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GM Increases Output as Sales Rise

8/19/2009 7:33:26 AM  |  By J K Galvez

GM Takes Advantage of Cash for Clunkers


Summary: US automaker GM on Wednesday said that it will take advantage of the government's cash for clunkers program, saying that it will start production of more vehicles to cope up with the increased demand for new cars.

US automaker General Motor Co. on Wednesday expressed optimism as sales in its vehicles rise for the third straight month, saying that the company will increase production output up to the end of the year as demand for new car hike due to the cash for clunkers program of the Obama-administration.

After more than a year of slump, GM said that more and more people are going back to their showrooms to shop for cars and trucks. Due to the increase in demand, the automaker said that another 60,000 vehicles are scheduled for production in the third and final quarter of the year.

GM also announced that it will rehire some 1,350 laid-off workers to help in the production of the new cars. Executives said that more than 535,000 cars and trucks are already on the production line in time for July to September season.

The increase in production will add some 35 percent to the embattled second quarter figure. Meanwhile, the vehicles that would be produced in the last quarter of the year are expected to add some 20 percent to the total sales of the company.

Aside from GM, Ford Motor Co. has also announced that it will increase production of its SUVs and mini-truck line as manufacturers expressed high hopes in the consumers’ spending capacity.

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