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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (21968)	1/22/2005 11:54:19 AM
From: RealMuLan	Respond to of 116555

GM to idle SSR line in Feb., will cut output Craft Centre's production to drop 43 percent By Barbara Wieland Lansing State Journal Virtually no Chevrolet SSR roadsters will be made at General Motors Corp.'s 500-employee Lansing Craft Centre in February. Continued slow sales of the sporty truck led Lansing's largest private employer to decide to close the factory for a month starting Jan. 31. When it reopens Feb. 28, its rate of production will be slashed almost 43 percent, from 70 SSRs to 40 a day. The new rate of production could mean GM will need fewer workers when the plant reopens. "The question is, after the re-rate, will they need the number of people they have today," GM spokeswoman Kim Carpenter said. "We don't know that yet." The shutdown also could affect 257 employees at American Specialty Cars Inc.'s Lansing plant. Workers there supply 42 sub- assemblies to Lansing Craft Centre. The month of downtime supersedes a previous layoff schedule announced last month. At that time, GM said it would close the plant for five weeks spread throughout January, February and March. Some GM employees will be called in during the shutdown to prepare the plant for a slower production pace, Carpenter said. GM's idled hourly workers will receive 95 percent of their net pay. It's unclear how GM's layoff will affect workers at ASC, said company spokesman Tim Yost. "We're still evaluating the situation," he said. "We may be able to do some training during that time." Despite the lull in production, the SSR isn't doomed, said Brian Fredline, president of United Auto Workers Local 1618. The union represents about 350 hourly workers at the factory. He said that the 2005 model boasts a stronger, 6.0-liter V-8 engine with 390 horsepower. It carries a manufacturer's suggested retail price of $42,555. The 2004 SSR had a 5.3-liter V-8 engine with 300 horsepower. The new model also has a six-speed manual transmission as an option. "Everything we build has got the bigger engine on it, and that has got to impress the marketplace," Fredline said. "I haven't heard much criticism about the SSR, but when I do, it's that it needed more power." Fredline pointed out that the SSR enjoyed its best sales month in December, with 1,110 trucks sold. One of those was bought by Sam Henderson of Austin, Texas. Originally attracted to the SSR by its retro styling, Henderson held off on his purchase until the 2005 model reached dealers. "I waited to get the bigger engine," he said. "I think you're going to see more people interested in it now." Contact Barbara Wieland at 267-1348 or bwieland@lsj.com. lsj.com