cannot be said about Toyota's line of trucks and sport utility vehicles. Toyota has cut Tundra and Sequoia production already, but dealers are still declining to purchase them, pushing the number of unclaimed units to an all-time high. Automotive News quotes an unnamed Toyota dealer as saying, "Last month, Southeast Toyota had 9,700 vehicles that had been turned down twice by dealers and are either sitting at the port or at sea. That's a significant number." Right now, Toyota/Scion has a high 58-day supply of available inventory on hand.

Some dealers, though, see the high number of available units as a blessing-in-disguise. "We've been asking for more inventory for two years and now we finally got it. This is a great opportunity. You have to take it when you can get it," says Steve Cain, general manager of Lewis Toyota-Scion in Topeka, Kansas. Regardless of your viewpoint, we expect that Toyota will align itself with market realities in order to bring production in line with actual sales sooner rather than later. In other words, if you've been in the market for a Toyota truck, chances are good you'll get a decent deal.

[Source: Automotive News - sub. req'd]

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Chrysler looking to sell two axle plants, get leaner and meaner

Damon Lavrinc — 2008-04-28T12:33:00+00:00

Filed under: Plants/Manufacturing, Chrysler

Chrysler is looking to offload two of its axle plants in an effort to limit its in-house parts production. The automaker has already offered to sell both plants to American Axle & Manufacturing and Dana Corp. for $400 million, according to sources cited by the Wall Street Journal. Unfortunately for Chrysler, however, there hasn't been much interest in the offer. The move could also include the closure of Detroit Axle and the purchase of Chrysler's unfinished plant in Marysville. All of this is further proof that the Cerberus-owned automaker is making a serious attempt to pair down its production facilities and lessen its overhead.

[Source: Wall Street Journal, Photo by Bill Pugliano/Getty]

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What will Volkswagen build at a new US factory? The Scirocco?

Sam Abuelsamid — 2008-04-27T15:03:00+00:00

Filed under: Plants/Manufacturing, Volkswagen

With Volkswagen due to make a decision about the location of its first US factory in more than two decades, the next obvious question is what to build there? We had a chance to pose that very question to Steve Keyes, GM of Public Relations for VW of America. According to Steve, the driving force for the factory is two-fold. First and most obvious is the exchange rate issue. With dollar being worth less almost daily against the Euro, it's increasingly difficult for VW to price cars competitively, especially in the mainstream segments where it primarily competes. The second reason is capacity constraints at the Peubla, Mexico factory that builds VW's highest volume US product, the Jetta. VW of America has set a target tripling combined sales of Audi and VW within the next decade.

Meeting those sales goals will require a lot more vehicles to sell at a competitive cost. So the first products out of the plant will likely be the highest volume products, the Passat and Jetta. If the plant is set up to build Jettas, then it could relatively easily be adapted to build any other model that shares the Golf/Jetta platform. That could potentially mean products like the Scirocco and even the Audi TT. Will we see these? Probably not at first, but if demand warrants, it could happen. So if you are all really serious about wanting the Scirocco on US shores, you should start pestering the head office (which just moved to Virginia last week).

[Source: Volkswagen]

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AC Cars moving to Brooklands and Michigan

Noah Joseph — 2008-04-25T11:29:00+00:00

Filed under: Sports/GTs, Plants/Manufacturing, UK

AC Cars, creators of the original Cobra on which Carroll Shelby built his legendary roadster, is planning two important moves. The sportscar-maker, owned by Acedes Holdings LLC, is currently based in Malta. However, legal troubles in the country have prompted the company to return to its original headquarters at the famous Brooklands facility in England. A second factory in Michigan where AC will build its classic sportscars for U.S. consumption is also in the works.

AC continues to manufacture the original Ace, Mk11, Mk11 FIA and Mk111, and is anticipated to build just ten units per year at an average price of £150,000 a pop. No word, however, on the new roadster, the rights to which Project Kimber acquired to resurrect AC after Smart cancelled the vehicle.

[Source: 4car]

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Strike at Malibu plant averted for now, Lucerne and DTS production to resume

Jonathon Ramsey — 2008-04-24T07:02:00+00:00

Filed under: Sedans/Saloons, Plants/Manufacturing, GM, UAW/Unions

GM is still dancing with the UAW over contract issues, now its doing it with local plants regarding items that weren't in the national agreement. However, The General has managed to wring two more days to negotiate before workers at its Fairfax assembly plant in Kansas City, KS, walk out. The 2,600 workers of UAW Local 31 churn out 3,100 Malibus every week.

Local contracts -- as opposed to the national agreement -- concern work-rule, seniority and other non-economic issues. The UAW Local says that GM isn't following the blueprint of the national agreement and is pushing for too much. GM says it is negotiating in good faith.

And Fairfax isn't the only plant affected. Strikes and idling due to rejected contracts have taken place at GM plants in Parma, Ohio, Lansing, Michigan, and Detroit-Hamtramck. Those interruptions have halted production of the Buick Lucerne and Enclave, Cadillac CTS, Saturn Outlook, and GMC Acadia. The Hamtramck plant is calling workers back, which will get the Lucerne and CTS in production again, but now the Malibu is on the block. GM has a 37-day supply of the hot commodity, and it also has another plant that builds Malibus. If GM and UAW Local 31 can't come to an agreement, Malibu production at the Fairfax plant will cease tomorrow.

[Source: Automotive News - Sub. Req.]

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