GM may contract out van production to boost capacity for pickups
THE MOTOR CITY -- General Motors is in talks to offload a number of its own commercial van generation to deal maker AM General, a transfer that will free up capacity at GM's plant near St. Louis to make more of its popular-selling mid-size pick ups.
In a notice circulated to employees at General Motors's Wentzville, Mo., plant on Monday, plant authorities stated the firm is "examining a venture" with Indiana-based AM Common to start creation of cut-away versions of the Chevrolet Express and GMC Savana cargo vans assembled there.
Cutaway designs, in complete variants which can be sold to upfitters to get a particular use for example an ambulance, take into account approximately one third of the more than 100,000 business vans that will have been constructed in Wentzville by yearend, according to a man familiar with the issue. General Motors Corporation continues to be steadily shifting more of the plant's capability to the Chevy Colorado and GMC Canyon mid-size pickups since creation started there in late summer 2014, while dialing again van output.
"The truck and van carry on robust revenue," the notice states. "This possible venture would free-up manufacturing capability and enable the business to capitalize on our capability to create midsize trucks to help meet customer demand."
A GM spokesman declined to comment. A spokesman for AM Common did not promptly respond to requests for comment.
AM Basic has been enlarging its U.S. contract production company this year. In August it started production at its Mishawaka, Indiana, plant of the Mercedes r-class crossover under a multi-year agreement. That go freed up capability at Mercedes Benz's plant in Vance, Ala., for improved creation of several other versions.
In August, AM General started manufacturing at its Mishawaka, Indiana, plant of the Mercedes r-class crossover under a multi-year agreement.
The robust interest in the Colorado and Canyon has amazed analysts. General Motors is on pace to promote almost 120,000 of the pick-ups this year compared with sector predictions of around 80,000.
The pick-ups happen to be among the sector's quickest-selling vehicles in 2013. The Colorados were promoting in a mean of 2 4 times last month, a GM spokesman stated. The Canyon's change speed was 37 times.
General Motors Corporation continues to be scrambling for the previous year to squeeze more production from the plant. It's been working three shifts as well as on weekends, with employees even consenting to rejigger their rest times to remove a six-minute lull between shifts.
General Motors formerly contracted with AM Basic to create its Hummer H-2 SUV, which was in production from 2002 to 2009.
It's possible for you to reach Mike Colias at [email protected]
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