General Motors Go Eco-friendly, Create More Savings

After spending about $600 million on over-hauling the 4.3 million square foot plant, General Motors Co. is hoping to derive more savings from the small car factory, by embracing green.

#-Link-Snipped-#The restructured factory will reopen as a more flexible, more greener operation, using about a third of previously used factory floor, the GM officials said. It’ll consist of more efficient workplaces, better in-house suppliers and more foreign made parts.

Two new cars will be produced here this fall: The Chevrolet sonic and the Buick Verano
GM also upgraded it with some eco-friendly outfits, some better lighting system, and a new paint shop that utilizes just half the energy per vehicle as the one replaced. Landfill gas will contribute to 40% of the plant’s total power, thus generating about $1.1 million in savings per year.

"General Motors' sustainability efforts prove reducing the impact on the environment can also drive costs down and is good for business," said Maureen Midgley, the company's executive director for global manufacturing engineering.
Once fully operational, the factory will boast a workforce of 1600 people, including 1400 hourly members. The production will carry on in two shifts, manufacturing about 1,60,000 cars per year, according to Plant Manager Alicia Boler Davis.

There’s plenty of room to expand, and the factory could easily support some extra productions of  Chevrolet Cruze, now built at Lordstown, Ohio, Boler-Davis added. For now three shifts are maintained in Lordstown for manufacturing the in-demand Cruze.
The Company is open to any new ideas in order to increase their savings in a hope that production costs can be decreased on cars that typically generate very low profit. The Company signed a deal with the United Auto Workers union to employ 40% of Orion workers to make a lower pay, $14 to $16 per hour, approximately half of the traditional pay given.

GM is also cashing in on the hope that users will try to accessorize their new small cars with the latest equipments, the more expensive trim levels and features, and all the more since the hike in gas prices convinced some users to downsize.
"We're seeing customers who used to own bigger vehicles move into smaller, more fuel-efficient vehicles," said Margaret Brooks, GM's marketing director for small cars. "But one of the things we're seeing is they don't want to give up anything. Obviously, we're here to make money at every business we participate in "
Brooks declined to state whether GM had reduced enough costs to cash in on the sub-compact Sonic.

Source: The Detroit News