GM, Chrysler Plants Reduce Overtime

June 7, 2002 Bloomberg News is reporting that GM and Chrysler plan overtime next week at 19 North American assembly plants, down from 25 this week, after May's U.S. sales rate was the slowest in three years.

General Motors, the world's largest automaker, said it set extra hours at eight of 29 factories in the region to build more cars, midsize sport-utility vehicles and vans. Chrysler, the third-biggest U.S. automaker, plans overtime at 11 of 17 assembly plants. Ford Motor Co. doesn't announce overtime plans in advance.

U.S. auto sales in May fell 5.9 percent from the year-earlier month as Ford and General Motors each had declines of 12 percent. Chrysler sales rose 4.4 percent as it continued minivan incentives as high as $4,500. The seasonally adjusted annual rate of sales fell to 15.67 million cars and trucks, the lowest since May 1998.

General Motors this week increased rebates by as much as $750 on some pickups, midsize sport-utilities and midsize cars to help boost sales. Ford and Chrysler didn't change their increases after the Detroit-based rival's move.

General Motors will run overtime next week at factories in Michigan, Kentucky, Missouri, Georgia and Canada's Ontario province.

Chrysler scheduled extra production hours at plants in Michigan, Illinois, Missouri, Ohio and Ontario.

This week, General Motors has 14 North American plants on overtime while Chrysler has 11. Dearborn, Michigan-based Ford hasn't said how many of its factories are on overtime this week.