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GM plants facing axe tops again

June 1st, 2007

The two General Motors car plants in Oshawa are the most productive vehicle assembly operations in North America despite facing big job losses and a construction overhaul, an industry report has revealed.

U.S.-based Harbour Consulting said in its annual report yesterday that the Number 2 car plant topped the annual ranking while the adjacent Number 1 operation finished second among more than 70 auto assembly facilities across the continent.

“Once again, the workers at General Motors here have proven that when given the investment, they can produce vehicles better than anyone in the western hemisphere,” said Chris Buckley, president of Local 222 of the Canadian Auto Workers.

The Harbour study of auto productivity, which companies follow closely in the fiercely competitive vehicle industry, showed four of the top six assembly plants are in Ontario. Joining the two GM plants are the Honda complex in Alliston and the CAMI Automotive factory in Ingersoll.

In Oshawa, the study found the Number 2 plant required an average of 15.68 labour hours to assemble the Pontiac Grand Prix and Buick Allure and LaCrosse mid-size models in the past year. Meanwhile, the Number 1 plant required 16.34 hours to assemble the Chevrolet Impala and Monte Carlo mid-size models.

Both plants have been among the most productive assembly operations on the continent in recent years. Last year, the Number 2 plant finished second while the Number 1 operation, which topped the rankings in 2005, was seventh.

They are also among the leaders in North and South America in producing vehicles with the least amount of defects, according to J.D. Power and Associates.

GM, the country’s biggest auto maker, will shut down the Number 1 plant at the end of this year and move Impala production to the neighbouring Number 2 operation. Construction projects have already started for a flexible manufacturing operation and consolidation of the two car operations at the site.

Buckley said it’s “a darn shame” the car operations will lose more than 3,000 jobs after the transformation is complete.

In late 2008, the new operation will start producing unidentified mid-size cars and the Camaro sports car. The Number 2 plant will shut down in 2009.

CAMI, a joint venture between GM and Suzuki, had languished in productivity for years because of low demand but it jumped into fourth place in 2006. Productivity in assembling the Equinox, Torrent and XL7 models improved to an average 17.85 labour hours for each model.

Honda’s Number 1 plant in Alliston, the study showed, required an average of 18.82 hours to make the Civic compact, the country’s most popular car.

Greg Gardner, a Harbour market analyst, said productivity at Canadian assembly plants is generally strong, citing the fact some of them run on three shifts.

Results from other plants here showed DaimlerChrysler workers in Windsor needed an average of 21.95 labour hours to build each Caravan minivan while they posted 20.97 hours for the 300 Series and other full-size models at the Brampton operation.

It took 20.24 hours to make the Corolla compact and 22.37 hours to assemble the Matrix crossover utility vehicle at Toyota’s complex in Cambridge.

Ford’s plant in St. Thomas posted an average rate of 20.52 hours. The company’s Oakville plant finished near the bottom of the productivity standings at 46.08 hours for each Edge and Lincoln MKX crossover vehicle, but Gardner noted the company was going through a slow launch last fall.

Harbour said in its report that Toyota led the six biggest auto makers in manufacturing including assembly, stamping, engine and transmission operations. Honda topped assembly productivity with an average rate of 21.13 hours.

The Harbour report found the gap among major auto makers in productivity continues to narrow. Furthermore, the correlation between quality and productivity is strengthening, the report said.

It also showed parent Ford Motor Co. lost an average of $5,234 (U.S.) on each vehicle before taxes last year in comparison to red ink of $50 in 2002. GM reduced its losses by almost half to $1,436 on each vehicle while DaimlerChrysler’s red ink shot up to $1,072 on every model.

Nissan led the money makers with $1,575 in pre-tax profit per vehicle while Honda generated $1,368 on each model.

Source : Thestar.com

Entry Filed under: Automotive