GM, Chrysler On Way To Raising Production and Workers
American automakers are finally seeing signs of revival, with General Motors (NYSE: GM) planning to reopen some factories in an effort to meet rising demand. GM closed 14 factories over the past couple of years. Meanwhile, Chrysler is poised to hire engineers and product development workers.
Chrysler’s decision is based on the company lacking sufficient manpower to revamp its US product line. The head of Chrysler, Sergio Marchionne, said that the company may start with hiring temporary employees. GM and Chrysler’s aggressive plans at a time when they are still receiving government aid signal increased confidence in the outlook of the US auto market.
GM Vice Chairman Bob Lutz said that the company has lost market share over the years because it was too afraid to rise up to the demand for its hot models. Its current hot favorites are the Equinox and the Terrain, both of which are crossover SUVs equipped with four-cylinder engines that can get up to 32 mpg on the highway. At the end of December, GM had a 13-day supply of the Equinox and 18 days’ worth of Terrains. GM's North American president Mark Reuss told reporters at the Detroit auto show that the company will start hiring again if he is successful in restoring faith in the GM brands. The company has laid off about 7,500 workers.
