GM's Fairfax plant revs up for fuel-efficient vehicles

[doh]

http://kansascity.bizjournals.com/ka...html?ana=yfcpc

General Motors Corp. has its Fairfax Assembly Plant in Kansas City, Kan., working overtime to meet increased demand for more fuel-efficient vehicles.

Jeff Manning, president of United Auto Workers Local 31, said employees worked mandatory eight-hour Saturday shifts on June 21 to meet demand. Manning said that was the last opportunity to add extra production for the 2008 Chevrolet Malibu and Saturn Aura. The plant is switching production to 2009 models, with a goal of being up and running by Friday.

Manning said the new labor agreement between the union and management includes working six Saturdays during the 2009 model year.

The plant also is on an overtime schedule, which entails 10-hour shifts five days a week, along with the six scheduled Saturdays spread between now and December, he said.

"It's pretty much in stone, in the agreement," Manning said. "If they need more than the six Saturdays because the market demands it, I'm sure we could talk. We want to make GM as many cars as they can sell."

Chris Lee, corporate spokesman for General Motors (NYSE: GM), said consumer demand is shifting from large trucks and sport utility vehicles to smaller crossover vehicles and cars like the Chevrolet Malibu and Saturn Aura, which are produced at the Fairfax plant.

"We're adding some extra production at the Fairfax plant," Lee said. "We're very excited about how sales of our cars have increased, including the Malibu and certainly the Aura. It's bittersweet though, because market demand moved away from trucks and SUVs, but we're really excited about what is going on at Fairfax."

[Ming]

Chris Lee, corporate spokesman for General Motors said "It's bittersweet, because market demand moved away from trucks and SUVs,"

Ugh, way to convince us that GM really wants to build and sell smaller, more fuel efficient vehicles... Chris' statement comes off as how I imagine many corporate big wigs at GM, dragging their feet with slumped shoulders, unhappy about not being able to sell the biggest, most profitable vehicles possible.

What they need is a corporate infusion of tech-saavy youth to come in and sweep away these notions and replace them with an obsession for engineering, high tech, and building the most cutting edge, versatile vehicles possible on a small footprint.

Perhaps I'm just nitpicking a tiny part of what he said (after all he did also say "We're very excited about how sales of our cars have increased"), but the comment about SUVs was really not neccessary in the context of his interview, and I think it shows us a sort of backward-thinking side of GM that many of us (well, at least I) suspect exists -- that GM would like to be an SUV and Truck company first and foremost if only the market would allow it.

That kind of company mindset is not going to convince people to buy its smaller cars. The public will go instead to a company where smaller cars are respected and engineered with enthusiasm and zeal, and are backed with as much marketing and advertising dollars as any truck or SUV.

[CaptainDan]

Originally Posted by Ming

Ugh, way to convince us that GM really wants to build and sell smaller, more fuel efficient vehicles... Chris' statement comes off as how I imagine many corporate big wigs at GM, dragging their feet with slumped shoulders, unhappy about not being able to sell the biggest, most profitable vehicles possible.

What they need is a corporate infusion of tech-saavy youth to come in and sweep away these notions and replace them with an obsession for engineering, high tech, and building the most cutting edge, versatile vehicles possible on a small footprint.

Perhaps I'm just nitpicking a tiny part of what he said (after all he did also say "We're very excited about how sales of our cars have increased"), but the comment about SUVs was really not neccessary in the context of his interview, and I think it shows us a sort of backward-thinking side of GM that many of us (well, at least I) suspect exists -- that GM would like to be an SUV and Truck company first and foremost if only the market would allow it.

That kind of company mindset is not going to convince people to buy its smaller cars. The public will go instead to a company where smaller cars are respected and engineered with enthusiasm and zeal, and are backed with as much marketing and advertising dollars as any truck or SUV.

If GM find's employees that don't want to sell "the most profitable vehicles possible", fire them immediately!

[Rocket 88]

Originally Posted by Ming

Ugh, way to convince us that GM really wants to build and sell smaller, more fuel efficient vehicles...

That kind of company mindset is not going to convince people to buy its smaller cars. The public will go instead to a company where smaller cars are respected and engineered with enthusiasm and zeal, and are backed with as much marketing and advertising dollars as any truck or SUV.

On the money Ming!

GM and the dealerships need to stop steering people to what they want to sell and just sell all their products with the same enthusiasm. I understand why it is done, but it is bad business practice and consumer notice it. Plenty of folks get frustrated and go elsewhere.

Just because customers don't want to buy the product you will make the most money on does not make them second class customers.

[likearock00]

GM has been selling the highly profitable trucks and SUV's for years now, and yet they go into the red for the past 4-5 years. What's going to happen now that they have to sell the cars to make ends meet?

