GM to increase production at North American plant, says Mark Reuss

Article by Christian Andrei, on September 20, 2010

Some of General Motors Co.’s models are short in supply and to remedy this problem, the carmaker is now evaluating new investments to boost North American plant capacity, according to Mark Reuss, its North American president.

Reuss told reporters in Spring Hill, Tenn., that the tight inventories in its dealerships have had an adverse impact on sales.

During this event, GM announced its intention to invest $483 million in a new four-cylinder engine line.

Although Reuss didn’t specify how or where GM plans to free up more factory capacity, he said that dealers have pointed to the Chevrolet Equinox and Camaro, Buick Enclave, and the GMC Acadia and Terrain as having low supplies than preferred.

It can be recalled that GM shut down several US assembly plants as part of its bankruptcy reorganization last year. At the Spring Hill complex, there is an active engine factory, and a vehicle assembly plant that GM suspended last year.

Reuss said the plant will be prepared to build a direct-injection Ecotec engine that will be used on vehicles (which have yet to be named). Of the 2,000 laid off workers at the plant, 483 will be recalled.

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