DETROIT (AP) _ General Motors Corp. said Wednesday it has cut
scheduled overtime at six plants that make large sport utility
vehicles and pickups, citing fuel prices and competition in the
On Monday, the largest U.S. automaker eliminated previously scheduled overtime at plants in Fort Wayne; Arlington, Texas; Janesville, Wis.; Flint, Mich.; Silao, Mexico; and Oshawa, Ontario, GM spokesman Tom Wickham said. The change will be in effect for the rest of the year.
"Reducing overtime production enables us to reduce pressure for
excessive incentive spending, helping us keep brand and product
residual values as high as we can," Wickham said.
GM's SUV and truck sales were down 9 percent in the first seven
months of the year as housing starts slowed and competitors ramped
up incentives. Earlier this summer, Toyota Motor Corp. was offering
incentives of just more than $5,000 per vehicle on its new
full-size Tundra pickups, according to the auto research site
Edmunds.com. GM responded by raising incentive spending in July.
Wickham said GM isn't revising its production forecast at this
time but could announce changes when monthly sales results are
released Sept. 4. GM plans to produce 1.075 million vehicles in the
third quarter, including 697,500 trucks. That's an increase of 2.2
percent over the third quarter of 2006.
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