[Rocket 88]

Originally Posted by CaptainDan

If GM find's employees that don't want to sell "the most profitable vehicles possible", fire them immediately!

You need to sell all of your vehicles, not just the most profitable ones.

If you walk into a delaership and the want to buy a small car, but the dealership keeps trying to push you into a larger vehicle (because it has a higher profit margin) some folks may buy it, but pleanty of folks leave. Then they go buy the small car from your competitor.

Next time they want a vehicle they're not comming back to visit you.

[Ming]

Sorry for the off topic...

Originally Posted by CaptainDan

If GM find's employees that don't want to sell "the most profitable vehicles possible", fire them immediately!

GM could make money on smaller cars. They just have to stop treating cars smaller than a Malibu like penalty boxes (and to be accurate, it wasn't until the new Malibu that they did even with Chevy mid-sizers). Look at BMW, MINI, etc.

Originally Posted by Rocket 88

GM and the dealerships need to stop steering people to what they want to sell and just sell all their products with the same enthusiasm. I understand why it is done, but it is bad business practice and consumer notice it. Plenty of folks get frustrated and go elsewhere.

Tell me about it! I can't count how many times I've been to a GM dealership looking at a Sunfire, Canyon, Malibu Maxx, Aveo or HHR, only to have the salesman try to lead me over to the long line of SUVs they really want to sell me instead. Ford dealers were no better when I went searching for a Focus Wagon (never did find one - they said they'd "order one" and call me, but never did). The most bizarre thing about the Ford Focus Wagon deal was that the salesman told me that whenever they got the wagons in they would sell out quickly! Priorities, I guess. Get someone into a larger, more profitable vehicle if you can. And I have to think that despite that being a dealer thing, that GM and Ford were hardly pushing to sell those cars either, given the puny TV ad budget and nonexistent incentives for the Colorado, for instance.

Originally Posted by likearock00

GM has been selling the highly profitable trucks and SUV's for years now, and yet they go into the red for the past 4-5 years. What's going to happen now that they have to sell the cars to make ends meet?

It's a valid question that I can't ignore as a GM fan. I want them to be known for building great small cars, too, but I don't want them to go under. All I can say is that they need some hits like the MINI. My father bought one recently, and the dealership was packed with people willing to shell out big bucks for small cars.

The HHR was a valiant effort, but was far too much of a "me-too" PT Cruiser.

Here's his new MINI Clubman S. Quite nice with brown leather seats inside with just enough cargo room to make a wagon fan like me happy.

[WishIhadatruck]

I agree with you Ming but he almost has to say what he says otherwise he'll come across to the employees at the truck/suv plants as an unsympathetic jerk. Even if they REALLY DID want to sell cars more than trucks you can't feel good about closing truck plants. If you worked at a truck plant I'm sure you'd feel differently if you were losing your job soon.

They need to fast track the new small cars ASAP. I hope they are being accelerated even faster than the 900's were. It really is critical. I'd say more critical than the Volt. Lets hope they have the resources to not short change any other vehicles in the mean time.

That Mini Clubman is a very nice looking car. Functional, good looking and fuel efficient. Of course when I try to build one on their website it becomes way to expensive. The options are too tempting!

[CamaroCrazy]

While I agree with some of the points Ming makes, GM is a business. What business would look at the high profit margins offered by SUVs and trucks and not try to wring every last penny out of the market for them? That's why Toyota went through a major redesign of the Tundra and Sequoia, Nissan launched the Titan, and even Kia launched a BOF SUV.

GM has been blasted enough for neglecting their cars in the process, but lets not rip them for loving the products that do what a business is supposed to do - make money.

The market has changed and now GM must adapt. Looks like they're doing it.

[windvale]

Originally Posted by CamaroCrazy

GM has been blasted enough for neglecting their cars in the process, but lets not rip them for loving the products that do what a business is supposed to do - make money.

Trucks/SUV's were the devil's candy, and GM couldn't eat it fast enough. Sure, profits were high on trucks - but GM didn't invest those profits into alternative vehicle offerings (hybrids, etc.) that would position themselves to be profitable in any possible future environment (i.e. expensive gas).

For this I fault GM management - being incredibly short sighted and overly optimistic (i.e. assuming that all things would continue as they always have). Leadership is just that - LEADership. GM's "leadership" is really just a bunch of reactive followers. Show me one area where they have led ? And don't say two-mode hybrid trucks - go to a dealer and try to buy one...they don't exist.

[Ming]

Originally Posted by WishIhadatruck

I agree with you Ming but he almost has to say what he says otherwise he'll come across to the employees at the truck/suv plants as an unsympathetic jerk. Even if they REALLY DID want to sell cars more than trucks you can't feel good about closing truck plants. If you worked at a truck plant I'm sure you'd feel differently if you were losing your job soon.

