General Motors raising output at 3 factories
Photo 
In this Aug. 3, 2006 file photo, General Motors workers test equipment along the assembly line at GM's newest assembly plant in Delta Township, Mich. General Motors Corp., said Tuesday, Sept. 22, 2009, it will add a third shift to its Fairfax plant in Kansas City, Kan., in January. That will be followed in April by third shifts at factories in Delta Township, Mich., near Lansing, and Fort Wayne, Ind. The company says about 2,400 workers will be recalled at the three plants because of the production increases.
DETROIT — General Motors Co. will go to 24-hour operations at factories in Kansas, Michigan and Indiana to handle an expected increase in demand and to make up for production lost from a large-scale factory consolidation announced earlier in the year.
The automaker says it will add a third shift at its Fairfax plant in Kansas City, Kan., in January. That will be followed in March or April by third shifts at factories in Delta Township, Mich., near Lansing, and Fort Wayne, Ind.
About 2,400 production workers will be recalled as a result of the added shifts, and another 600 will be recalled at parts factories across the country, said Tim Lee, group vice president for global manufacturing.
The increases announced Tuesday, coupled with other production increases unveiled during the summer, will allow GM to raise North American production from about 1.9 million vehicles this year to 2.8 million in 2010, Lee said.
The increase also is necessary because of an expected sales increase next year and because GM's inventory of cars and trucks was at a record-low level of 378,000 at the end of August, said Mark LaNeve, vice president of U.S. sales.
The Fairfax plant makes the midsize Chevrolet Malibu, Saturn Aura and Buick LaCrosse, while Delta Township makes the Buick Enclave, GMC Acadia and Saturn Outlook large crossover vehicles. The Fort Wayne factory makes pickup trucks.
GM says in a statement that Fairfax will get all production of the Malibu when a midsize car factory in Orion Township, Mich., closes Nov. 25. It will be converted to a small-car plant and reopen in 2011.
Delta Township will get production of the Chevrolet Traverse large crossover when the Spring Hill, Tenn., factory that now makes the vehicles closes, also on Nov. 25. That plant will go on standby in case demand increases.
Fort Wayne will add production of heavy-duty versions of the GMC Sierra and Chevrolet Silverado pickups that are being made in Pontiac, Mich. That factory is to close at the end of September, the company said in a statement.
Lee said GM will not hire new workers to staff the additional shifts. Instead, the company generally will first offer the jobs to workers at the plants that will be closed. After that, they will be offered to workers in the region and then across the nation, he said. GM, under its contract with the United Auto Workers union, will pay to move workers from other cities, he said.
Although the company's dealer inventory is low now, it will take a minimum of three months to add the shifts because workers must be moved and because machinery must be disassembled and moved from Spring Hill and Pontiac, the company said.
"This is a massive move for us in terms of the transference of people," Lee said.
GM's September sales have been slow following the end of the government's Cash for Clunkers program, LaNeve said. The company, though, predicts an increase in total U.S. sales from 10.5 million this year to 11.5 million to 12 million next year, he said.
Currently GM has about a 40-day supply of large crossover vehicles, a 52-day supply of Malibus and a 60-day supply of Silverado pickups, according to Ward's AutoInfoBank.
Jeff Schuster, executive director of forecasting at J.D. Power and Associates, said GM has a low supply of many models and should have 1.5 to 2 times what is now on dealer lots. The low inventory, combined with an expected uptick in sales starting next year, means the production increase is justified, he said.
"They've got some successful vehicles now. The new products are doing well," Schuster said, adding that it's reasonable to assume GM will pick up a share of any increase in overall U.S. sales.
Brian Fredline, president of the UAW local at the Delta Township crossover plant, said the increase at his factory is not just due to the closure of the Tennessee plant.
"It's because we have increased demand for our product," he said. "We build a world-class vehicle and the marketplace is responding to it."
Workers at the plant, while unhappy that Spring Hill is closing, are happy to get the additional work, Fredline said.
"It creates job and income security for our UAW workers," he said. "Any job and income security in this economic climate is a good thing."
GM plans to move tooling for the Traverse from Spring Hill later this year, and hopes to begin build Traverses, which are similar to the GMC and Saturn crossovers, by January of next year.
About 800 workers will be recalled at Delta Township, 900 in Kansas City and 700 in Fort Wayne, Lee said.
Last month GM announced it would add shifts at factories in Ingersoll, Ontario, and Lordstown, Ohio, mainly in the fourth quarter. The Ontario plant makes the brand-new Chevrolet Equinox and GMC Terrain crossover vehicles, both of which get 32 mpg on the highway. Lordstown makes the Chevrolet Cobalt small car, GM's highest mileage vehicle at 37 mpg on the highway.
Production also was to be boosted at other North American factories, including those that make the Chevrolet HHR small wagon, the Chevrolet Colorado and GMC Canyon midsize pickups, the Chevrolet Camaro muscle car, Buick LaCrosse sedan and the Cadillac SRX and CTS Wagon.
Sep 24, 2009 at 4:47 p.m.
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GM is not coming back to Janesville. UAW, the workers and GM management caused this company and the plant to fail. People on these boards should not be spreading rumors and making false statements.
Stop the insanity!
Sep 24, 2009 at 4:29 p.m.
