GM, Chrysler Step Up Plans For Third-Quarter Production
March 31, 2011
DETROIT -- Reflecting buoyant demand for new cars and light trucks and the robust economy, both General Motors Corp. and Chrysler Corp. substantially boosted their third-quarter production plans for the U.S. and Canada. GM, the No. 1 auto maker, said it is raising its third-quarter production plans in the U.S. and Canada by 10,000 vehicles from plans it set a month ago. It now expects to build 1,136,000 cars and light trucks this quarter, up nearly 1% from the number GM built a year earlier and up from its previous plans to just match the year-earlier third-quarter's output. Of the additional 10,000 vehicles, 6,000 will be cars and 4,000 trucks, GM said. Chrysler, meanwhile, is adding 15,800 cars and light trucks to its third-quarter build plans, compared with the schedules it set a month ago. The No. 3 auto maker said it now plans to build 514,900 vehicles in the U.S. and Canada this quarter, 5.2% more than in the year-earlier quarter. The increase includes 5,000 more cars and 10,800 more trucks. Earlier this month, Ford Motor Co. increased its third-quarter production schedule by 20,000 vehicles. Its new production target of 966,000 vehicles is 11% higher than actual output for the 2010 third quarter. GM's production of cars this quarter will still be down 1.4% from a year earlier, at 641,000, while output of light trucks will be up 4% to 495,000. The No. 1 auto maker has been short of capacity to build pickups, minivans and sport-utility vehicles, while it has excess stocks of many car models. A GM spokesman said the production increases reflect strong vehicle sales in May and June. He said GM plans to meet its new output targets without adding production shifts or increasing overtime. ``We are simply fine-tuning our numbers,'' he said. Chrysler's planned production increases for the third quarter, by percentage the most ambitious of the U.S. Big Three auto makers, reflect its position of holding the tightest inventories. At the end of June, the number of Chrysler cars in dealer hands or on the way to them was enough to last just 45 days at current selling rates, compared with Ford's 69 and GM's 58, according to Ward's Automotive Reports, a trade weekly. The industry considers a stock of 60 to 65 days ideal. Similarly, Chrysler's light-truck inventories stood at a 57-day supply, compared with Ford's 67 and GM's 73. Chrysler's lineup of minivans, sport-utility vehicles and pickup trucks has been one of the strongest in the industry this year.
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