Ah, good point. I hadn't considered the UAW angle.

Originally Posted by windvale

Trucks/SUV's were the devil's candy, and GM couldn't eat it fast enough.

I love that. It's quotable.

[appman]

I think what the spokesman was trying to say was that "it would be nice if BOTH the trucks and the cars were hot selling, but we are happy with the increased car sales". GM's trucks and SUV in my opinion are some of the best products in the market, but they are clearly taking cars more seriously. GM finally put some effort into the 'Bu and now they are flying off the lots, go figure.

[zete]

Originally Posted by Ming

Ugh, way to convince us that GM really wants to build and sell smaller, more fuel efficient vehicles... Chris' statement comes off as how I imagine many corporate big wigs at GM, dragging their feet with slumped shoulders, unhappy about not being able to sell the biggest, most profitable vehicles possible.
:

I took the quote to mean that they had hoped to win on both fronts: trucks/SUVs and cars, and truck sales are falling while their new cars are doing great. I figure from their prior attitude that they figured they finally had everything aligned for winning in both markets, and then the price of oil went stupid.

[member12]

Originally Posted by Rocket 88

You need to sell all of your vehicles, not just the most profitable ones.

If you walk into a delaership and the want to buy a small car, but the dealership keeps trying to push you into a larger vehicle (because it has a higher profit margin) some folks may buy it, but pleanty of folks leave. Then they go buy the small car from your competitor.

Next time they want a vehicle they're not comming back to visit you.

Sometimes, the opportunity cost of keeping those buyers away from the competition is enough to sell the car at cost or slightly lower. GM may be willing to lose $200 per car if it means that those sales are not going to Ford, Toyota, or Honda. This is probably more true with F150s and Tahoes (since they have a "best selling" title to protect) than with Malibus or Fusions. People are switching to smaller cars...and GM needs to realize that while there is still a demand for vehiles like the Tahoe and they have to maintain leadership to keep Toyota from soaking up what's left of that market (They abandoned the Trailblazer when the 4runner went on sale), GM also doesn't want to lose those folks "downsizing" their cars. A Tahoe driver might downsize to a 4runner for better mileage. A Equinox driver might switch to a 4 cylinder Malibu (or Accord).

For example, GM may only make, say, $1000 on a Aura sale...but if a buyer is seriously considering an Accord and an Aura, then GM should be willing to let the Aura go at cost because it means that the person would have chosen an Aura over an Accord...and quite possibly (if history repeats itself) check out a Saturn when they need to replace the "other" car in the driveway. GM's loyalty rating is pretty good, so that means they are doing something right. They need to take steps to make their cars as appealing to import lovers as their trucks are appealing to everyone.

The same holds true with the Cobalt and it's competition, though I imagine that since the new Civic and Mazda3 have gone on sale, not many people are cross shopping.

[1487]

Originally Posted by Ming

Ugh, way to convince us that GM really wants to build and sell smaller, more fuel efficient vehicles... Chris' statement comes off as how I imagine many corporate big wigs at GM, dragging their feet with slumped shoulders, unhappy about not being able to sell the biggest, most profitable vehicles possible.

What they need is a corporate infusion of tech-saavy youth to come in and sweep away these notions and replace them with an obsession for engineering, high tech, and building the most cutting edge, versatile vehicles possible on a small footprint.

Perhaps I'm just nitpicking a tiny part of what he said (after all he did also say "We're very excited about how sales of our cars have increased"), but the comment about SUVs was really not neccessary in the context of his interview, and I think it shows us a sort of backward-thinking side of GM that many of us (well, at least I) suspect exists -- that GM would like to be an SUV and Truck company first and foremost if only the market would allow it.

That kind of company mindset is not going to convince people to buy its smaller cars. The public will go instead to a company where smaller cars are respected and engineered with enthusiasm and zeal, and are backed with as much marketing and advertising dollars as any truck or SUV.

while this is good news for this factory its not good news for GM as a whole. Its hard to be excited when your sales are down big time and Toyota is nipping at your heels. I'm pretty sure GM would've preferred to maintain truck sales and grow car sales. Instead car sales are up by a decent clip and truck sales have fallen off a cliff. I dont see how you can feel "good" about that since every lost truck sale hurts GM's revenue and market share picture.

You were definitely reading too much into the statement. Now we can read 100 more comments about how GM doesnt care about cars and about how the Cobalt is crap because it doesnt get 28mpg in the city. A new cobalt is on the way people, I dont know what else can be said about that. The current car isnt even that bad.