Cash for Clunkers Working? GM Rehires 1300+
GM has announced that they are recalling over 1300 workers to build an additional 60,000 cars. The company said this is a direct response to the government’s successful Cash for Clunkers programs. The additional capacity is scheduled to take place during late 3rd and 4th quarters in order to meed increased demand on the company’s more fuel efficient models. In addition to the 1300 worker call back, the extra demand will mean 10,000 extra hours for existing workers.
“The uptick is an encouraging sign that vehicle sales are turning around, and we will ramp up quickly to meet that demand,” said Tim Lee, GM group vice president for global manufacturing and labor, in a statement. Mark LaNeve, GM vice president of U.S. sales also added that he expects more production increases to be announced in coming weeks and that the increased production could continue into the early 2010. While all this sounds like good news, Mr. LaNeve also added that strong sales to rental car companies and other so-called fleet customers last August will make it difficult for GM to post a year-over year gain in sales.
Despite some early criticism, this could be just another sign that the C.A.R.S program has been an unequivocal success. Who ever knew that a government program could actually work?