With an unexpectedly large pick up inventory, GM has decided to cancel five Saturday overtme shifts that were originally planned for September and October for the Flint, Michican assembly plant.
Tom Wickham, GM Spokesman says the reason behind cancelling the shifts is “strictly to make sure that or inventory remains at the appropriate level, as opposed to producing too many vehicles.”
GM’s Fort Wayne, IN plant also had its shifts cancelled through the end of the year.
Full sized pickups have remained in GM’s inventory due to gas prices and economic downfalls. Whereas analysts say the average inventory for these vehicles is around an 80-day supply, GM was up to a 122-day one as of June, which then dropped to 115 days by July’s close.
An increase in demand is still anticipated for the second half of the year, and GM is will also need to work on next years inventory. The 2013 model will also need to begin production, and the plants will be closing in preparation.
Despite the overtime cancellations, the recently added third shift is not going to be effected.
By: Alexandra Koken
Source: Automotive News