Considering their bankruptcy only seven months ago, GM must be breathing a sigh of relief at the news that consumer demand for some of their newer models, such as the Chevy Equinox, is outpacing their production ability.
They are not however, necessarily going to expand automated lines to increase production, but rather they will consider the use of body shops where vehicles will be built manually. This move will save the company the 20 months and over $100 million that would be required to start a functional automated assembly line. The vehicles produced manually will also garner a higher profit margin, which will help to offset labor costs incurred by the new manual shop which is rumored to possibly be located in GM”s dormant plant in Spring Hill, Tenn.
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There is still some conflicting news out there as one person close to discussions claims that a decision has been made and the process will be implemented in three months time, while another source says that options are still being considered.
With a current inventory of 390,000 vehicles, GM”s VP for sales Susan Docherty would like to see an inventory as large as 450,000, with particular increases in the stock of certain vehicles such as the GMC Terrain and its sister vehicle, the Chevrolet Equinox.
– By: Stephen Calogera
Source: Free Press