GM to cut production at six pickup, SUV plants

Sharon Terlep | Link to Original Article @ The Detroit News

General Motors Corp. will cut production of large trucks and sport utility vehicles to avoid overstocking as demand for vehicles slips, the automaker said today.

The company has canceled planned overtime for the rest of the year at six North American plants, including one in Flint, spokesman Tom Wickham said. The automaker wants to clear dealer lots and avoid a surplus that would force deep discounts on vehicles such as the Suburban SUV and new full-size pickups, he said.

Volatile fuel prices and a crashing housing market have driven down demand for the large vehicle across the industry.

"We're in a position now where we need to manage the inventory as tightly as possible," Wickham said.

Besides the Flint plant, the other factories affected are in Arlington, Texas; Janesville, Wis.; Fort Wayne, Ind.; Oshawa, Ontario, in Canada; and Silao, Mexico.

GM already announced a 17 percent production cut at the Pontiac plant that builds versions of the GMC Sierra and Chevrolet Silverado pickups. Earlier plans also call for shutting the Hamtramck plant, which makes Buick and Cadillac sedans, for a week each in October, November and December.

The automaker said in June that it would increase North American output in the third quarter by 2 percent. Any change to those plans won't be announced until Sept. 4, when the company announces August sales, Wickham said.

Now Chrysler, watch closely. This is what you do when inventory levels get a little to high.