GM Increases Production as Inventories Fall

Edward Niedermeyer
by Edward Niedermeyer

After months of “deeper, harder, faster” cuts, GM is increasing its production numbers again. “We want to run lean, but we’re way too lean right now and we’re going to miss sales unless we put some production in,” explains GM sales honcho Mark LaNeve. He tells Automotive News [sub] that output will increase 35 percent in the third quarter to 535k units, and “at least” a further 20 percent in the fourth. “And it’ll probably go up from there,” says LaNeve. “Our dealers are clamoring for more vehicles in every segment.” Camaro, Equinox, SRX and Buick LaCrosse are said to be in especially short supply as GM’s nationwide inventory hit 360k units. Though much of the inventory shortfall is the result of Cash for Clunkers, GM’s cup-o-optimism runneth over.

“We look for pickups to continue to accelerate along with a recovery in the housing industry and overall economy,” says LaNeve. And he’s not kidding. The Arlington [Texas] Yukahoburbelade plant is getting overtime this month along with Fort Wayne’s Silverado/Sierra production. CAMI is adding shifts to increase Equinox/Terrain production while Lordstown is bumping up Cobalt production. Orion Township, which was due to be shuttered in September for retooling, will continue to pump out Malibus until November.

“We’re adding 60,000 units to our production schedule,” LaNeve says. “We’re probably not done, but this is what we’re ready to talk about today.” And when Cash for Clunkers plays out and leaves a smoking crater where all those pulled-forward sales used to be? GM will go back to right-sizing, shift-cutting, inventory management, fire sales, channel stuffing and the other depressed-cycle tricks of the trade. Meanwhile, enjoy the buzz.

Edward Niedermeyer
Edward Niedermeyer

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  • Chinar Chinar on Aug 19, 2009

    $1.7b / $ 4000 = 425000 units (i believe $ 1.7b is the amount used up for C4C so far) GM share 18% = 425000 * 18/100 = 76500 units 60000 units added production seems about right

  • Jerry weber Jerry weber on Aug 20, 2009

    If the American car companies pulled sales from future months because of the clunker deal, then what? Is it back to discounts by next year? If they cut production will there be any suppliers still left to make parts? Will they have to keep as GM and Ford are doing, putting hundreds of millions into these bankrupt former captive suppliers just to keep them and the parts alive? What will be the real price of the cars built at a lower volume and without discounts? When all of these questions are answered we will know if the new Govt program is once and done or will it have to be on going.

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
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