TRUCKMAKERS: GM & Ford * USA: Shifting plants from cars to trucks
* New York - Low gasoline prices have driven up demand for pickups and SUVs
--- U.S. auto makers, responding to weaker demand for sedans and other passenger cars amid low gasoline prices, are rebalancing production at U.S. factories in favor of building more sport-utility vehicles and trucks. General Motors Co. on Tuesday said it plans to add 650 hourly workers in Tennessee at a plant making the GMC Acadia and the Cadillac XT5, two midsize SUVs. Idled for three years after the auto maker’s 2009 bankruptcy, the Spring Hill, Tenn., factory is playing an increasingly important role in GM’s U.S. operations. The job additions come a day after Ford Motor Co. idled a Mustang factory outside Detroit for a week to prevent inventories stacking up on dealer lots. Mustang sales fell 32% in September, helping drag Ford’s overall U.S. volumes down for the month... The moves come as sales of light trucks, including SUVs and pickups, now represent about 60% of total vehicle sales in the U.S. market. Motivated by continuing low gasoline prices, buyers are opting for heavier vehicles that offer more functionality and typically deliver richer margins for auto makers...
(Photo Reuters, by Rebecca Cook - The frame of a 2015 Ford Mustang vehicle moved down the production line at the Ford Motor Flat Rock Assembly Plant in Michigan last year. The plant will be idled for a week as demand for the car is down) -- NY, USA - The WSJ, by MIKE COLIAS - Oct. 11, 2016
Labels: truckmakers news USA