GM to boost output due to clunkers incentives

ByABC News
August 18, 2009, 11:33 AM

DETROIT -- Higher sales from the government's Cash for Clunkers program have prompted General Motors to boost production at several of its factories, according to company and union officials.

The increases include an extra day of work at the Lordstown, Ohio, assembly plant and increased hours at a factory in Orion Township, Michigan, said the union officials, who asked not to be identified because the announcement, expected Tuesday afternoon, had not been made.

The Lordstown plant, which makes the Chevrolet Cobalt and Pontiac G5 small cars, is now runniThe Malibu and Cobalt have been popular with people trading in older less-efficient models under the clunkers program, which offers up to $4,500 to people to scrap vehicles with gas mileage of 18 mpg or less.

ng at one shift for 10 hours a day from Monday through Thursday, but the company will add the next two Fridays to the schedule, one union official said. Plant spokesman Tom Mock confirmed the increase.

It was unclear what would be added at the Orion plant, which makes the Chevrolet Malibu and Pontiac G6 midsize sedans.

At the end of July, GM had 70 days worth of Cobalts on dealer lots, while it had 55 days worth of Malibus, according to Ward's AutoInfoBank. Dealers have reported spot shortages of both vehicles.

Ford Motor, Honda Motor, Toyota Motor, Hyundai Motor and Chrysler Group all have announced production increases due to the clunkers program.