GM plans to add third shifts at three plants, including Fairfax, Kansas, which will become the sole source of the Chevrolet Malibu.
Though the Cash-for-Clunkers program may have provided only a temporary boost to the overall automotive market, there are some encouraging signs of life, notably with General Motors announcing plans to boost production at three Midwest plants, a move that will restore 2,400 jobs as it is in the process of c;osing at least three others.
The move comes barely a month after GM announced another minor job increase, in part, to rebuild inventories after the Clunkers program.
As part of this latest move, the long-troubled U.S. maker will be adding third shifts at three of its plants:
The Fairfax, Kansas line will now be the exclusive production source for the popular Chevrolet Malibu sedan. The facility also produces the all-new, 2010 Buick LaCrosse, as well as the Aura, the mid-size sedan being produced by GM’s Saturn division. Plans call for Saturn’s sale to automotive mega-entrepreneur Roger Penske;
Fort Wayne, Indiana will add production of the heavy-duty versions of Chevrolet’s Silverado pickup and GMC’s Sierra. The downside is that these trucks were previously produced in Pontiac, Michigan, at a plant that will be closing at the end of this month;
And Lansing Delta Township, the newest and most modern of GM’s U.S. assembly lines, which will add production of the Chevy Traverse. As with Fort Wayne, the Delta Township plant’s production increase comes at another factory’s expense. Traverse was being assembled in Spring Hill, Tennessee. That line will be idled, in November but remain on standby should GM eventually need more capacity.
“Today’s actions enable GM to add production shifts and maximize the utilization of several of our plants,” said Tim Lee, Group Vice President Manufacturing and Labor Relations. “In turn, we are better positioned to deliver the vehicles our customers’ desire and put thousands of employees back to work that would have otherwise been laid off.”
GM previously announced it would add a second shift at its Lordstown Complex, near Cleveland, Ohio. That factory currently produces the Chevrolet Cobalt, which gained significant sales under the Clunkers program. Next Spring, Lordstown also will begin production of a new Chevy small car, the Cruze.
There’ve been a number of modest increases in production, across the industry, since the government wrapped up what was officially known as the Cash Allowance Rebate System, or CARS, impacting both domestic and foreign-based manufacturers. But with the new car market slumping sharply since the Clunkers program wrapped up, most manufacturers are reluctant to boost production much, fearing they could once again wind up with excess inventory that would lead to another round of costly incentives to clear out.