General Motors (GM) is reportedly in talks to outsource the production of its Chevrolet Express and GMC Savana cargo vans on contract manufacturing, as the company is looking to free up space at its plants to meet rising demand for pick-ups, reports industry publication Automotive News. Citing a note circulated to GM's workers at the Wentzville, Missouri plant, the news agency suggests that the automaker is "studying a partnership" with Indiana-based AM General to begin production of the cutaway models. "The truck and van continue strong sales … This potential partnership would free up production capacity and allow the organisation to capitalise on our ability to build midsize trucks to further satisfy customer demand", the report stated. Spokespersons at GM and AM General declined to comment on the news.
Significance: GM manufactures the Chevrolet Colorado and the Express models, and GMC's Canyon and Savana models at the Wentzville plant for more than a decade, according to IHS Automotive data. The site has come under pressure from high demand for the recently launched Chevrolet Colorado and GMC Canyon pick-up truck. Both the models are seeing sales far outstrip current supply, with the report suggesting that vehicles spend an average of 24 days and 37 days, respectively, at dealers. GM added a third production shift and 750 jobs at its Wentzville plant during September 2014 and made additional production adjustments during May this year. GM has previously contracted with AM General to build its Hummer H2 SUV. The model was produced at AM General's Mishawaka plant in Indiana during 2002–09, according to our data. AM General currently manufactures US-based automobile manufacturer Vehicle Production Group's (VPG) MV-1 and Ford's Transit Connect models on a contract basis.
