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June 19, 2009 10:29 PM

GM To Recall 900 Workers To Mich. Plant

By
CBSNews
General Motors world headquarters is shown in Detroit, in this Tuesday, April 21, 2009 file photo. GM said Wednesday May 27, 2009 that not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost cert

General Motors world headquarters is shown in Detroit, in this Tuesday, April 21, 2009 file photo. GM said Wednesday May 27, 2009 that not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost cert (AP Photo/Paul Sancya)

(AP)  A bright spot has surfaced in a sea of negative auto sales statistics for General Motors Corp.

The company said Friday it will recall 900 workers and restore the second shift at a factory near Lansing, Mich., because of increased sales of its Buick Enclave, Saturn Outlook and GMC Acadia large crossover vehicles.

Spokeswoman Sherrie Childers Arb said the laid-off workers will come back to the plant in Delta Township starting Aug. 24, with the second shift continuing indefinitely.

"It's an uptick in market demand," she said.

The company also says it has canceled plans to shut down the Spring Hill, Tenn., plant for an additional week in August because of increased demand for the Chevrolet Traverse crossover.

All the large crossovers seat eight and are built on car underpinnings so they are lighter and more efficient than sport utility vehicles.

At the end of May, GM had only a 46-day supply of the Enclave, 53 days worth of the Outlook, and a 59-day supply of the Acadia, according to Ward's AutoInfoBank. It had a 104-day supply of the Traverse, the top seller of the four vehicles.

Industry analysts say a 60-day supply is optimal to provide enough of a selection, but not so much that large incentives will be needed to move vehicles.

Enclave sales were down 9 percent for the first five months of the year and Acadia sales were off 33 percent, but the U.S. auto market as a whole was down 37 percent for the same period.

All four crossovers were designed to catch buyers fleeing from sport utility vehicles with better handling and fuel economy than the truck-based SUVs.

The Enclave, for instance, gets up to 17 miles per gallon in the city and 24 on the highway, compared with a gas-powered Chevrolet Suburban SUV, which gets 14 in the city and 20 on the road.

The added shift at the Lansing Delta Township plant is good news for U.S. GM workers, thousands of whom have been laid off for up to 13 weeks this spring and summer because the company temporarily shuttered their factories due to the nationwide auto sales slump.

Overall, GM sales are down 42 percent so far this year.

GM last week announced that it would extend some of the closures further into the summer due to slumping demand for some vehicles.

AP
Add a Comment See all 17 Comments
by debinok1 June 20, 2009 1:15 PM EDT
Thats it, Americans have completely lost their freaking minds. Gas prices are still climbing and people are still buying gas guzzlers. Amazing just amazing, no common sense to be found.
Reply to this comment
by azure13 June 20, 2009 2:16 PM EDT
Well, who wants to pack their family into one of those ugly litte Prius sardine cans?
by sjc_1 June 20, 2009 2:51 PM EDT
These SUVs weigh more than 4700 pounds and get 17 mpg which is more like 16 mpg in the real world. They cost over $30,000 and have third row seats. Since most of these will probably run with 1-2 people in them, they represent twice the fuel consumption of what we should be driving. So much for common sense.
See all 4 Replies
by gravyboat3000 June 20, 2009 12:19 PM EDT
by whitemale08 June 19, 2009 8:10 PM PDT
Of course, GM can start recalling workers since now they've been stripped of their benefits, pension funds wiped out, health-care eliminated.

These workers are ready use their serf-labor to export cars to Europe so Wall Street/City of London can make a profit.

Globalization = Serfdom and Neo-Fuedalism
_____

"Neo-Fuedalism"?

LMAO

Only a right wing nut could look at the world in such a manner.

And whre is your proof that these workers aren't getting any benefits?

Liar.
Reply to this comment
by centralcacoast June 20, 2009 12:03 PM EDT
I was told that at "U.S made" auto plants, when a worker spots a defect, the car continues through the assembly line, and waits to be fixed later. At Toyota (in the U.S.) if a defect is spotted, a worker stops the line and it is fixed immediately. Workers are in fact REWARDED for finding flaws before the car gets to the consumer. Interesting. No?
Reply to this comment
by lfagius June 20, 2009 7:14 PM EDT
"U.S made" auto plants, when a worker spots a defect, they stop the line as well. Check your facts, or please don't post hear-say.
by ENGINEERMKIKE June 21, 2009 3:57 PM EDT
Actually, every GM assembly line has the same system. Production is driven to be built or repaired min place which produces the highest quality vehicle. All manufacturerers in the us, foreign and domestic use a similar system since all are graded by JD Powers and others for cost comparisons.
by robh84 June 20, 2009 9:58 AM EDT
The American automotive industry has no one to blame for its current state but itself. Americans like stability. Somewhere along the line, the auto industry forgot that. Instead of making improvements every year to existing nameplates such as Taurus, Bonneville, Delta 88, and so on. We were forced to choose from new, and unproven models every calendar year such as The Ford 500, The Pontiac G8, Aurora and so on. How many times has Chevrolet renamed the Lumina (oops I mean Monte Carlo) or is that the "New Malibu"?

