GM postpones 2nd shift at Hamtramck Volt plant

[BrentW]

http://www.freep.com/article/2011100...text|FRONTPAGE

General Motors is delaying plans to add a second shift at its Detroit-Hamtramck Chevrolet Volt factory after finding more efficient ways to build the car.

GM had said in May it would add a total of 2,500 workers on two shifts at Detroit-Hamtramck, with the first of those shifts to start this fall. But during a six-week shutdown this summer, GM made its production line and body shop more efficient, allowing the company to make twice as many Volts in the same amount of time, a person familiar with the situation said. That will allow the factory to meet scheduled Volt production by adding only 300 workers by January.

Those 300 jobs will go to laid-off workers and potentially to a few people who transferred out of Detroit-Hamtramck in past years, the person said. GM still plans to add the additional shifts; the second shift will start by summertime, when the factory starts producing the Chevrolet Malibu. The third shift will start once Detroit-Hamtramck adds the redesigned Chevrolet Impala, likely by 2013. GM will announce hiring procedures for those shifts in the future.

Building the same number of Volts in half the time will save GM $10 million, the person said. GM has said it will build 16,000 of the extended-range electric cars this year and 60,000 next year. The automaker is seeking ways to make the vehicle profitably.

“This approach is just a more efficient way to make the same number of vehicles,” GM spokesman Chris Lee said in an e-mail. “It’s good for our business and good for our customers.”

The savings not only comes through paying fewer workers over the next several months, but GM also benefits by not having to pay energy costs to run two shifts, the knowledgeable person said. When GM shortened the plant’s assembly line, the automaker in-sourced subassembly of the Volt’s instrument panel, dashboard, steering wheel and center stack. A supplier had previously performed that work outside the plant, so building it in-house saves transportation costs.

With the new workers, Detroit-Hamtramck’s total workforce will increase to about 1,300 hourly and salaried employees.

In addition, a second shift at the Volt battery assembly plant in Brownstown Township starts Monday. GM added 30 new workers, bringing the factory’s total to 100. It will add a third shift in the middle of 2012 with an additional 30 or so people, the knowledgeable person said.

[MrEnergyCzar]

I think they are making 150 a day, 4 days per week...

[tboult]

Interesting and positive new for the Volt. (Not so much for the employees that did not get hired). Saving 10Million over something like 30K volts (16K this year and 16K before next summer) may only be shaving $320 per Volt, but its still a cost savings and a step toward profitability and eventual lower car costs.

[Slapshot28]

The automaker is seeking ways to make the vehicle profitably.

This helps explain why GM is not "pumping out the Volts" (i.e., ramping up production at break-neck speed). It also suggests that we early Volt adopters got a good deal!

[Brittt1]

I actually think this is negative...hmmmm, I would think you would produce as many as you can if Demand is there....In any case this will feed the trolls so it will be perceived as negative in 'most' circles.

[jeffreykb]

It sounds like GM General Assembly Manufacturing is working toward reducing the MSRP price. 'Looking forward to other stories within GM about making the Volt more affordable.

[Codyozz]

I want to say this is positive as well... but it screams of old GM... which I admit may not be true. It just seems that cost is driving everything, at the moment. I'm not convincing myself of anything though. Maybe the plant was just that inefficient with all those "Lucerne & DTS speed bumps" around the plant.
Bottom line, I & most of the forum posters... want to see sales pass 2000/month and like now!! With every passing month below 1000 the naysayers get their bread crumbs of "I thought so".
have a good weekend y'all!

[bonaire]

Don't forget the exports. Next year, if things go right - they'll ship 15K units out of country as exports. I'm hoping they hit that number hard to help get people off of Petrol in Europe and Canada. That is over 1000/month on that number alone.

I'd be "ok" if they only sold 30-40K next year. It's hard to think that a $39K starting point car could be much higher (people think retail and not post-incentives). I look at a Volt as $28.5K post-credit&rebate in Pennsylvania plus any options, if added. Probably $32K after taxes and destination minus possibly $1K on GM Card earnings. That's not too bad. The salesguy I talked to is trying to push me into choosing a lease - I doubt it.

But they have my interest with the A123 goings-on and I'm eager to see what's up with that.

[Jason M. Hendler]

I actually think this is negative...hmmmm, I would think you would produce as many as you can if Demand is there....In any case this will feed the trolls so it will be perceived as negative in 'most' circles.

All the suppliers were prepped for 16,000 this year and 60,000 next year, so an improvement at the assembly plant doesn't mean that all the suppliers can suddenly increase their production. On the contrary, I am hoping the suppliers are all finding millions of dollars of savings, so that the cost of building the Volt continues to fall.

[mbepic]

All the suppliers were prepped for 16,000 this year and 60,000 next year, so an improvement at the assembly plant doesn't mean that all the suppliers can suddenly increase their production. On the contrary, I am hoping the suppliers are all finding millions of dollars of savings, so that the cost of building the Volt continues to fall.

My guess is that they will have to add the extra shift at the battery plant before they can start producing those extra Volts that might come on line. Batteries are critical to this process..............don't we think?