GM Suspends Production at Its Full-Size Vehicle Factory to Preserve Inventory Levels

GM has set a two-week work stoppage at its truck assembly plant in Fort Wayne, Indiana in an effort to maintain ideal dealership inventory levels.

A GM representative stated that production has increased over the previous month, but demand has remained relatively stable, resulting in an increase in inventories.

Chevrolet Silverado 1500 and GMC Sierra 1500 are manufactured in the Fort Wayne factory. GM’s full-size truck manufacturing facilities in Michigan, Canada, and Mexico will continue to operate throughout the two-week strike in Indiana.

General Motors is preparing for a two-week outage at its truck manufacturing site in Fort Wayne, Indiana. The Fort Wayne facility that produces approximately 1,300 Chevrolet Silverado 1500 and GMC Sierra 1500 vehicles per day will be closed “to maintain optimal inventory levels with our dealerships,” according to a statement released by a GM representative.

The closure is planned to begin on Monday, March 27, purportedly in conformity with both the national and local UAW collective bargaining agreements.

GM stated that production has increased over the previous month, but demand has remained relatively stable, resulting in a rise in inventory. According to a report by Autoweek, the stoppage is consistent with statements made by GM CFO Paul Jacobson, who stated that the corporation desires 50 to 60 days’ worth of inventory through 2023.

GM’s other full-size truck assembly factories in Michigan, Canada, and Mexico will continue to operate throughout the two-week strike in Indiana. According to a GM spokeswoman, the Fort Wayne facility continuously examines and adjusts production plans to maintain ideal inventory levels at dealerships.

The planned shutdown occurs during an intriguing period for pickup production and automobile manufacture in general. Contrast this with the production difficulties automakers encountered in 2021, when supply-chain challenges and a microprocessor shortage prompted GM, Ford, and many other automakers to drastically decrease output plans, shifting the supply and demand curve in the opposite direction. In February, Ford halted manufacture of the electrified F-150 Lightning, citing a possible battery issue. Ford stated, “During a regular Lightning pre-delivery quality assessment, one car revealed a battery issue.”