Sooner Than Later - Bowling Green needs it
12-12-2018, 09:11 AM
#1
Sooner Than Later - Bowling Green needs it
In the Detroit Free Press:
Bowling Green Kentucky Assembly Plant, with 870 employees, is running at 27 percent of its capacity with one production shift, according to LMC data. It builds the various incarnations of the Chevrolet Corvette as well as the engines for Corvette.
Because it is a specialty plant that GM retooled about a year ago, it's at less risk of being closed than some of the others, said Schuster.
"If they were to potentially look at Cadillac getting a premium sports car, that's a possibility for Bowling Green," said Schuster. "But that's still low sales volume, so it won't improve it substantially from a utilization standpoint."
Full Article At: https://bit.ly/2SGUlhZ
27 percent? How much is that costing GM...Need the C8 to get going for the sake of the plant.
Bowling Green Kentucky Assembly Plant, with 870 employees, is running at 27 percent of its capacity with one production shift, according to LMC data. It builds the various incarnations of the Chevrolet Corvette as well as the engines for Corvette.
Because it is a specialty plant that GM retooled about a year ago, it's at less risk of being closed than some of the others, said Schuster.
"If they were to potentially look at Cadillac getting a premium sports car, that's a possibility for Bowling Green," said Schuster. "But that's still low sales volume, so it won't improve it substantially from a utilization standpoint."
Full Article At: https://bit.ly/2SGUlhZ
27 percent? How much is that costing GM...Need the C8 to get going for the sake of the plant.
12-12-2018, 01:15 PM
#4
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Reporters either need a story or need to make a story. This is a case of the later. Their 27% figure is based on running the plant 24 hours a day. GM never expects the BGA to operate like that.
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ArmchairArchitect (12-12-2018)
12-12-2018, 01:16 PM
#5
Le Mans Master
12-12-2018, 04:48 PM
#8
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12-12-2018, 04:55 PM
#9
Burning Brakes
Bowling Green is one of the greatest assembly facilities in the industry and it is 100% safe for the next decade.
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elegant (12-12-2018)
12-12-2018, 11:52 PM
#10
Le Mans Master
Has any Corvette plant run at 80% capacity? And what is the definition of 100% capacity for the BG plant? BTW, still building the C7 while waiting for the C8 launch, why wouldn’t u expect it to be below capacity. They’re probably building cars to exhaust any parts that were still in the pipeline. And what dealers are ordering more C7s for stock?
12-13-2018, 12:43 AM
#11
Advanced
12-13-2018, 01:23 AM
#12
Le Mans Master
Nothing is safe at GM anymore. Opel, Saturn, Pontiac, Oldsmobile, Hummer, Impala, Cruze, Sonic. ATS, SS, LaCrosse, CT6, XTS, Volt, India market, Africa market...all gone.
12-13-2018, 03:28 PM
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The 27% number is based on 24 hour production rates, which the BGA has never been so designated.
As a company, GM is restructuring to meet market demands. Consider the following data...
2012 US Car Market Demand - approximately 48%
2012 US Truck and Crossover Market Demand - approximately 52%
2018 US Car Market Demand approximately 31%
2018 US Truck and Crossover Market Demand - approximately 69%
This has been a steady trend over the last six years and GM is making necessary adjustments.
As a company, GM is restructuring to meet market demands. Consider the following data...
2012 US Car Market Demand - approximately 48%
2012 US Truck and Crossover Market Demand - approximately 52%
2018 US Car Market Demand approximately 31%
2018 US Truck and Crossover Market Demand - approximately 69%
This has been a steady trend over the last six years and GM is making necessary adjustments.
Last edited by jagamajajaran; 12-13-2018 at 03:29 PM.
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Foosh (12-13-2018)
12-13-2018, 06:23 PM
#15
Operating BGA at a higher capacity now would reduce profitability because it would create an oversupply and potentially a net loss per unit. In other words, the additional labor and production costs would not produce a return on the investment since 27% is more than satisfying current C7 demand.
Even during the dark days of the 08-10 great recession and GM reorganization, Corvette was one of the only GM products still generating a profit even though it was not being produced in large numbers. That's what kept the car alive.
Last edited by Foosh; 12-13-2018 at 06:31 PM.
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12-13-2018, 06:46 PM
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Don't panic, The Bowling Green plant isn't going anywhere, take that to the bank
12-13-2018, 08:17 PM
#17
12-14-2018, 08:30 AM
#18
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12-14-2018, 08:39 AM
#19
Drifting
Once again percentage of THEORETICAL capacity is not a measure of profitability. That is an artificial number created by industry consultants. Profit margin per unit is the only good measure of profitability. By all accounts BGA is still profitable, but Lordstown was not generating adequate margins on their products, thus they were on the chopping block.
Operating BGA at a higher capacity now would reduce profitability because it would create an oversupply and potentially a net loss per unit. In other words, the additional labor and production costs would not produce a return on the investment since 27% is more than satisfying current C7 demand.
Even during the dark days of the 08-10 great recession and GM reorganization, Corvette was one of the only GM products still generating a profit even though it was not being produced in large numbers. That's what kept the car alive.
Operating BGA at a higher capacity now would reduce profitability because it would create an oversupply and potentially a net loss per unit. In other words, the additional labor and production costs would not produce a return on the investment since 27% is more than satisfying current C7 demand.
Even during the dark days of the 08-10 great recession and GM reorganization, Corvette was one of the only GM products still generating a profit even though it was not being produced in large numbers. That's what kept the car alive.
LMC's number is seriously flawed and not based on how GM figures their capacity.
Last edited by dreamr616; 12-14-2018 at 08:39 AM.
12-19-2018, 10:30 AM
#20
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Nonsense like this is not nearly as bad as back in 2013 when numerous posts saw the end of the Corvette. Just a bunch of people talking about something they know nothing about.
