DETROIT - General Motors will extend production of the Pontiac Grand Am as a fleet vehicle, as it did with the Chevrolet Malibu.
The move offers GM two advantages. It avoids layoffs of UAW members, and it minimizes fleet sales of the Grand Am successor, the 2005 G6.
Fleet sales can erode resale values for customers and reduce the value of leased vehicles that automakers sell in the used-car market.
Pontiac hopes to keep the G6 at about 10 percent fleet sales in its initial year, says Gary Steilen, marketing manager for the Grand Am and G6. The Grand Am has run about 33 percent fleet in recent years, he says.
The Grand Am is assembled at GM's Lansing, Mich., M plant. In 2006, about 2,200 workers at the plant will shift to a plant GM is building in nearby Delta Township, Mich., where different vehicles will be built. In the meantime, rather than pay laid-off workers as required by its UAW contract, GM will keep them working assembling Grand Ams.
Production of the G6 sedan begins at GM's Orion Township, Mich., plant in August.
Avoiding a gap
Steilen says Pontiac will continue to sell the Grand Am GT Coupe as a retail vehicle through 2004. That will prevent a lineup gap until GM begins building the G6 coupe early next year.
Grand Am sedans will be fleet-only this fall. All Grand Ams will be fleet vehicles beginning next year.
"There's no specific end date targeted right now," says GM spokes-man Dan Flores. "It's all going to be driven by the marketplace."
The strategy parallels GM's continuing production of the old-version Malibu, also built in the M plant. That car, rechristened the Classic, also is fleet-only.
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The move offers GM two advantages. It avoids layoffs of UAW members, and it minimizes fleet sales of the Grand Am successor, the 2005 G6.
Fleet sales can erode resale values for customers and reduce the value of leased vehicles that automakers sell in the used-car market.
Pontiac hopes to keep the G6 at about 10 percent fleet sales in its initial year, says Gary Steilen, marketing manager for the Grand Am and G6. The Grand Am has run about 33 percent fleet in recent years, he says.
The Grand Am is assembled at GM's Lansing, Mich., M plant. In 2006, about 2,200 workers at the plant will shift to a plant GM is building in nearby Delta Township, Mich., where different vehicles will be built. In the meantime, rather than pay laid-off workers as required by its UAW contract, GM will keep them working assembling Grand Ams.
Production of the G6 sedan begins at GM's Orion Township, Mich., plant in August.
Avoiding a gap
Steilen says Pontiac will continue to sell the Grand Am GT Coupe as a retail vehicle through 2004. That will prevent a lineup gap until GM begins building the G6 coupe early next year.
Grand Am sedans will be fleet-only this fall. All Grand Ams will be fleet vehicles beginning next year.
"There's no specific end date targeted right now," says GM spokes-man Dan Flores. "It's all going to be driven by the marketplace."
The strategy parallels GM's continuing production of the old-version Malibu, also built in the M plant. That car, rechristened the Classic, also is fleet-only.
Full Article
