http://www.bloomberg.com/apps/news?p...d=aqgweyLi6lYA

In a story at Bloomberg's site on higher unemployment than expected, I found the following quote.

"General Motors Co. called back 1,350 union workers, its biggest one-time increase in jobs since 2006, partly in response to demand from the government’s “cash for clunkers” program. "

Is it just me, or does anyone else question GM's ability to anticipate changes in the market? Last time I checked, the CFC program had ended. In my town, there is a Ford dealer and a Chevy dealer side-by-side. The Ford lot is nearly empty. The Chevy lot is brimming. Now GM is ramping up to build cars for which the demand has already been met.

 

While I'm no Auto guru, I would think that C4C depleted inventory to such an extent that it needs to be built up to a specific level again.

 

You're correct in that car inventories need to be rebuilt again, and GM is going to need more workers to do it.


Nothing wrong with your logic. It's just that you have to look at what vehicles are sitting in lots and not selling, and what vehicles are in short supply that GM needs to call back 1300 workers.

Keep in mind that 1300 workers is but a drop in the bucket next to 30,000 layoffs, so it's not exactly like GM is having a mass rehiring either.

 

Guy, you know when the cut over is from Cobalt to Cruze at Lordstown?