GM to lose a week of crossover production due to parts shortage

Buick61 · 10-28-2009, 05:17 PM

Jamie LaReau
Automotive News
October 28, 2009 - 4:58 pm ET

DETROIT -- General Motors Co. is shutting down its plant in Delta Township, Mich., for one week starting Monday, Nov. 2, because of a “critical parts shortage,” a GM spokeswoman said today.

GM builds about 900 Enclaves and Acadias a day, or about 3,600 in a four-day, 10-hour-shift week. The plant is on a two-shift schedule, said Heidi Magyar, GM spokeswoman.

About 2,700 hourly and salaried employees will be laid off for the week. Some skilled trades workers will continue to retool the plant for the Traverse.

Magyar declined to say which critical part or supplier was causing the problem.

According to the Automotive News data center, as of Oct. 1 GM had a 63-day supply of Enclaves and a 94-day supply of Acadias.

Full Text (Sub. may be needed)

________________________________________
GM's Delta Township plant to close temporarily
WILX

Twenty seven-hundred workers at GM's Lansing Delta Township Assembly Plant will be laid off next week because of a critical part shortage. The plant should be back in business beginning Monday, November 9.

GM spokesperson Heidi Magyar declined to identify the part or it's maker, but reports in automotive publications on the internet are saying a maker of transmission parts in India has been shut down for more than a week because of labor problems.

Link

Buick61 · 10-28-2009, 05:19 PM

I know Ford is shutting down the Flex/Edge plant for the same Indian Supplier issue.

kmacleod · 10-28-2009, 05:49 PM

Quote:

Originally Posted by Buick61

I know Ford is shutting down the Flex/Edge plant for the same Indian Supplier issue.

Isn't this the same transmission co developed by Ford and GM?

Ken

Plague · 10-28-2009, 05:56 PM

Isn't GM going for a 45-60 day supply of vehicles? If so, looks like the Acadia could use some cuts.

Quickening · 10-28-2009, 06:25 PM

I know this is unrelated. But I was driving behind a Enclave yesterday. And WHY does this vehicle not have a LED taillights? As the most luxurious Lambda, it should. And it should have a separate brake and turn signal lights. As do all the Lambdas, GM is so inconsistent with the tail light functions.

Patate · 10-28-2009, 06:33 PM

Quote:

Originally Posted by Plague

Isn't GM going for a 45-60 day supply of vehicles? If so, looks like the Acadia could use some cuts.

Don't forget the days supply is Inventory / average cars sold everyday (for the last few months, I guess), then the number is higher since the last months weren't that good. I'd prefer to see the number of them in stock.

Also, since these models are expensive, it is normal to expect a higher number of day supply. Cobalts and Aveos are the ones that must come and go in the dealerships, Enclaves can be kept for a few months and still be profitable.

Burnout Czar · 10-28-2009, 07:08 PM

Quote:

Originally Posted by Buick61

I know Ford is shutting down the Flex/Edge plant for the same Indian Supplier issue.

Ah the joys of a global economy.

Suziebob · 10-28-2009, 07:14 PM

They wouldn't have this problem if they built the parts in America.

fp115 · 10-28-2009, 07:18 PM

Quote:

Originally Posted by Suziebob

They wouldn't have this problem if they built the parts in America.

Umm how exactly? If I remember correctly there have been several supplier in the US that went on strike a few months ago that affected production. This is such a silly argument.

dindak · 10-28-2009, 07:35 PM

Quote:

Originally Posted by Buick61

I know Ford is shutting down the Flex/Edge plant for the same Indian Supplier issue.

yEP.. My neighbor has been off all week.

Flex is selling well so it's painful for Ford.

jbernie · 10-28-2009, 08:17 PM

Quote:

Originally Posted by fp115

Umm how exactly? If I remember correctly there have been several supplier in the US that went on strike a few months ago that affected production. This is such a silly argument.

Well i suppose you could say that once the strike is over you can get your parts supply quicker as the distance is shorter. Overall it doesn't matter where you make a part, but you would want to have factories in countries that are no prone to unrest so the supply is more stable.

usa1 · 10-28-2009, 08:25 PM

Quote:

Originally Posted by Plague

Isn't GM going for a 45-60 day supply of vehicles? If so, looks like the Acadia could use some cuts.

Our local GMC dealer only has one. Maybe they are all at the factory... sigh.

Mark

Danko · 10-28-2009, 08:45 PM

That plant had scheduled down weeks so one more really will not hurt.

fp115 · 10-28-2009, 08:45 PM

Quote:

Originally Posted by jbernie

Well i suppose you could say that once the strike is over you can get your parts supply quicker as the distance is shorter. Overall it doesn't matter where you make a part, but you would want to have factories in countries that are no prone to unrest so the supply is more stable.

