US: Cruze production moves to three shifts
Author: Simon Warburton | 22 February 2010
General Motors is thought to be on the brink of announcing round the clock production of its upcoming Chevrolet Cruze compact as US consumers turn to smaller vehicles.
Local media reports suggest GM's Lordstown, Ohio, plant will operate three shifts following the start of Cruze production due later this year. The model, already on sale in most other markets, was designed by GM-Daewoo.
Introducing a third shift at Lordstown would echo a similar move GM made when fuel prices soared for a time in 2008 but the extra shift was later withdrawn following a sharp fall in demand for more fuel-efficient cars.
Now, the unpredictability of oil prices has led manufacturers to look again at the US small car market, which observers say now accounts for around 12% of vehicle sales.
Last week, GM estimated it would produce 650,000 vehicles in the first quarter, sharply up on the 371,000 units built in the same period of 2009. This is partly in response to increased demand as the economy recovers but also to replenish dealer stocks run down by the US scrappage scheme and the earlier production halts while the automaker was in government supervised Chapter 11 bankruptcy proceedings last year.
The Cruze is expected to achieve segment-best fuel economy - up to 40 mpg highway - thanks to its new family of small-displacement engines, including a flagship Ecotec 1.4-litre I4 turbo unit which is eventually destined to be built in the US.
GM last week said it would spend US$494m and create 550 jobs at three US plants to make Ecotec engines, some of which are destined for the Cruze.
It had said earlier it would import some engines from other GM facilities overseas until US production began.
Sectors: Vehicle manufacturers, Vehicle manufacturing
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