Supplier Snags Slow GM’s Pickup Production
Despite the best efforts made by General Motors (NYSE:GM) to get its new, redesigned Chevrolet Silverado and GMC Sierra pickup trucks into the hands of clamoring customers, the production of the units has been kinked due to holdups and delays at the supplier which provides the axle units for the vehicles.
Recently, GM’s Fort Wayne, Indiana facility has reduced its production to 1,300 Silverados and Sierras a day, down from 1,500 units originally, putting a potential dent of 1,000-1,200 units lost every week; according to a union official at the plant, an American Axle & Manufacturing plant in Silao, Mexico, hasn’t been able to keep up its pace with the planned production rate.
“We’ve been slowed down for several weeks because we can’t get enough axles,” noted Rich LeTourneau, shop chairman for UAW Local 2209, which represents most of the plant’s 3,800 workers. Fortunately for all, the holdups at the axle plant are due to capacity bottlenecks — while it’s still a problem, it’s a preferable problem to have over, say, quality control issues. However, it does highlight a potential issue in GM’s own product strategy.