Not really... either way it shouldn't matter. If it takes 2 weeks for parts to get there versus 3 days. Then you would have the exact same downtime, the only difference is that the 3 day one would force production to stop sooner, whereas the 2 week one, they can continue production for 2 weeks before they need to stop. If there is a 3 week strike, the plant would be down for 3 weeks in each scneario.

In all scenarios, there are no benefits of building them in the US versus India. Especially since the quality is there and it is MUCH cheaper.

SierraGS · 10-28-2009, 09:38 PM

Quote:

Originally Posted by fp115

Umm how exactly? If I remember correctly there have been several supplier in the US that went on strike a few months ago that affected production. This is such a silly argument.

Why are you making the assumption that if a supplier is U.S. based that they are unionized and likely to strike every other month?

There are many suppliers that are not unionized and are very reliable in both quality and on time delivery at a competitive price, and for that matter many unionized suppliers who have not had a strike in years.

One thing that will always differentiate a U.S. (or Canadian) worker from one in India is that they can be both a supplier and a customer of the same vehicle, in this case an Enclave or Acadia. This "worker" can make the part today and later that day take delivery of a vehicle that uses the part that they made a couple of weeks ago, then when their friends ask about their new Acadia/Enclave they can recommend they buy the Lambda that used the part they made today.

The worker makes the part, buys the product and helps to sell another - not a bad setup.

10-28-2009, 05:17 PM	#1 (permalink)
Buick61 Chevrolet VOLT Join Date: Dec 2003 Posts: 10,945	GM to lose a week of crossover production due to parts shortage Jamie LaReau Automotive News October 28, 2009 - 4:58 pm ET DETROIT -- General Motors Co. is shutting down its plant in Delta Township, Mich., for one week starting Monday, Nov. 2, because of a “critical parts shortage,” a GM spokeswoman said today. GM builds about 900 Enclaves and Acadias a day, or about 3,600 in a four-day, 10-hour-shift week. The plant is on a two-shift schedule, said Heidi Magyar, GM spokeswoman. About 2,700 hourly and salaried employees will be laid off for the week. Some skilled trades workers will continue to retool the plant for the Traverse. Magyar declined to say which critical part or supplier was causing the problem. According to the Automotive News data center, as of Oct. 1 GM had a 63-day supply of Enclaves and a 94-day supply of Acadias. Full Text (Sub. may be needed) ________________________________________ GM's Delta Township plant to close temporarily WILX Twenty seven-hundred workers at GM's Lansing Delta Township Assembly Plant will be laid off next week because of a critical part shortage. The plant should be back in business beginning Monday, November 9. GM spokesperson Heidi Magyar declined to identify the part or it's maker, but reports in automotive publications on the internet are saying a maker of transmission parts in India has been shut down for more than a week because of labor problems. Link Last edited by Buick61 : 10-28-2009 at 05:25 PM.

10-28-2009, 05:19 PM	#2 (permalink)
Buick61 Chevrolet VOLT Join Date: Dec 2003 Posts: 10,945	Re: Part Shortage Forces GM Plant Shutdown I know Ford is shutting down the Flex/Edge plant for the same Indian Supplier issue.

10-28-2009, 05:56 PM	#4 (permalink)
Plague 1.8 Liter ECOTEC Join Date: Jun 2009 Posts: 59	Re: GM to lose a week of crossover production due to parts shortage Isn't GM going for a 45-60 day supply of vehicles? If so, looks like the Acadia could use some cuts.

10-28-2009, 06:25 PM	#5 (permalink)
Quickening 6.2 Liter LS9 Supercharged V8 Join Date: Oct 2005 Location: San Antonio, Texas Drives: 2004 Saab 9-3 Aero Posts: 6,042	Re: GM to lose a week of crossover production due to parts shortage I know this is unrelated. But I was driving behind a Enclave yesterday. And WHY does this vehicle not have a LED taillights? As the most luxurious Lambda, it should. And it should have a separate brake and turn signal lights. As do all the Lambdas, GM is so inconsistent with the tail light functions. __________________ 2004 Saab 9-3 Aero

10-28-2009, 07:14 PM	#8 (permalink)
Suziebob 3.0 Liter SIDI V6 Join Date: Jul 2009 Location: Southwestern Virginia Drives: 2003 Chevrolet Cavalier LS Sport Coupe Posts: 672	Re: GM to lose a week of crossover production due to parts shortage They wouldn't have this problem if they built the parts in America.

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10-28-2009, 08:45 PM	#13 (permalink)
Danko Banned Join Date: Aug 2009 Posts: 290	Re: GM to lose a week of crossover production due to parts shortage That plant had scheduled down weeks so one more really will not hurt.

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