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GM plans to build more Cadillac SRXs

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GM plans to build more Cadillac SRXs

Chrissie Thompson

Automotive News -- June 9, 2010 - 1:34 pm ET

DETROIT -- General Motors Co. is planning to make more Cadillac SRX crossovers, in part to supply reinstated franchises, a Cadillac executive said Tuesday.

"We have some plans to increase production, but probably not till the fourth quarter," said Kurt McNeil, Cadillac's U.S. sales chief, in an interview.

About 500 former wind-down Cadillac franchises are rejoining the fold this summer via reinstatement or arbitration after being prohibited from ordering new vehicles for about a year. GM's need to restock their lots and the expectation of growth in U.S. light-vehicle demand figure in to the automaker's plan to increase production.

"They all want SRXs right away," McNeil said of reinstated dealers. Usually, those dealers can't get as many SRXs as they think they can sell, and some dealers sell out of the crossovers before a new batch arrives.

"On an SRX, there isn't more to get" between monthly allocations, McNeil said.

The redesigned 2010 SRX was launched last summer, and inventories have been below the ideal 60-day supply since September, according to the Automotive News Data Center. The SRX started June with a 57-day supply.

GM's plant in Ramos Arizpe assembles the SRX, two Mexican-market products and the Chevrolet HHR, expected to disappear after the 2011 model year. The factory supplies the SRX mainly to North America and China, and in February GM said it would start exporting the crossover to Europe this summer.

The plans continue post-bankruptcy GM's trend to increase North American production, mainly by adding shifts at six of its 16 operating assembly plants.

Read more: http://www.autonews.com/article/20100609/OEM01/100609859/1260#ixzz0qOHuW72g

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By Mark Kleis

During a recent interview, Cadillac’s U.S. sales chief, Kurt McNeil, announced that Cadillac will be increasing production of its popular SRX crossover in the near future, citing both reduced supply on dealer lots and the future reinstatement of dealerships previously scheduled for wind-down.

“We have some plans to increase production, but probably not ’till the fourth quarter,” said McNeil during in an interview, according to Automotive News. McNeil also went on to explain that part of the increased demand is being driven by the reinstatement of roughly 500 dealers that were previously expected to be eliminated from the brand’s dealer network. As those dealers begin to place orders, says McNeil, he is finding that the SRX is a top priority to fill the empty lots.

GM currently produces the SRX at the Ramos Arizpe plant, which is located in the Mexican state of Coahuila. GM says that in the near future the SRX will also begin to be exported from the Mexican plant to European markets for the first time.



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