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Aug 7, 2013

* USA CARMAKERS: GM wish to cut $1 billion from material and logistics costs

* Michigan - GM's goal: Cut $1B from material, logistics cost in N. America by 2016

(Photo by Max Ortiz/The Detroit News: Jon Langley guides a Chevrolet Malibu onto a rail car at TDSI Automotive Distribution Center in New Boston) 
Detroit,MICH,USA -The Detroit News, by Melissa Burden -August 7, 2013: -- The size and scope of General Motors Co.’s logistics $8 billion in operations includes moving parts and materials worldwide to 168 manufacturing plants, as well as customs and duties, and shipping spare parts, cars and trucks to dealerships... The Detroit-based automaker’s goal is to cut $1 billion from material and logistics costs in North America by 2016. Trimming that amount will help boost its North America profit margin by 1 percentage point... The company wants to move suppliers closer to isolated plants such as its Fairfax Assembly Plant in Kansas City, Kan., and its Arlington plant in Texas. It is asking some to use closer plants or to build new factories closer to the plants. It was able to get a supplier of trim pieces to locate closer to Fairfax, which will save $66 million over the course of production for the refreshed 2014 Malibu... Now, automakers are looking to add efficiencies into their next growth cycle for vehicles hitting the market in 2016 and beyond. Michael Robinet, managing director of IHS Automotive Consulting in Northville said, the days of automakers willing to buy a product from 1,000 miles away for the lowest component price are over... “Suppliers are not going to locate next to an assembly plant and put up with the capital cost and risk … unless they have a longer-term commitment from the vehicle manufacturer,” he said...


* Michigan - Chrysler expands engine production, adds 298 new jobs in Trenton

(AP Photo by Paul Sancya: Technical specialist at the Trenton Engine Plant works on an engine. The facility build the Chrysler 3.6-liter Pentastar V-6 engine) 
Auburn Hills,MICH,USA -The Detroit News, by Bryce G. Hoffman -August 6, 2013: -- Chrysler Group LLC will invest $52 million in its engine plants in Trenton and Dundee to increase output of its four-cylinder Tigershark motor — a move that will create 298 new jobs... The automaker is spending $11.5 million to add a new assembly line for the Tigershark at its Trenton North factory, where all the new positions are being created. The company is spending another $40.5 million to convert a line at Dundee to machine cranks, heads and blocks to support Tigershark production at Trenton. The Dundee plant also will continue to assemble Tigershark engines, as well as two other four-cylinder motors... With this new investment, Chrysler will have spent $5.2 billion and created more than 10,800 jobs at its U.S. facilities since emerging from bankruptcy in 2009...

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