LONDON -- Cash for Clunkers has come to the rescue of Cami Automotive.
The Ingersoll vehicle assembly plant is recalling 350 laid-off workers and reviving its third shift as parent General Motors announced yesterday it's boosting production by 60,000 vehicles and recalling 1,350 U.S. and Canadian workers by year end.
GM Canada spokesperson Stew Low credited a combination of "increased demand for our vehicles based on their own merit'' and "lift due to the U.S. Cash for Clunkers program."
The popular U.S. federal program provides rebates as much as $4,500 US to consumers who trade in older gas-guzzling vehicles for new models.
Low said the third shift at Cami will be restarted Oct. 19 to satisfy strong demand for the Chevrolet Equinox and the new GMC Terrain.
The news was greeted with jubilation by members of Canadian Auto Workers union Local 88, which represents Cami workers. About 500 union members were on layoff before yesterday's announcement.
Last month, Cami workers were told they'd be working four 10-hour shifts a week, with optional Saturday overtime shifts to meet growing demand.
"It's quite a relief, especially since we were anticipating having to work enormous amounts of overtime. The numbers showed they could not fulfil the demand even with overtime," said CAW spokesperson Mike Murphy.
With the recent launch of the Terrain, a crossover utility vehicle, Cami president Bob Parcell said the plant was lucky to have "two very hot vehicles in the marketplace" Meanwhile, increased demand for the Chevrolet Camaro will result in overtime at GM's Oshawa plant into October.
"The addition of the third shift at Cami and the continued overtime at the Camaro flex line is terrific news for our employees, the (Canadian Auto Workers), dealers and suppliers,'' said GM Canada president Arturo Elias.
"We are running our plants to maintain maximum flexibility and keep production tightly aligned with customer demand. The uptick in sales is an encouraging sign and we are able to ramp up quickly to meet customer needs."
Low added the increased production is good news for GM Canada's two parts plants in southern Ontario as well.
GM Canada makes transmissions at a Windsor plant, slated for closing next year, and engines at a St. Catharines plant.
The automaker also produces the Camaro and the Chevrolet Impala in Oshawa and will build a new hybrid car there as well.
In the U.S., the Lordstown, Ohio, assembly plant, where the Chevrolet Cobalt and Pontiac G5 are made, will see additional shifts. The plant in Orion Township, Mich., which makes the Chevrolet Malibu and Pontiac G6 midsize sedans, will also see a production increase.
As of last week, the Toyota Corolla small car was the top new vehicle bought by people trading in clunkers, followed by the Honda Civic and Ford Focus compacts. Toyota's midsize Camry was fourth, while its gas-electric hybrid Prius was fifth.
Interest in Cash for Clunkers may be waning, though, according to the Edmunds.com automotive website, because many customers have made their moves, inventories have dropped and prices have risen.
Inquiries on the website were down 15% last week from this year's peak in late July.
"Now that there is plenty of money in the program and the most eager shoppers have already participated, the sense of urgency is gone,'' Edmunds chief executive Jeremy Anwyl said. "Inventories are getting lean and prices are climbing, giving consumers reasons to sit back."
hank.daniszewski@sunmedia.ca
