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GM Plant Changes (Making Room for New Product?)

igotzzoom

SM 2017
SM 2016
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May 30, 2016
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So...Thought I'd share this. I'm not trying to give anyone false hope, but it does make one wonder: http://www.trucktrend.com/news/1606-gm-reportedly-moving-more-truck-production-from-mexico-to-michigan/

Just to armchair quarterback a bit...If truck production is moved entirely from Silao to Michigan, that would leave Silao assembly without a product to build. I think this means one of two things...Either GM is going to shutter Silao assembly altogether (it does however have a transmission and engine plant in the area) or going to introduce a new product to the plant. Could Silao build the Avalanche once again? Thoughts?
 
Or maybe sales our down and they do not need excess capacity?

I Read Truck sales are down a huge number in MAY hence why you see the huge discounts and rebate thingys.

They want to Sell trucks as they are money makers for GM.
 
I think you would have to look at overall GM truck sales to see if sales are down or up......Can GM keep up with current or anticipated demand? Are they working on projects like hybrid or electric vehicles? Also I bet they are looking at things like fleet MPG levels and meeting government demand for more efficiency which could mean coming out with the above vehicles or a smaller truck.
Just my .02 but I don't think building a large gas guzzling vehicle is high on GMs plans........
 
Yeah. It's interesting, it seems like there's an 8-year boom and bust cycle to pickups. '08-'09 was a bust, but truck sales came roaring back. The OEs added excess capacity, ended up building too many, and now they're having to slap big rebates on them to make them move. There will always be a market for trucks, but a certain amount of it is contingent on construction and trades.
 
Yes the economy and gas prices can affect sales, if economy is good the gas guzzling high dollar luxury type vehicles sell well since many people want to drive a plush roomy vehicle with some status attached. When economy is tight people face reality and buy what they can afford and look for gas economy. So in the SUV and pickup market the sales in tough times come from folks who really need the features.
Some vehicle historians say you can see the economy in the amount of chrome on a vehicle over the years. In good times there is lots of chrome in lean times cars are stripped down or monochrome.
 
http://www.usatoday.com/story/money/cars/2016/06/04/chevrolet-rolls-out-big-incentives-silverado/85380848/?yptr=yahoo

"Chevrolet rolls out big incentives on Silverado"

"Chevrolet customers will find new incentives, especially on the Silverado pickup, in the next few weeks as General Motors' best-selling U.S. brand tries to reverse sales after a nearly 19% decline in May."
 
igotzzoom said:
So...Thought I'd share this. I'm not trying to give anyone false hope, but it does make one wonder: http://www.trucktrend.com/news/1606-gm-reportedly-moving-more-truck-production-from-mexico-to-michigan/

Just to armchair quarterback a bit...If truck production is moved entirely from Silao to Michigan, that would leave Silao assembly without a product to build. I think this means one of two things...Either GM is going to shutter Silao assembly altogether (it does however have a transmission and engine plant in the area) or going to introduce a new product to the plant. Could Silao build the Avalanche once again? Thoughts?

The linked story suggests that all production might move ("if"), but another story says that GM is only planning to bring some, but not all, Silverado production to Flint. Silao may continue to produce export models.
[size=10pt]?Pulling this work out of Mexico satisfies our customers that want vehicles built in the United States and allows Silao, which is located on a shipping port, to increase volume of other models that are easily exported around the world,? says a May 20 memo signed by UAW Local 598 shop chairman Eric Welter and UAW Local 598 President Ray Gorney.[/size]

http://www.detroitnews.com/story/business/autos/general-motors/2016/05/26/gm-move-truck-production-flint-mexico/84979274/
 
Yeah, truck sales are down. Everybody wants to drive a sub-compact econobox hybrid. 

Heck, even I still drive my sub-compact Jetta instead of my AV as a commuter.
 
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