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GM boosts NA production

Wednesday, August 19, 2009
By Gina Roos

gmplantDetroit, Mich. — General Motors Company says it is increasing production by about 60,000 cars and trucks in the third and fourth quarters at several North American assembly plants in response to increased sales. This will increase production in the third quarter by 35 percent over the second quarter, and 20 percent over the third quarter.

As a result, GM will add shifts, overtime and reinstate forecasted down weeks at select facilities. The auto maker is adding shifts at CAMI, Ontario, Canada where the next-generation Chevy Equinox and all-new GMC Terrain are built and Lordstown, Ohio, which builds the fuel-efficient Chevy Cobalt. The increased production will reinstate 1,350 UAW and CAW employees.

“The uptick is an encouraging sign that vehicle sales are turning around, and we will ramp up quickly to meet that demand,” said Tim Lee, GM group vice president, global manufacturing and labor, in a statement.

In July and August, the Cash for Clunkers program generated substantial demand for a broad range of fuel-efficient vehicles including the Chevy Aveo, Cobalt, HHR, Malibu, Equinox and Colorado.

GM says the GMC Canyon, Chevy Camaro, Cadillac SRX and CTS Wagon, and the Buick LaCrosse are also experiencing increased demand. The auto maker expects increased production to continue at their plants.

The auto maker also recently announced that it will invest $43 million in Brownstown Township, Mich., to manufacture lithium-ion battery packs for the Chevrolet Volt and other extended-range electric vehicles. GM says it is the first lithium-ion battery manufacturing plant in the U.S. operated by a major automaker.

The plant will provide more than 100 advanced technology jobs and will be part of a wholly-owned subsidiary of General Motors called GM Subsystem Manufacturing LLC. Local and state incentives, along with Recovery Act funding announced last week by the U.S. Department of Energy, are helping to make the facility possible, said GM.

The investment includes renovation and lease costs for the 160,000-square-foot landfill-free facility, new machinery and equipment, and special tooling, according to the company. With the exception of specialized battery machinery and equipment, GM is reusing equipment from other GM facilities. Equipment installation at the Brownstown site is under way and production will start in the fourth quarter of 2010 to support the launch of the Chevrolet Volt.

The GM Brownstown Battery Assembly facility will include three primary assembly areas: battery module pre-assembly, final assembly and the battery pack main line.

The Chevrolet Volt will be GM’s first extended-range electric vehicle to receive the new plant’s lithium-ion battery. The Volt’s 16-kWh battery is the heart of GM’s Voltec electric propulsion system and consists of 150 unique parts. GM designed and engineered all but eight parts.

In June, GM claimed the largest advanced battery lab in the United States at its Technical Center campus in Warren, Mich. The new GM Brownstown Battery Assembly plant will work closely with GM’s Global Battery Systems Lab in Warren, which is dedicated to GM’s advanced battery development and testing for electrically driven vehicles.

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