General Motors reopen their Spring Hill production plant to meet sales demands

General Motors cracked the production problems they have been facing of late. In an announcement on Monday, GM North America President Mark Reuss said that they will be reopening their discarded Spring Hill plant in Tennessee.

The carmakers had been facing shortfalls in the production because of a sudden blip in sales last quarter; especially Chevrolet Equinox’s demand has increased exponentially.

Moreover, the company has started to finally regain the customer trust since the 2009 bankruptcy. According to experts at GM, every new customer behind a GM wheel is a convert and there is no way the company is compromising on the availability of their top-line
vehicles.

The deserted plant in Spring Hill will be reopened next month in collaboration with United Auto Workers. Reuss shared the idea with UAW’s president Bob King last year in a fundraiser, March of Dimes. During the long conversation between the two presidents,
Reuss successfully persuaded King to restart operations in Tennessee.

“I asked him,” said Reuss, “whether he’d be interested in talking about a super-flexible plant that would handle peak demand for hot-selling vehicles. He loved it.”

The production unit will work as an auxiliary to mainstream plants in the US. In peak season, the plant will produce the in-demand cars at the site to help GM reach the target. With a portfolio of a select-few models, and site that is already workable, GM
will be able to save at least $1 Billion of setting up an entire new plant.

Instead the company has estimated an investment in tune of a humble $ 270 Million with around 2000 new job opening. The company is targeting young employees because of a substantially low salary demand.

The most expensive departments are paint shops and bodywork units in a production line. However, at Spring Hill GM has both in healthy condition and it will require only initial overhauling of some components.

Moreover, GM has another plan reserved for the reopened site. Once it gets to its full production capacity, the plant will be handed over the production of GM’s new mid-size vehicle, it plans to release in 2015.

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Posted by Usman Khalid on Nov 22 2011. Filed under Business, USA. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry