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post #1 of 20 (permalink) Old 02-14-2008, 08:59 AM Thread Starter
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Kappa Plant: Third Shift Eliminated

GM plant to eliminate third shift
delawareonline ¶ The News Journal, Wilmington, Del. ¶ GM plant to eliminate third shift


In a move to cut production costs to match slower sales, General Motors plans to eliminate the third shift at its Boxwood Road assembly plant, the company confirmed Wednesday.


GM sold 16,779 Solstices in 2007, down from 19,710 the year before, and 11,263 Skys in 2007, compared with 8,671 in 2006. The model debuted in March 2006.

He forecasts sales of the Solstice to fall to 15,000 this year, and sales of the Sky to drop to between 8,000 and 8,500.

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post #2 of 20 (permalink) Old 02-14-2008, 09:33 AM
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Certainly expected considering the state of our economy. I'm sure it's not just GM effected, it's probably across the board affecting all car makers. Not just cars however, everything is on a down turn at the moment. Who's going to buy a roadster (or any car/truck) for that matter in these times?, when you are trying to keep your home? In these uncertain times, IMHO, people pull back and try NOT to spend any money on any unnecessary items. We certainly have, and walked away on a some what decent deal on a 08 Redline Sky.. That is reality... For us at least, some stability IS in order, since my family was one of those affected by the housing market evaporation... Prudence dictates a cautious approach on spending our hard earned bucks at the moment on anything, I don't like it, but for us, it is VERY wise decision on our part for the moment. We still are maintaining our lifestyle, although, we are not traveling and going out to dinners as frequently as we use to, for the moment any ways..

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post #3 of 20 (permalink) Old 02-14-2008, 09:53 AM
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This really sucks for the people on the 3rd shift, but on the bright side, if they produce less Skys they will remain a very rare car.

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post #4 of 20 (permalink) Old 02-14-2008, 10:04 AM
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It is nice to have an exclusive car, however I would hate to see the SKYs production die in the coming years.

I am not sure that its exclusive to have a car that is only made for 2 years because of a decline in sales. The Dodge neon srt-4 is a great example.

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post #5 of 20 (permalink) Old 02-14-2008, 10:35 AM
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Sucks all those people are losing there jobs, the neon SRT4 was a limited run production thats why it was only out for 2 years. Then the Caliber took over the neon line and now the caliber has the SRT 4 line out and this will only be a limited run too. Same with the Charger SRT 8 was a limited run hehe. Now the challenger took over the SRT 8 name and will only run for a year before its gone.

I just hope the economy comes back.

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post #6 of 20 (permalink) Old 02-14-2008, 10:55 AM
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Gotcha Runner. Still would hate to see the SKY die

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post #7 of 20 (permalink) Old 02-15-2008, 01:26 AM
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When GM set up the Wilmington Plant it invested only 150 million in equipment, which is a relatively low fixed price cost to make back. The variable content per car is very high. The platform has a relatively high labor content. What all of this means is that with 2 shifts and about 30,000 units from all four brands produced, GM will still be making money on this car, though not what it was making before. Don't forget that in about a year GM will be offering the Soltice Targa, which will add sales for the Kappa line.

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post #8 of 20 (permalink) Old 02-15-2008, 09:33 AM
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To my surprise...the Solstice sold more units than the SKY. (2007)
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post #9 of 20 (permalink) Old 02-15-2008, 09:37 AM
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Quote:
Originally Posted by rs0987654 View Post
When GM set up the Wilmington Plant it invested only 150 million in equipment, which is a relatively low fixed price cost to make back. The variable content per car is very high. The platform has a relatively high labor content. What all of this means is that with 2 shifts and about 30,000 units from all four brands produced, GM will still be making money on this car, though not what it was making before. Don't forget that in about a year GM will be offering the Soltice Targa, which will add sales for the Kappa line.
...we have a Business Major making sense of all this....

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post #10 of 20 (permalink) Old 02-15-2008, 09:48 AM
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Most dealers have Kappa car overflow on their lots now.
Between new and used and economy, they can eliminate the third shift. But as other's have said, those folks being laid off at this time sucks. It must be like being between a wall and a hard place financially.

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post #11 of 20 (permalink) Old 02-15-2008, 09:53 AM
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Originally Posted by marlboromike View Post
To my surprise...the Solstice sold more units than the SKY. (2007)

That has always been GMs plan for the Kappa platform - twice as many Solstices as Skys. So does that mean you just never believed us before?
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post #12 of 20 (permalink) Old 02-15-2008, 10:11 AM
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Originally Posted by marlboromike View Post
To my surprise...the Solstice sold more units than the SKY. (2007)
I believe part of the reason, is simply because SKY's were had to come by, with long wait times, and most Pontiac dealers had Sols in stock. I'm sure a lot of buyers opted for the Sol for that reason, rather then wait months for a SKY.

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post #13 of 20 (permalink) Old 02-15-2008, 10:19 AM
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Originally Posted by OlSkyDriver View Post
I believe part of the reason, is simply because SKY's were had to come by, with long wait times, and most Pontiac dealers had Sols in stock. I'm sure a lot of buyers opted for the Sol for that reason, rather then wait months for a SKY.
It has always been GMs plan to produce, and therefore sell, more Solstices than Skys. That is why planned production numbers for the Sky are less than that for the Solstice.
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post #14 of 20 (permalink) Old 02-15-2008, 02:10 PM Thread Starter
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It has always been GMs plan to produce, and therefore sell, more Solstices than Skys. That is why planned production numbers for the Sky are less than that for the Solstice.
That's tied alot to there being 3 pontiac dealers for each Saturn.

that being said... what the guys are getting to really... is that the Sky is a much better looking car than the solstice, and we'd expect it to have caught up to pontiac by now.

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post #15 of 20 (permalink) Old 02-23-2008, 12:28 PM
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Keep in mind Wilmington was never anticipated to go to a third shift. It was planned as a two shift operation. They had to go three shifts to meet the "unexpected" demand. The ENTIRE FIRST YEAR of Solstice was locked before the first production car was built. They were a year behind before they started.

Dropping from three shifts back to two shifts isn't a sign of a wanning breed or a worsening economy, it's simply a sign that the demand has been fulfilled and the plant can return to producing at the original expectation.

Edit: Too much supply in cars like can be very bad:

1: It's attractive because it's unique. Too many hit the road, and the attractiveness fades, as do sales.
2. Too much supply forces manufacturer to offer incentives to move the product, which only hastens (1) above.
3. Offering incentives cuts profit margins, turning a profitable line into a losing line, stunting the ability to re-tool and continue the line.

GM needs a steady production to just undercut demand, maintaining the unique aura of the line. One of the best sales tactics is "it might not be here tomorrow". We know salesman use that for everything on the lot, but for the Kappas, you want it to be real.

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Last edited by Bogie; 02-23-2008 at 12:43 PM.
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