GM SUV plant in Arlington will shut down for 3 weeks

[Ming]

GM plant in Arlington will shut down for 3 weeks
By BOB COX
Star-Telegram staff writer



General Motors will halt production of sport utility vehicles at its Arlington assembly plant for three weeks beginning April 14, idling 2,400 workers as the company works to balance inventories with consumer demand, GM confirmed Friday.

The workers, most represented by the United Auto Workers, will continue to receive most of their pay through labor-contract provisions.

Sales of all five models built in Arlington dropped sharply in March from year-ago levels and new orders from dealers have slowed, said Wendi Sabo, a spokeswoman for the Arlington plant.

Sabo said salaried employees will continue to report for work, and some union-represented team leaders will probably be called in for training during the shutdown.

Sabo said the goal is to reduce the number of unsold vehicles. GM had a 106-day supply of unsold SUVs of all sizes at the end of March, Bloomberg News reported Friday, citing a report by Ward's Automotive Group.

"All large GM SUVs, in fact all large SUVs, did pretty poor in March," said Jessica Caldwell, auto-industry analyst with the Edmunds.com information service.

Additionally, GM leaders have decided to divert the Arlington plant's supply of truck axles to other plants in order to augment production of pickups affected by the ongoing UAW strike against American Axle, Sabo said. The Arlington plant has continued to produce during the strike.

GM pickup inventories are also high, according to Ward's, with a 118-day supply.

Caldwell said GM may have decided to boost pickup production and inventories in anticipation of Ford and Dodge rolling out new models this year.

"Even though they're heavily discounted, they may have a better opportunity of selling pickups than SUVs," Caldwell said. When new, heavily promoted models come to market, she said, it often causes an increase in sales for the whole market segment.

Other than small fuel-efficient models and the new crossovers, all SUV sales have slipped dramatically with recent gasoline price increases.

SOURCE

[Uzzy]

They forgot to mention that both Oshawa and Fort Wayne will go back to running 2 shifts of production, which is why Arlington is being shut down. It's not all doom and gloom. Besides...GM STILL HAS TOO MANY TRUCKS!

[VCDJ]

Good who is crazy to buy 12 mpg suv when price of gas is almost $4. And it will just continue to go up.

[GMC-70]

no suprise considering the stock pile of Escalades and Tahoes at the local dealer. Great trucks, but unfortunatley even great trucks will take a hit in these times of high gas prices and economic uncertainty.

[Ming]

Originally Posted by Uzzy

They forgot to mention that both Oshawa and Fort Wayne will go back to running 2 shifts of production, which is why Arlington is being shut down. It's not all doom and gloom. Besides...GM STILL HAS TOO MANY TRUCKS!

As a Dallas / Ft. Worth based newspaper, I'm guessing they're mainly concerned with Texas' fortunes, not what is happening up in Oshawa.

[GMC-70]

Originally Posted by VCDJ

Good who is crazy to buy 12 mpg suv when price of gas is almost $4. And it will just continue to go up.

People with the extra $$$ will still by these regardless---it's people like me who are sort of on the borderline where saving a few bucks is a neccessity where they will loose the sales. Look what I have now--an HHR. Great small SUV--but would I rather be driving a Tahoe---of course!!!

[VCDJ]

Originally Posted by GMC-70

People with the extra $$$ will still by these regardless---it's people like me who are sort of on the borderline where saving a few bucks is a neccessity where they will loose the sales. Look what I have now--an HHR. Great small SUV--but would I rather be driving a Tahoe---of course!!!

Very True. But it is also true that you can get by just fine with hhr. Why buy Tahoe that get 12mpg and you use it the same way as you use HHR.

[GMC-70]

Originally Posted by VCDJ

Very True. But it is also true that you can get by just fine with hhr. Why buy Tahoe that get 12mpg and you use it the same way as you use HHR.

True--the HHR does have pretty decent cargo capacity, but the Tahoe obviously has more with room to spare. I agree with your comment--but the other thing that is somewhat bothersome is that sometimes you feel like a target when you drive a small car like an HHR where in a big SUV you definitley feel more in control.

The bottom line is people who need these sized vehilces will still buy them as well as the wealthy. It's the segment who wants these sized vehicles, but can no longer justify or really afford them that is taking a hit on sales---and I believe this segment is growing at a rapid pace in these times. The hybrid 900's are a great implementation--but lets just hope the price trickles down to an affordable level.

[Ming]

Originally Posted by GMC-70

People with the extra $$$ will still by these regardless---it's people like me who are sort of on the borderline where saving a few bucks is a neccessity where they will loose the sales. Look what I have now--an HHR. Great small SUV--but would I rather be driving a Tahoe---of course!!!

People with money aren't stupid. That's why they have money.

Look at it this way -- a car is not a water heater, but if I'm a rich guy who actually plans to hold on to his money for more than a couple of years for my upper middle class home, sure I'll buy a big, powerful water heater - but one loaded with energy efficiency options.

It's the cheapskate who goes to Lowe's and buys a big tank with an inefficient single heating element just to get the most for the least --- short term thinking.

Most of the rich people I know got rich being frugal and spending wisely, not making blind purchasing decisions.

It's the "new rich" or "wannabe rich" (and soon likely not to be so rich) who go out and knowingly waste cash on the most wasteful, extravagant vehicle possible. Unless, perhaps we're talking about boats --- but even then I'd bet that the newest fanciest boats tout some kind of energy/fuel efficiency.

Aside from the truly ultra-rich, who are a tiny percentage of GM's buying public, most people want to make informed, smart purchases. If they have no choice but to buy a gas sucking SUV for their "needs", then fine, but otherwise, expect them to actually care!

[Buick61]

What sweet justice this is. First they kill the Caprice, Roadmaster, and Fleetwood to build these things, and now everyone is going back to cars.

[Uzzy]

Originally Posted by Ming

As a Dallas / Ft. Worth based newspaper, I'm guessing they're mainly concerned with Texas' fortunes, not what is happening up in Oshawa.

I'm just sayin' is all.

[Ming]

Originally Posted by Uzzy

I'm just sayin' is all.

I know, it's just "doom and gloom" is what we're conditioned to see here, but sometimes it's just a local thang.

[yukonho]

Originally Posted by VCDJ

Good who is crazy to buy 12 mpg suv when price of gas is almost $4. And it will just continue to go up.

I for one. Show me another vehicle that can literally do it all. Tow a 6000 lb. (+ or-) travel trailer during the summer...and while camping in the summer get 7 people to the beach on the sand dunes...get me to work in the snow most of the winter... and make it possible to cart around 2 families to dinner and other events several times per month and so far average 14.8 mpg with less then 2000 miles on it. Remember I need one vehicle to do all this. Last month we traded in our Silverado Crew Cab for a Tahoe. It is by far the best overall vehicle I have ever had. It can do everything and look good doing it too. $4/gal. gas is a bargin compared to $8/gal. bottled water!

[johnny smallblock]

Originally Posted by Buick61

What sweet justice this is. First they kill the Caprice, Roadmaster, and Fleetwood to build these things, and now everyone is going back to cars.

The Caprice/Roadmaster/Fleetwood is no way to conquer the market for efficient vehicles.

[prowlerjc]

Originally Posted by VCDJ

Good who is crazy to buy 12 mpg suv when price of gas is almost $4. And it will just continue to go up.

I'm no fan of them, but this is America and if people feel they can afford to do this, and that is their will, well yippee for them.