GM Production Update: CTS Problem; Crossovers Get Remix To Increase Enclave Output

[Perian]

Source: Various articles - www.automotivenews.com

DETROIT — Cadillac dealers can't get enough of the 2008 CTS sedans, but General Motors is struggling to build more of them.

Because of production snarls at GM's Grand River assembly plant in Lansing, Mich., a certain percentage of vehicles produced must be Cadillac STS sedans and SRX crossovers.

But those aging products are not hot sellers, and the plant can't switch over all its production to the CTS. In other words, GM's flexible assembly plant is not quite flexible enough.

The new CTS went on sale in September, and it's a hit. The average transaction price tops $38,000, a nice markup over the base sticker price of $33,400. Dealers say they want as many as they can get.

"We're short on the CTS, and that's a hot seller," says Dave Cosper, CFO of Sonic Automotive Inc. in Charlotte, N.C.

GM has a 16-day supply of CTS sedans. To satisfy demand, the company prefers a 40-day supply, but the Lansing plant can't keep up.

In part, GM is a victim of its own success. About 65 percent of CTS buyers want the up-level trim and more powerful V-6 direct-injected engine. Those vehicles take longer to build, so GM must make some easier-to-assemble SRX and STS sedans.

Article continues at link.

DETROIT — General Motors is boosting production of its hot-selling Buick Enclave crossover.

Over the next three months, GM will increase Enclave production, Bunnell said at the auto show. Monthly sales were projected at around 3,000 units but have been 4,000 to 5,000. The company sold 4,726 Enclaves in December.

GM will continue the two-shift operation at its plant near Lansing, Mich., where the crossover is built. But "we'll remix the plant to get the optimal build and have as many Enclaves as we possibly can," Bunnell said. "Over time, we'll see more month over month."

Full article at link.

[Perian]

Looking for a deal on the SRX or STS? Sounds like your wish will soon be granted.

Thus far in 2008, STS production is up 62% and SRX production is up 307%.

It also sounds like Saturn dealers will soon be stocking a few less Outlooks.

I was in a Saturn dealer on Sunday looking at the new Astra. The dealer has had them on the showroom floor since 01-14 and said I was the first customer to show interest in one. He has 8 in stock and is worried. IMO - Great car with a wonderful manual transmission. I wish my Saab had the same unit!

[hotrod1949]

Why can't they throw some temp stations online to take the spike away? Other plants build out of model mix all the time.

[prototype66]

high demand + low volume + successful sales and low overstock.
Too bad they didnt do that with the Outlook.

[paul8488]

The Enclave 'problem' isn't such a bad one... an example of platform sharing done right... the Outlook isn't all that hot but the Enclave is picking up the slack. Wait until the Traverse is on line... the Lambda plants will be humming nicely for some time to come!

I don't get why they need to produce 'easier to build' STSs and SRXs... even if a CTS takes longer, if there's more demand, does it not make sense? Why not build (making up numbers here) 400 CTSs a day and 100 STSs and SRXs instead of 200 CTSs a day and 400 STSs and SRXs? Why aim to build more cars if they're models that people don't want?

[JBsZ06]

Production planners might not have anticipated the raging success beautiful styling has on demand..

I could have told them but then GM didn't call to ask me.. (kidding)

They'll figure it out and make it happen..

Always nice when consumers want the uplevel products in the line.

Its a good problem to have...

[04bonnie]

Does anyone on here work at a dealer, or know when the latest date you can order an 08 Enclave this year? Just curious when they cut off orders, and switch to the 09 MY.

[Buick61]

Make sense this doesn't.

Doesn't the STS V6 have the same engine as the CTS DI? Why would that be easier/quicker to make, then? I'm sure they're not just slapping the Northstar in all of them, as that seems to be increasingly unpopular.

[hotrod1949]

Originally Posted by Buick61

Make sense this doesn't.

Doesn't the STS V6 have the same engine as the CTS DI? Why would that be easier/quicker to make, then? I'm sure they're not just slapping the Northstar in all of them, as that seems to be increasingly unpopular.

I think they are suggesting uplevel CTS take more assembly line time, and in order to run the line at a certain speed, the mix must include a number of STS and SRX. Each assembly process for each vehicle would have a time value added to it, and the combined average must equal a number that fits in the assemblers fixed time.

[Perian]

Originally Posted by 04bonnie

Does anyone on here work at a dealer, or know when the latest date you can order an 08 Enclave this year? Just curious when they cut off orders, and switch to the 09 MY.

The last day your Buick dealer can place an order for the 2008 Enclave is April 4th.

[Steel4ring]

This is exactly why the CTS coupe will be 18 months away......everyone was crying why it takes so long....well heres an example, it takes time to reconfigure the line, while also trying to keep the pipeline full of other products.....challenges folks on this board often forget.

[04bonnie]

Originally Posted by Perian

The last day your Buick dealer can place an order for the 2008 Enclave is April 4th.

thanks, that's a little early cut off in my opinion, but maybe I could make it work. Also, wondering when 09 orders start, and if they would be in before the end of 08 because of the GM Supplier for friends discount promotion.

[CmicasatheGreat]

Two things I like about this...

The more profitable and more POWERFUL Direct injected CTS is selling at 65% of CTS sales. This is good for a number of reason... one being that when the the STS is cancelled it allows for Cadillac to better reposition, the then, upgraded CTS (with even more power and refinement) to a higher price range more in tune to it's competitor the 5series... and it allows one to see that the more expensive 3.6L Di is getting the attention it deserves. The more GM Bean-counters (yes they still exist) see the Direct Injected tech being put forth in the better selling cars... the more likely they are to allow for the Direct Injection system to be made company wide to other engines including the OHV V8s.


One the Enclave front I am ecstatic that the most expensive Lambda is getting by percentage the best sales. It already outsells the Outlook.... the least expensive one... and is now creeping up on the Acadia... in some cases in the same dealership, as there are many GMC-Buick-Pontiac Dealers now.

[caddycruiser]

Originally Posted by 04bonnie

thanks, that's a little early cut off in my opinion, but maybe I could make it work. Also, wondering when 09 orders start, and if they would be in before the end of 08 because of the GM Supplier for friends discount promotion.

It's actually not early, and close to the norm for a lot of GM vehicles.

As that is...information on '09s should start appearing in March sometime, and after the order bank is closed for '08s, it should open for '09s about a month later in May.

[04bonnie]

Originally Posted by caddycruiser

It's actually not early, and close to the norm for a lot of GM vehicles.

As that is...information on '09s should start appearing in March sometime, and after the order bank is closed for '08s, it should open for '09s about a month later in May.

thanks, that's good information. ARe you a car dealer....or if not, how do you know? Just curious...thanks for the info.