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Yea Pete GM will be back to Janesville, just as soon as a Republican is elected. Thats why I am not going to get another job, I will just wait this thing out until Obama is out of office, then get a sweet GM job at the old plant. Thanks Pete - for some reason I was worried GM would not be back, your Obama comment really cleared things up for all of us.
Sep 24, 2009 at 8:49 a.m.
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O.K. - I went onto GM's website and the 'so-called' 60 day/4K return policy is a gimmick, no less, to get people into the showrooms. Who in their right mind would lose out all of the taxes (including sales tax which on 20K is 1K), title, license fees and REBATES (yes - according to GM's website, you do not get back the rebates on GM vehicles which right now are anywhere from $1000 up to 5K- OUCH!). Also, you cannot get back your traded in car if still available for sale which sucks. The only good news according to GM's website is you can opt out of the buyback program and receive and addtl. 500 bucks instead which for me is just like an another incentive/rebate. I think whoever thought of this gimmick is a mktg. BSer and stupid to have GM of GM advertise this on TV as a way to say, 'hey, we are so entrusted in our quality of our GM vehicles that if you are not completely satisfied with your purchase before 60days/4K is up, you will get your full purchase price back' which is NOT true since out taxes and rebates which for GM is a lot since their rebates are pretty high right now. Total BS!
Sep 24, 2009 at 8:34 a.m.
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Pete, Czar Van Jones resigned. But you knew that as you are so well informed. I am still trying to figure out how you come to such enlightened ASSumptions, lol. Oh never mind I really do not care. Another anonymous blogger spewing incoherent ramblings.
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janesvillean and madeintheusa are spot on.
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I am with you cookiedough! Good News is Good News!
Sep 24, 2009 at 8:04 a.m.
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I would be surprised if the 60 day deal is as simple as it sounds. It will be interesting to see how it works out. I think that most people will not want to return a vehicle that soon and, of course, GM does also. The desire to return will be more likely to begin around six months to a year when the thrill of the newness wears off and the financial pressure of the payments becomes more evident. I have a feeling that if you do buy a vehicle and return it, you are going to be out several thousand dollars in fees and taxes. And what about your trade-in vehicle? That will be long gone.
Sep 24, 2009 at 12:04 a.m.
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I think it is great GM is hiring back people. Anybody saying differently right now in this lackluster economy is ignorant. Just because it is NOT in Janesville doesn't mean you all have to be pouting about it. Try to be optimist for a change. Jobs are good! How long they last is another story. I also find it odd that I can go buy a new GM vehicle, beat the piss out of it and drive it cross country 4,000 miles under 2 months old and go back to the dealer and say no, I do not like it, give me my full purchase price back please. Who in the world thought of this - Obama administration? There has to be a catch in the fine print somewhere or am I missing something?
Sep 23, 2009 at 10:51 p.m.
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What happened in Janesville is a natural occurance among old production facilities. They will never open this plant up again. It will sit for a couple years and then when the property value plummets a couple million more they'll come in and disassemble everything and take it to the junk yard for whatever scrap they can get out of it. The grounds will be donated to Janesville to give up the obligation to clean up ground contamination and then Janesville will have another bill to pay in a dead local economy. Look at what happened in Michigan when the auto makers pulled out of Detroit. The same thing happened in beloit when Fairbanks and the Beloit Corp took a crap during the last part of seniors top spot in the white house.
Sep 23, 2009 at 10:08 p.m.
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flyyondawal: That is seriously funny yet sad at the same time. People forget it won't be 29 DPH with top benefits anymore. That said, even 14 with lousy benefits is a massive improvement over the current options.
Sep 23, 2009 at 8:13 p.m.
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Hope they retool and hire i could use a solid $12hr job.....wait for it...wait for it
Sep 23, 2009 at 6:35 p.m.
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WHO REALLY CARES!!!!!!
Sep 23, 2009 at 5 p.m.
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'The increase also is necessary because of an expected sales increase next year'
dear gm,
could you please give me a car on loan, NOW, without me paying for it NOW?? just curious. i totally expect to win the lottery next year and i will pay you back then. let me know if your prophets see this happening too.
yours sarcastically and doubtfully,
kid
Sep 23, 2009 at 4:54 p.m.
Sep 23, 2009 at 4:36 p.m.
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This is the basic problem:
http://graphics8.nytimes.com/images/2009...
Sep 23, 2009 at 2:37 p.m.
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Please leave the dead horse in peace..........
Sep 23, 2009 at 2:22 p.m.
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There's no way G.M. will reopen Janesville. Consider all of its orbiting suppliers from this area alone that shut down after they abandoned us. They're not going to truck / train / fly all of the components in that used to be produced right here in town.
Sep 23, 2009 at 9:02 a.m.
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Lost_city: Even if GM announced today that they have a new product for Janesville it will take quite some time to retool the plant. Most likely long after unemployment has run out for most people. Honestly, if you read past the fluff in this article, it basically says that GM is ramping up production for two reasons. The first reason is to refill cash for clunker inventory lows. The second is to cover plants that are scheduled to close by the end of the year. Although I think GM Janesville may get a product in the future, I think people need to think in terms of years. Janesville will still need to address the local business climate.
Sep 23, 2009 at 8:17 a.m.
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Does this mean the Janesville plant will re-open? GM said Janesville is the next plant to get a product if demand is rising, well it's rising. Does anyone know where they would be taking apps?
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