GM, Ford to extend holiday shutdowns at some NA plants

December 23, 2013
Both General Motors and Ford will reportedly extend planned holiday shutdowns at some of their North American factories in order to keep a lid on mounting vehicle inventories. Meanwhile, Chrysler is planning to add shifts to some of its plants.

According to Automotive News, GM will idle its Fairfax plant in Kansas City, Kansas, for a few extra days in January to rein in growing inventories. The Fairfax plant produces the Chevrolet Malibu and Buick LaCrosse. GM had a 71-day supply of the Malibu at the start of December – up from a 60-day supply last month – while inventories of the LaCrosse have swollen to 148 days.

GM will also shutter its “flex” line at its Oshawa, Ontario, plant in January. The flex line is responsible for building the Buick Regal, Cadillac XTS and Chevrolet Camaro.

Supplies of the Regal have grown from 88 days to 99 over the last month, with the Camaro growing from a 135-day supply to 167 during the same period. XTS supplies have actually fallen from a November high of 131-days, but inventories still remain above ideal at 105-days.

Ford will follow GM’s lead with planned shutdowns of its own.

Ford will close its Cuautitlan, Mexico, plant – which makes the Ford Fiesta – until January 13. Although Fiesta sales have increased 30 percent to 66,597 units this year, dealers are swamped with a 124-day supply of the sub-compact.

Ford’s plants in Hermosillo, Mexico, and Dearborn, Michigan, are also in line for some extra downtime. Those plants make the Lincoln MKZ , Ford Fusion and F-series pickup truck.

For the third consecutive year, Chrysler will be adding shifts during the typical holiday shutdown. Chrysler is adding between one and two shifts at plants in Michigan and Ohio to boost production of the Ram pickup, Dodge Durango, Jeep Grand Cherokee and Jeep Wrangler.

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