U.S. Automakers Keep Comeback Heat Going, Pass On Summer Shutdowns

Chrysler said on May 8 that four of its plants will continue producing cars and trucks through July without observing the traditional two-week summer shutdown. Chrysler said it decided to skip the customary summer shutdown so that it can meet growing demand for its vehicles. Earlier Chrysler said that its Jefferson North Assembly Plant — which makes the Jeep Grand Cherokee and the Dodge Durango SUVs — will continue production throughout the summer due to sales demand.

Chrysler said that its plants in Belvidere, IL; Toluca, Mexico; and Toledo Supplier Park also will continue operating throughout the summer, and two other plants — in Sterling Heights and Saltillo, Mexico — will only shut down for one week this summer.

Normally, the Detroit automakers and the UAW agree to halt production for two weeks in July to let the companies to balance their inventories and give workers time to install equipment needed for new models. But this year Chrysler's sales growth has outpaced the industry and the company needs to boost production to keep up. Chrysler's U.S. sales through April this year are up 33.4 percent vs. a 10.3 percent increase for the industry.

Most General Motors Co. assembly plants will keep building vehicles during the automaker's traditional two-week summer shutdown as well. Nine of GM's eleven assembly plants, including four in Michigan, will keep producing from June 28 through July 9, and most of its U.S. stamping and powertrain plants also will remain operational, helping GM produce another 56,000 vehicles. That would generate additional revenue for GM, which books sales when vehicles are delivered to dealers, not when consumers make purchases.

The production boost also would help alleviate a shortage of certain vehicles that has confounded GM this year, including the Buick LaCrosse sedan and the Chevrolet Traverse and GMC Acadia crossovers. GM has added third shifts and overtime at several factories this year, but the automaker has struggled to boost record-low inventory levels amid a rebound in sales.

Ford Motor Company plans to produce nearly 40,000 additional vehicles this summer by idling thirteen plants, including six assembly plants, for just one week instead of the traditional two. The Ford assembly plants taking just one week of summer shutdown in 2012 include Chicago Assembly, Dearborn Truck, Kentucky Truck, Louisville Assembly, Michigan Assembly, and Kansas City Assembly. Other plants taking just one week of shutdown include Dearborn Engine, Chicago Stamping, Cleveland Engine No. 1, Lima Engine, Essex Engine, Sterling, and Rawsonville.

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