GM to increase North America production, reinstates 1,350 jobs

2009 Chevrolet Cobalt XFE Sedan

General Motors announced today that it will increase production at several North American plants in response to increased sales coming from the government’s Cars Allowance Rebate System (aka Cash for Clunkers).

GM said that it will add shifts to its Lordstown (Ohio) and CAMI (Ontario, Canada) plants and will add 60,00 cars and trucks to its production schedule.

The move is expected to reinstate a total of 1,350 UAW and CAW jobs.

Follow the jump for the press release.

Press Release:

GM Increasing North America Production, Adding Jobs to Meet Demand

– Company adds 60,000 cars and trucks to production schedule
– Adds shifts of production to its Lordstown (Ohio) and CAMI (Ontario, Canada) plants
– Reinstates 1,350 jobs

Detroit – General Motors is increasing production at several North America assembly plants in response to increased sales. The company will add shifts, overtime and reinstate forecasted down weeks at select facilities. As a result, GM will add about 60,000 vehicles in the third and mainly the fourth quarter production forecast, ensuring a wide selection of high-quality, fuel efficient cars, crossovers and trucks for customers.

To help meet the increased demand, GM is adding shifts at CAMI, Ontario, Canada where the next generation Chevy Equinox and all-new GMC Terrain are built and Lordstown, Ohio where we build the fuel-efficient Chevy Cobalt. This will bring approximately 1,350 UAW and CAW employees back to the assembly lines. The Chevy HHR and Colorado and the GMC Canyon are also experiencing increased demand. Based on consumer reaction to the Chevy Camaro, Cadillac SRX and CTS Wagon and the Buick LaCrosse, we anticipate the need to increase production at our plants will continue.

“We are running our plants to maintain maximum flexibility and keep production tightly aligned with customer demand,” said Tim Lee, GM group vice president, global manufacturing and labor. “The uptick is an encouraging sign that vehicle sales are turning around, and we will ramp up quickly to meet that demand.”

In July and August, the popular Cash for Clunkers program generated substantial demand for a broad range of fuel efficient vehicles within GM, including the Chevy Aveo, Cobalt, HHR, Malibu, Equinox and Colorado. This latest round of production increases will go a long way in rebuilding dealer inventories to help us meet strong consumer demand.

“It’s gratifying to see demand for our products accelerate and we are extremely lean with inventories on our launch products like Camaro, Equinox, LaCrosse, SRX, CTS Wagon and Terrain,” said Mark LaNeve, vice president, U.S. sales. “During the third quarter 2009, we’ve added production which will result in 35 percent increase over the second quarter. With today’s announcement of further additions, the fourth quarter will now be at least 20 percent higher than the third quarter, which is a very positive trend.”

– By: Omar Rana