General Motors Corporation announced today that, in order to Align Output with Market Demand, it is scheduling multiple down weeks at 13 assembly operations in the United States and Mexico. Under this plan, approximately 190,000 vehicles will be removed from GM's North American production schedule in the second and early third quarter of this year.
There are three primary reasons for this scheduled downtime:
1. Dealer vehicle inventories are at high levels, given the current depressed market.
2. The shutdown will allow GM the opportunity to bring production in line with current market demand.
3. The downtime actions also consider the possible production implications of the complicated and difficult negotiations with Delphi and its debtor in possession lenders.
Aggressive Steps to get in tune with the Market
"We're taking aggressive steps to accelerate our inventory initiatives that have worked well since the first of the year. While sales have been performing at or close to our plan estimates, and dealer inventories have been reduced accordingly, we want to more closely align inventories with even more conservative market assumptions," said Troy Clarke, GM North America president. "By reducing our inventories even more aggressively we reduce pressure on GM and our dealers, and set ourselves up well for a clean 2010 model year start-up."
In the actions announced today, the plant down weeks are staggered and vary in duration, based on current inventory levels and expected demand for the products. Corresponding down weeks are also scheduled at GM's stamping and powertrain facilities. The scheduling actions do not impact operations that are in the process of launching new products, including the all-new Chevrolet Camaro built at Oshawa, Ontario, Canada and the Buick LaCrosse launching soon at the Fairfax, Kan. assembly plant. Launch vehicle schedules for the new Chevrolet Equinox and Cadillac SRX are also maintained.
photo:General Motors
There are three primary reasons for this scheduled downtime:
1. Dealer vehicle inventories are at high levels, given the current depressed market.
2. The shutdown will allow GM the opportunity to bring production in line with current market demand.
3. The downtime actions also consider the possible production implications of the complicated and difficult negotiations with Delphi and its debtor in possession lenders.
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| The temporary shutdowns do not impact GM Canada's Oshawa plant in Ontario where the new Chevrolet Camaro is being built. |
Aggressive Steps to get in tune with the Market
"We're taking aggressive steps to accelerate our inventory initiatives that have worked well since the first of the year. While sales have been performing at or close to our plan estimates, and dealer inventories have been reduced accordingly, we want to more closely align inventories with even more conservative market assumptions," said Troy Clarke, GM North America president. "By reducing our inventories even more aggressively we reduce pressure on GM and our dealers, and set ourselves up well for a clean 2010 model year start-up."
In the actions announced today, the plant down weeks are staggered and vary in duration, based on current inventory levels and expected demand for the products. Corresponding down weeks are also scheduled at GM's stamping and powertrain facilities. The scheduling actions do not impact operations that are in the process of launching new products, including the all-new Chevrolet Camaro built at Oshawa, Ontario, Canada and the Buick LaCrosse launching soon at the Fairfax, Kan. assembly plant. Launch vehicle schedules for the new Chevrolet Equinox and Cadillac SRX are also maintained.
photo:General Motors