General Motors Company
) plans to add a third shift at its sports utility vehicle (SUV)
assembly plant in Arlington, Texas in the first quarter of 2013 in
order to boost production for large vehicles and roll out
redesigned lineups of truck and SUV.
Currently, the Arlington facility produces Cadillac Escalade,
GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban. The company will
upgrade the plant with new tooling and equipment for manufacturing
the revamped lineups, including the 2014 model year, based on the
new K2XX platform.
The new shift will add 800 jobs at the plant to its existing
2,500 hourly and salaried workforce. It will relieve existing plant
workers from working overtime for a long time. The company will
begin adding new workers at the plant from the fourth quarter of
GM along with the other Big Three member automakers,
Ford Motor Co.
) and Chrysler, had started scaling back production and sought
plant closures in order to stay afloat in the midst of a global
However, strong pent-up demand and higher consumer confidence
led by improving macroeconomic conditions in the U.S. led many
automakers to add back shifts and boost output at their plants.
Lower gas prices, improved access to credit and strong used car
prices continue to spur sales.
Last month, GM reported an 11% rise in sales to 245,256 units of
cars and trucks, which is the company's highest monthly total since
the "Cash for Clunkers" program in August 2009. Sales of small cars
went up 16% due to the strong demand for the Sonic subcompact while
pickup sales improved due to increased construction activity during
Currently, GM's other three truck assembly plants in North
America are operating with three shifts. According to GM spokesman
James Cain, all the operations in the region are, in fact,
operating at more than full capacity due to extensive use of
overtime and additional shifts.
GM, a Zacks #3 Rank (Hold) company, reported a $100 million fall
in profits to $1.6 billion in the first quarter of 2012 from $1.7
billion in the same quarter of 2011, before special items, due to
lower profits from its European operations.
On per share basis, adjusted profits were 93 cents during the
quarter, down 2 cents from the first quarter of 2011. However, it
exceeded the Zacks Consensus Estimate of 84 cents. Adjusted
earnings before interest and taxes (EBIT) dipped to $2.2 billion in
the quarter from $2.0 billion in the year-ago quarter.
Revenues in the quarter went up 4% to $37.8 billion on a 3% rise
in unit sales to 2.3 million vehicles globally. It was higher than
the Zacks Consensus Estimate of $36.4 billion. The automaker
occupied a worldwide market share of 11.3% during the quarter,
compared with 11.4% a year ago.
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