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SMALL BUSINESS
GM to Hike Output on 'Clunkers' Sales
AP
DETROIT (Aug. 18) - Higher sales from the government's Cash for Clunkers program have prompted General Motors Co. to boost production at several of its factories, according to company and union officials.
The increases include an extra day of work at the Lordstown, Ohio, assembly plant and increased hours at a factory in Orion Township, Mich., said the union officials, who asked not to be identified because the announcement, expected Tuesday afternoon, had not been made.
The Lordstown plant, which makes the Chevrolet Cobalt and Pontiac G5 small cars, is now running at one shift for 10 hours per day from Monday through Thursday, but the company will add the next two Fridays to the schedule, one union official said. Plant spokesman Tom Mock confirmed the increase.
It was unclear what would be added at the Orion plant, which makes the Chevrolet Malibu and Pontiac G6 midsize sedans.
The Malibu and Cobalt have been popular with people trading in older less-efficient models under the clunkers program, which offers up to $4,500 to people to scrap vehicles with gas mileage of 18 mpg or less.
At the end of July, GM had 70 days worth of Cobalts on dealer lots, while it had 55 days worth of Malibus, according to Ward's AutoInfoBank. A 60-day supply is ideal to maintain a good selection for buyers but not have too many cars.
But since the clunkers program began in late July, dealers have reported spot shortages of both vehicles.
At Randy Wise Buick-Pontiac-Chevrolet in Milan, Mich., southwest of Detroit, there were 22 Cobalts and 26 Mailbus on the lot before the clunkers rebates started, said Mark Jarrait, general sales manager. But now the dealership is down to two Cobalts and four Malibus, and he has ordered more, Jarrait said.
"All of the sudden they disappeared," he said. "The Cobalt has been extremely hot. The Malibu has been extremely hot."
The Cobalt, GM's highest-mileage car at up to 37 mpg on the highway, once was among the top 10 vehicles on the "cash for clunkers" purchase list. But dealers say shortages have bumped it from the top 10 list.
As of last week, the Toyota Corolla small car was the top new vehicle purchased by people trading in clunkers, followed by the Honda Civic and Ford Focus compacts. Toyota's midsize Camry was fourth, while its gas-electric hybrid Prius was fifth, according to the government.
Ford Motor Co., Honda Motor Co., Toyota Motor Corp., Hyundai Motor Co. and Chrysler Group LLC all have announced production increases due to the clunkers program.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2009-08-18 09:35:29
COMMENTS ( 203 )
Btlbugtyp1
10:42PM Aug 20 2009
My friend let me tell you something i have to pay for all of that too why do you crybabies complain about having to pay for medical care .. you union people make me sick acting like you are entitled to health and retirement benefits .....i dont have any but i still have to pay like you ..... quit bitching and suck it up
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Dentaldmd
11:13AM Aug 19 2009
THIS WHOLE PROGRAM WAS LITTTLE MORE THAN ANOTHER AUTO-INDISTRY SUBSIDY, WHICH ALSO OPENED THE DOOR TO ANOTHER SWATH OF AUTO LOAN DEFAULTS. THIS, YOU SEE, ALSO HANDED PEOPLE WHO COULD NOT AFFORD A NEW CAR, ACCESS TO ONE, AND THE LOANS. ONCE THIS PROGRAM IS OVER -- AND IS ALREADY FIZZLING OUT -- WE'LL BE RIGHT BACK TO SEEING THE 'BIG-3' TRYING TO SELL GROSSLY OVER-PRICED CARS, MADE BY SPOILED/LAZY, STILL OVERPAID UAW WORKERS. GM WILL EVENTUALLY FAIL FOR THE SAME REASONS IT FAILED THIS TIME...
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Pcfruitycox
11:10AM Aug 19 2009
COMMON SENSE TELLS ALL AMERICANS THAT GM WILL GO UNDER BEFORE OBAMA GETS OUT OF OFFICE!!!!!!! GM HAS NO INTENTION TO MAKE CARS IN THIS COUNTRY ANY MORE!!!! TO MUCH COST NOT ENOUGH PROFIT!!!!!!!
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Pcfruitycox
11:05AM Aug 19 2009
CASH FOR CLUNKERS WILL END AND WHAT WILL YOU HAVE FOR A JOB!!!!! JUST ANOTHER WAY TO TAKE PEOPLE DOWN THE MERRY ROAD TO NO JOBS IN THIS COUNTRY!!!!!!!!
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Scotty5720
10:37AM Aug 19 2009
Well the dealer's so far that are involved with this government program were promised their money from the government program 3 days after Washington got the paperwork. None have been paid back yet after almost a month. They credited the buyers (who purchased mostly foriegn built cars) to be repaid in a timely manner. The program makes it mandatory to destroy the engines which will make getting parts for our cars that are still on the road much more difficult. The government needs to remove itself from the car business and start performing on the unemployment statistics and real estate market and 10 other things. The dealers were hungry and had to accept this plan.and their mistrust of Washington gains momentum every day they don't get that check in the mail.
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