Report: GM may reopen factories to keep up with high demand

General Motors had a tough 2009, but one very bright spot was the success of some of its newest models. GM North America President Mark Reuss has informed reporters at the Detroit Auto Show that the plants that build the Cadillac SRX, Chevrolet Equinox and Buick LaCrosse are already at full capacity and The General simply cannot meet demand. That's a good problem to have, and GM is working on a backup plan in the event demand for cars and trucks exceeds its current capacity.

The Associated Press reports that Reuss told the media that the solution to too much demand could be to reopen one of the General's shuttered plants. Reuss specifically pointed to the company's Spring Hill facility in Tennessee as a factory that could reopen to augment production, which makes sense in light of the fact that GM recently spent many millions of dollars to upgrade the plant to build the Chevrolet Traverse. Assuming GM can relight the fires at Spring Hill, that money would appear to be well spent, as Reuss reminded reporters that Spring Hill is flexible enough to build several different models.

GM has placed its Janesville, Wisconsin and Spring Hill plants on standby in the event that it needs more capacity when the U.S. auto industry begins to improve. Considering that new plants can cost over a billion dollars, we're thinking that's a pretty good idea.

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[Source: The Associated Press via Yahoo]