GM increases production of Impala

March 05, 2008 - 10:57

By Kim Downey

OSHAWA -- General Motors of Canada's Oshawa car plant is increasing production of its Chevrolet Impala, a popular seller in the United States.

U.S. sales for the mid-size car, made only in Oshawa, jumped 7.3 per cent to 311,128 last year.

GM in Oshawa, which normally runs three shifts on weekdays, will run two overtime shifts this Saturday -- the third time this year it has run Saturday production shifts, said GM spokeswoman Patty Faith. The company will build about 42 more cars a day.

The plant now assembles about 1,544 Impalas, Buick Allures and LaCrosses a day. However, the Impala represents more than 70 per cent of the output.

Meanwhile GM's Oshawa truck plant shutdown Monday caused the temporary layoff of 2,400 workers because of the impact of a feeder-plant strike in the U.S.

The Oshawa operation ran out of axle parts last Friday night because of a strike at American Axle and Manufacturing in Michigan. There was no word on whether talks between the parts maker and UAW had resumed. If the strike continues, Ms. Faith said it could cause the shutdown of GM's car plant, which uses parts from American Axle.

The good news in Oshawa was echoed in the industry this week with reports that new vehicle sales and leases industry-wide in Canada set record-setting highs in new car sales and leases in February despite a slowing economy.

Although forecasts predict a decline this year, sales and leases of new autos jumped 14.3 per cent, or almost 14,000, to 110,951 vehicles in February from the same month in February 2007, manufacturers reported Monday.

February's total smashed the previous record of 103,200 in 2003 as every mainstream automaker increased business.

Analysts attributed the industry's sizzling performance in January and February to more price reductions and record incentives in a fiercely competitive marketplace.

-- With files from Torstar Newswire

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