GM to stop Saturn Ion production for 2 weeks

DETROIT, June 17, 2003; Michael Ellis writing for Reuters reported that General Motors Corp. said on Thursday that it will halt production of its slow-selling Saturn Ion small car for two extra weeks to cut inventories of unsold vehicles.

GM will stop building the Ion at the Spring Hill, Tennessee, plant where the car is made for the weeks of June 23 and July 14, before and after the industry's traditional two-week shutdown in early July, Saturn spokeswoman Sherrie Childers Arb said.

Saturn will begin building the 2004 model Ion when production resumes the week of July 21.

"We want to adjust inventory levels so that for 2004 (model year), we minimize what's on the ground," Childers Arb said.

Despite high consumer incentives, sales of the Ion have been slow since the car, Saturn's replacement for the S Series, went on sale in October of 2002. Saturn previously halted production of the Ion for two weeks in March of this year.

Inventories of unsold Saturn sedans stand at 110 days' supply, Childers Arb said. The Saturn "quad coupe" which has two small rear doors, went into production a few weeks ago and has 43 days' of supply. Automakers typically aim to keep about 60 to 70 days' supply of a vehicle.

Saturn's U.S. sales of Ions and remaining S Series small cars have totaled 49,431 through the first five months this year, down from S Series sales of 53,952 over the same time period last year.

GM will also increase production of its Saturn Vue compact sport utility vehicle by about 10 percent when it starts making the new 2004 model in August.

Vue sales are up 53.5 percent to 33,622 units this year. GM will offer a new 3.5 liter V6 engine on all Vues this fall, replacing the optional 3.0 liter V6 engine.