Originally posted by: yellowfiero
General Motors Corp. said it plans to ramp up production at its four full-size pickup plants, including factories in Pontiac and Flint, in anticipation of a surge in late spring and summer sales.
The automaker, which is in dire need of a jump-start after a $1.1 billion first-quarter loss, said it's willing to max out overtime and run the factories on Saturdays to build as many of its stalwart Chevrolet Silverado and GMC Sierra pickups as possible.
"We're continuing to see strength, especially in pockets of the full-size pickup market, so we're bringing in overtime where we see underlying demand for our products," said Paul Ballew, GM executive director of global market and industry analysis.
But ramping up truck production carries risks. GM dealers are already overstocked with big pickups and high gas prices are turning many consumers toward more fuel efficient vehicles. If the pickups languish on dealer lots, GM could be forced to offer big, profit-eating discounts to push sales.
"It just doesn't seem to make sense to me," said Scott Montgomery, sales manager at Les Stanford Chevrolet in Dearborn.
http://www.detnews.com/2005/autosinsider/0505/12/A01-179537.htm