Meanwhile, Japanese automakers were improving their existing nameplates every year. The Honda Accord has been around 30 plus years now. The Nissan Maxima, 20 plus years. The Toyota Corolla, FOREVER. The point is, they took advantage of the US automakers need for renaming everything, by marketing stability. Would you rather buy a proven name, or one that will only be around one or two model years?

Finally, isn't it ironic how US automakers moved much of it's manufactoring facilities to Mexico, and Canada to avoid "high priced" American labor. And when they did, the Japanese opened facilities here in the US using that same "high priced" labor. Now the US automakers are folding like cheap suits, and the Japanese are enjoying record profits. I guess you get what you pay for.
Reply to this comment
by lfagius June 20, 2009 7:12 PM EDT
You make it sound like the Japanese automakers keep improving the same car. They improve what they sell, but the cars they sell are all new from the ground up every four or five years. You have a point that Detroit let quality slip, but you ignore the quality problems of the Japanese, many stemming from, in their own words, moving too fast from concept to production. These problems includes every Toyota and Lexus model from the late 1990'5 to about 2005 having some risk of engine seizure from oil sludge (look up the words "Toyota Engine Sludge" in Google or Yahoo, and see the number of hits). 2005 through 2008 Toyota Camry and Avalon transmission shifting problems. Honda's with lighting and electrical system problems. Honda CRX's with leaking oils filters and resulting engine fires. Honda Accords spanning five to six models years with scores of brake system complaints. Toyota Tundra pickups with broken camshafts, truck beds shaking violently over the slightest highway defects. Toyota Tundra rust problems on bumpers and lug nuts. Nissan Titan's, Armada's, and Infinity QX56 brake problems. Nissan Maxima's with engine computer problems, Nissan Altima's with air bag problems (and a nice recall that includes 140,000 Nissan Altima cars from the 2007-2008 model years, and also involves 2007-2008 model years of the Infiniti EX35, G35 Sedan, G37 and the Nissan 350Z, Murano and Rogue.)

For the record, all of the Japanese car makers are also losing money. Last quarter, Toyota booked larger losses than General Motors, to the tune of $7 billion. $77 million a day. $5.5 billion last year. see http://www.businessinsider.com/toyota-doubles-loss-forecast-gets-its-rating-cut-2009-5

Honda and Nissan are also losing billions. Check you facts before you post crap.
by robh84 June 23, 2009 1:51 AM EDT
Based on 2006, 2007, and 2008 figures. My facts are straight. My point was OUR US automotive companies cut their own throats. Regardless of problems with any car, US or Japanese. The Japanese marketed stability and not NEW and IMPROVED. Thats why overall, they have lost less money than their US counterparts, even in this uncertain economy.

I'm not against the US automakers. I personally own three Fords. The problem with them, like many other industries, is poor management. Generation X'ers all want the fast dollar. They don't believe in earning it the way our parents did. By delivering American Quality. They believe in making it as cheaply as possible in order to make bigger profits. Screw quality. If it breaks, they want us to buy a "NEW & IMPROVED" model.
by WayAround June 20, 2009 8:53 AM EDT
From Bloomberg (Saturday, June 20)

"Banks in Georgia, North Carolina and Kansas with total assets of $1.5 billion were closed yesterday, bringing this year?s tally of failures in the U.S. to 40."
Reply to this comment
by deadleg2 June 20, 2009 12:18 AM EDT
I can absolutely understand where the UAW workers who spent their lives in Detroit etc, for 40 years on the line BUT better to have a job with lower benefits and pay and the rest of the losses that the workers have indeed suffered through than no job at all these days. It is an unfortunate fact of life that through lower wages and other costs the Japanese auto industry started catching on in 1968 with the Toyota Corona. I know, I drove one. People wanted what the Japanese built--a decent quality car for much less than an equivalent domestic car--mine was $1850.00 out the door very nicely equipped. It was all I could afford. The big three basically ignored the QUALITY small car market and lower price points and the rest is history. If Detroit is going to survive, the reality is they will have to compete with the global marketplace. Tariffs on imports wont work, they'll just do the same to us, we have to build a better car than they do, and be able to be price competitive or we might as well just shut all the doors today and stop the publicly paid for hemorrhaging the carmakers are experiencing once and for all. Compete or close, there are no other options.
Reply to this comment
by tothestars2 June 19, 2009 11:23 PM EDT
well that is good news
Reply to this comment
by whitemale08 June 19, 2009 11:10 PM EDT
Of course, GM can start recalling workers since now they've been stripped of their benefits, pension funds wiped out, health-care eliminated.

These workers are ready use their serf-labor to export cars to Europe so Wall Street/City of London can make a profit.

Globalization = Serfdom and Neo-Fuedalism
Reply to this comment
by lfagius June 20, 2009 6:51 PM EDT
They still have their heath care benefits, their pensions remain intact, and they retained most of their benefits, giving up a few fringe benefits. They're being recalled because sales of GM's 6 passenger/7 passenger crossovers are improving.
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