No Summer Shut-Down for Most GM Plants in US

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.

Years ago, GM's shut-down period originated as a means for the automaker to complete the annual model changeover. Over the past two decades, however, it evolved, allowing the company to support maintenance operations and enabling GM employees to use their vacation weeks without interrupting overall productivity.

This year, GM says nine of the 11 assembly plants will continue to operate during the traditional shut-down period from June 28 to July 9. In addition, most of GM's U.S. stamping and powertrain plants will also work to support assembly operations.

In May, when GM announced its first quarterly profit in almost three years, Chris Liddell, vice chairman and chief financial officer, cited strong domestic demand and growth in emerging markets as key factors in the company's profitability.

"We're pleased with our first quarter performance, in particular achieving profitability," Liddell said. "In North America we are adding production to keep up with strong demand for new products in our four brands. We're also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet. These are all important steps as we lay the foundation for a successful GM."

TAGS: Finance
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