GM boosts Canadian plant output

Higher sales resulting from the U.S. government's "Cash for Clunkers" trade-in program have prompted General Motors to increase production at its Canadian assembly plants.

GM Canada spokesman Stew Low said a combination of "increased demand for our vehicles based on their own merit" and "lift due to the U.S. Cash for Clunkers program" will result in the recall of 350 workers at the joint-venture CAMI plant the company operates with Japan's Suzuki in Ingersoll, Ont.

Low said the third shift at CAMI will be restarted Oct. 19 to satisfy strong demand for the Chevrolet Equinox and the GMC Terrain.

Meanwhile, the company said overtime for the Camaro at the Oshawa, Ont., flex line will continue at least through the end of October. The plant has been running steady overtime each Saturday since June to keep up with the backlog of customer orders.

"The addition of the third shift at CAMI and the continued overtime at the Camaro flex line is terrific news for our employees, the CAW (Canadian Auto Workers), dealers and suppliers," GM Canada president Arturo Elias said.

"We are running our plants to maintain maximum flexibility and keep production tightly aligned with customer demand. The uptick in sales is an encouraging sign and we are able to ramp up quickly to meet customer needs."

Low added that the increased production is good news for GM Canada's two parts plants in southern Ontario as well.

GM Canada makes transmissions at a plant in Windsor in southwestern Ontario, a factory slated for closure next year, and powertrain components at a plant in the Niagara city of St. Catharines.

The automaker also produces the Camaro and other sedans at its main Oshawa manufacturing complex and will build a new hybrid car there as well.

Many automakers have noticed demand rise since the U.S. government launched its "cash for clunkers" program in July.  That program gives Americans up to $4,500 US if they trade in an older, less fuel-efficient car for a new, more efficient one.

Cash for clunkers has proven to be enormously popular, with many automakers saying it's responsible for recent big sales increases in the U.S. New figures out Tuesday show that 411,624 vehicles have been traded in under the program.

Besides GM, Ford, Honda, Toyota and Chrysler have all announced production increases, citing the program's beneficial fallout.