DETROIT -- General Motors is running overtime at several plants despite large supplies of the vehicles built at those plants. But GM denies that it is stockpiling in case of a strike at Delphi Corp., its largest supplier.
In some cases, GM is running overtime in plants producing vehicles for which it has more than a 100-day supply. A 60-day supply is considered healthy.
For example, GM had a 120-day supply of the Cadillac CTS sedan on Nov. 1, and yet has run nine weeks of overtime at the Lansing Grand River plant -- including four Saturdays, from Sept. 12 to Nov. 7, according to the Automotive News Data Center.
Likewise, there is an 80-day supply of the Chevrolet Cobalt, yet GM has run seven Saturdays of overtime at its Lordstown, Ohio, plant.
At the Oklahoma City plant, GM has run overtime since Aug. 6 on the GMC Envoy despite having a 118-day supply.
"Our analysis shows that GM is likely to overbuild in the fourth quarter on selected vehicles where they may have higher content that could be at risk in the first quarter if there is a labor stoppage," says Michael Robinet, vice president for global forecast services at CSM Worldwide, a consulting company in suburban Detroit. "It is prudent for them to do this."
A spokesman for GM denies that the automaker is increasing production for any reason other than to satisfy high demand for some products and to replenish low inventories.
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