Market Segment
March 24, 2023
GM Sets Temporary Production Idling at Indiana Plant
Written by Laura Miller
General Motors is temporarily idling production at one of its plants in order to adjust production schedules to fit customers’ needs.
While the automaker’s production has increased over the past month, automotive demand has been remaining consistent, thus leading to an increase in inventories, a GM spokesman told SMU. As a result, GM has decided to idle production for two weeks at its truck assembly plant in Fort Wayne, Ind., beginning on March 27, in an effort to manage inventory levels. The plant puts out 1,300 Chevy Silverado and GMC Sierra trucks each day, according to GM’s website.
“All actions taken are in accordance with provisions of the UAW-GM National Bargaining Agreement and the local agreement,” the spokesman added in an email.
GM has previously said it will proactively manage inventory levels, including plant downtime, the spokesman noted.
On the company’s last earnings call on Jan. 31, CFO Paul Jacobson commented, “We’re committed to actively managing production levels to balance supply with demand and are targeting to end 2023 with 50 to 60 days of total dealer inventory on a portfolio basis. This is down 20 to 30 days from mid-2019 and is reliant on a continued improvement in logistical challenges the industry has faced.”
By Laura Miller, laura@steelmarketupdate.com
