Big Three automakers run heavy OT at factories

DETROIT, May 23 Reuters reported that Detroit's Big Three automakers are running overtime shifts at many of their North American assembly plants, as demand for new cars and trucks remain strong.

General Motors Corp. will run overtime at 10 of its 29 North American assembly plants next week, the company said. Most of that is scheduled at GM's truck factories.

The Chrysler arm of DaimlerChrysler AG will run overtime shifts at 10 of its 16 assembly plants, the company said. Ford Motor Co. ran overtime this week at 8 of its 21 plants, and said no plants would be down next week.

All three have been raising production forecasts this year thanks to stronger than expected demand and depleted inventories of some popular models. They have also boosted sales with several waves of cash rebates, cheap loan deals and other incentives.

Also, sales to rental-car agencies have been emerging from a slump caused mainly by declines in air travel after the Sept. 11 attacks.

GM's current second-quarter production forecast for North America is 1.53 million vehicles, split between 677,000 cars and 853,000 trucks. The estimate is 12 percent higher than GM's production in the same quarter a year ago.

Ford's second-quarter production estimate of 1.18 million vehicles is 4 percent above last year's totals. Chrysler does not disclose its quarterly estimates, but has said it will run overtime at most of its plants this quarter.

Production drives automakers' earnings, since automakers book revenues when vehicles roll out of factories, not when they're sold to consumers.