General Motors Co. intends to idle its truck plants in the U.S. for two weeks in July while it pares inventory of pickups and prepares the facilities for output of 2012 model year vehicle units. The company's Flint Assembly in Michigan will be shut from July 4 to July 11, GM spokesperson Tom Wickham said.
The Fort Wayne Assembly in Roanoke, Ind., will also stop production on the same weeks, according to Orval Plumlee, president of UAW Local 2209, which represents the hourly-based workers among the more than 3,300 employees of the factory. The two factories are where GMC Sierra and Chevrolet Silverado pickups are manufactured.
The company's truck inventory was 288,000 units at the end of May, which is greater than the 275,000 on April 30. This included 258,000 large trucks, or 110 days supply, GM's vice president of U.S. sales, Don Johnson, stated on a conference call last June 1.
The industry standard is around 60 days supply. On the other hand, the president of the company's North American operations, Mark Reuss, disclosed last June 3 in a conference call that the truck inventory was acceptable in the short term and will not trigger a surge in discounts just to clear the inventory.
He added that the company will adjust inventory on a production basis. In a June 1 statement, the company has disclosed that its deliveries in May dropped 1.2 percent to 221,192 units.
Although Johnson has stated that the company is not anticipating "tremendous growth" in the truck segment in the U.S., sales could probably rebound in the second half due to the building up of demand as well as seasonal factors.