General Motors is abandoning its traditional summer-shut down in order to keep up with buyer demand.
Typically, GM plants in the U.S. shut down for two weeks in late June-early July. But, last week the company announced that this year, most of its domestic plants will forego the traditional shut-down to help meet increasing demand from buyers.
The decision is expected to generate up to 56,000 additional vehicles. (more…)
The N.Y. Times reported today that the secretary of transportation and the Senate majority leader both feel confident that the Senate will vote this week to revive the “cash for clunkers” program with an infusion of another $2 billion in funding, as the House did a few days ago.
If you haven’t heard already, the Car Allowance Rebate System (CARS) –popularly known as “cash for clunkers” –is a program designed to boost the U.S. auto industry while helping consumers trade in cars with low mpg ratings. Consumers can scrap their gas guzzlers in exchange for a credit of up to $4,500 toward the purchase of a new, more fuel efficient vehicle.
CARS was rolled out in late July, but in less than a week, the program burned through the $1 billion Congress had appropriated. Now, cash for clunkers is essentially stalled until both the House and Senate can approve more funds.
Some see the overwhelming success of CARS as a welcome sign of underlying demand among U.S. consumers.
Think you have a tough work week ahead? No matter how taxing your calendar appears to you this Monday, I’d wager that you still wouldn’t want to trade places with Bob Socia, the new vice president of global purchasing and supply chain for General Motors.
Sure, GM took a big step forward when it emerged from bankruptcy last Friday, but the company still faces a tangle of thorny problems. For starters, GM’s supply chain is in tatters. In fact, Bill Michels, CEO of ADR North America LLC in Ann Arbor, Michigan, a consulting firm specializing in global supply chain management, says Socia has inherited a supply chain that is “crippled by bankruptcies, unprofitable, unstable and undeveloped.” Without question, Socia has his work cut out for him, and he’ll need plenty of focus and determination to piece things back together.
