GM May Contract Van Production to AM General on Strong Demand for Canyon, Colorado
Plant Straining Under Demand for Midsize Trucks
Even when its other Detroit Three compatriots were publicly casting doubt on General Motors’ strategy to return to the midsize truck market, GM persisted and has brought us the excellent second-generation Chevrolet Colorado and GMC Canyon. It seems customers have responded in a big way by snapping up nearly every truck that dealers can get. The demand for the duo is so strong that GM is reportedly exploring a partnership with Indiana-based contract manufacturer AM General to build the cutaway models of its vans at its facility in Mishawaka, Indiana, according to Automotive News.
The move would reportedly free up as much as 30,000 units of capacity to go toward midsize truck production. The average turn rate for the Colorado is a low 24 days, with 37 days for the Canyon. The industry average is around 60 days. GM and AM General have a long history of partnerships, starting with the Hummer H1 and H2 SUVs. More recently, Mercedes-Benz contracted with AM General to build the R-Class crossover for export to China. AM General also builds the MV-1 wheelchair-accessible vehicle. The report did not give a specific timeline for when the transition would take place. Neither GM nor AM General have released official statements on the matter.
Source: Automotive News