GM cuts shift at Spring Hill plant after pandemic hurts demand

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Thread: GM cuts shift at Spring Hill plant after pandemic hurts demand

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    GM cuts shift at Spring Hill plant after pandemic hurts demand

    https://www.detroitnews.com/story/bu...nd/3252779001/


    The COVID-19 pandemic's impact on market demand has led General Motors Co. to lay off the third shift at its Spring Hill, Tennessee, plant.

    The layoff, which comes a week after GM initially just postponed the addition of the shift, affects 680 employees at the plant where the Cadillac XT5, XT6 and GMC Acadia SUVs are built. Transfer opportunities to other plants depend on the provisions in the GM and the UAW labor agreement.

    "Today’s market conditions continue to evolve as we see the impact of COVID-19," GM spokesman David Barnas said in a statement. "We believe the best way to react to this unforeseen change in our market is to reduce output and operate on two shifts effective immediately. This adjustment allows the plant to maintain stable production, protect the value of our brands in any sales environment, and to provide the smallest impact to plant employment going forward.”



    Spring Hill is, so far, the only GM plant to see an impact from the coronavirus causing demand to dwindle. GM is continuing its push to get back up to full production across all of its plants by the end of June after restarting them in mid-May following an eight-week pandemic-induced shutdown.

    The plant had three shifts prior to closing in mid-March as the coronavirus started its aggressive spread across the country. The third shift was scheduled to be back on June 21, Spring Hill United Auto Workers Local 1853 Shop Chairman Mike Herron said, but GM postponed the call back last week, later deciding to cut the shift indefinitely.



    "This is a direct result of the market just didn't rebound as quickly as we thought it would," Herron said. "We actually had plans to bring everybody back and it just didn't materialize because the market didn't materialize."

    First-quarter 2020 sales of the XT5 were down 32% year over year as a result of the coronavirus pandemic, The new XT6, a three-row crossover, had just over 5,074 sales. Sales of the GMC Acadia were down 43%.

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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    We are Short on Everything right now. As far as a Dealer is Concerned, the Plants can run 3 shifts a day.

    Especially , F Series, Explorers and Edges

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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    3 shifts isn't a good way to run a plant.
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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    Weird, the plant may have been overproducing and this is their excuse more than anything.

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    Quote Originally Posted by CaptainDan View Post
    3 shifts isn't a good way to run a plant.
    It was the crux of Ford's increased efficiency, at one time it had six plants running that way
    but ultimately reveals capacity limitations and tighter inventory in a boom ( limiting sales)

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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    Quote Originally Posted by InCogKneeToe View Post
    We are Short on Everything right now. As far as a Dealer is Concerned, the Plants can run 3 shifts a day.

    Especially , F Series, Explorers and Edges
    Quote Originally Posted by CaptainDan View Post
    3 shifts isn't a good way to run a plant.
    Actually is a great way, unless you are opposed to profitability?

    Working Saturday gives you a 20% increase in volume, and working Saturday and Sunday gives you a 40% increase.

    Certainly better than 3 plants running 1 or 2 shifts................



    Quote Originally Posted by BORG View Post
    Weird, the plant may have been overproducing and this is their excuse more than anything.
    I recall not that long ago, the "Armchair CEO's" of the room, (self included) questioned the Blazer being made in Mexico?

    Maybe Buick or GMC is getting an additional CUV on this platform?

    We all knew the XT6 would take volume from the XT5 and with the XT4 below the XT5, it's volume was getting cannibalized from both ends.
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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    After a 2 month Shut Down, at near the same time as Model Change/Build Out. Any product in "Demand" Plant, should be running FULL TILT!

    Does anyone Not Recall GM's Bankruptcy? Remember When Over Capacity was cited as the reason for Bankruptcy? Less Plants with Better Efficiency was the Cure and Cuts were made?

    First-quarter 2020 sales of the XT5 were down 32% year over year as a result of the coronavirus pandemic, The new XT6, a three-row crossover, had just over 5,074 sales. Sales of the GMC Acadia were down 43%.
    This says it all.

    Acadia's Smaller Dimensions was a Swing and a Miss. Then plug another model (Blazer) in the loop that is similar in size and Over Priced for that size also.

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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    Quote Originally Posted by InCogKneeToe View Post
    After a 2 month Shut Down, at near the same time as Model Change/Build Out. Any product in "Demand" Plant, should be running FULL TILT!

    Does anyone Not Recall GM's Bankruptcy? Remember When Over Capacity was cited as the reason for Bankruptcy? Less Plants with Better Efficiency was the Cure and Cuts were made?

    First-quarter 2020 sales of the XT5 were down 32% year over year as a result of the coronavirus pandemic, The new XT6, a three-row crossover, had just over 5,074 sales. Sales of the GMC Acadia were down 43%.
    This says it all.

    Acadia's Smaller Dimensions was a Swing and a Miss. Then plug another model (Blazer) in the loop that is similar in size and Over Priced for that size also.
    Blaming Coivid in Q1 is bull-pucky................
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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    Quote Originally Posted by Ed753 View Post
    Actually is a great way, unless you are opposed to profitability?

    Working Saturday gives you a 20% increase in volume, and working Saturday and Sunday gives you a 40% increase.

    Certainly better than 3 plants running 1 or 2 shifts.................
    A plant needs constant maintenance, cleaning, repairs, and updates. Some of these require a station to be shut down. In an assembly plant, if you shut down one station, you're shutting down the whole plant. With 3 eight hour shifts, you have no downtime. Two shifts (with overtime) is more efficient.
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    Re: GM cuts shift at Spring Hill plant after pandemic hurts demand

    On June 24, General Motors announced it is laying off the third shift at its Spring Hill plant in Tennessee. The layoff, which comes a week after GM delayed the addition of the shift as all its oth...

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