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GM Announces First Production Hike, Worker Rehire Since Bankruptcy

For the first time since the company filed for bankruptcy, General Motors is hiring back workers and adding overtime to meet higher-than-expected demand for cars and trucks, The Post's Peter Whoriskey reports.

The company will reinstate 1,350 workers and add overtime for about another 10,000, the result of a broad surge in sales at least partly due to the government’s "Cash for Clunkers" incentive program.

The rehires represent only a small portion of the tens of thousands of GM workers who have been laid off in recent years, but the news is a marked turnaround from just months ago when the company was undergoing bankruptcy proceedings.

"We’re running much hotter," Mark LaNeve, GM’s vice president of U.S. sales, said in a conference call moments ago.

Most of the jobs will be added at the company’s Lordstown, Ohio, plant, where the Chevy Cobalt, a small car that looks like this, is built, while others will be added in Ontario.

The news from GM follows Ford’s announcement last week that it too is boosting North American production to meet the increased demand spurred by the $3 billion Cash for Clunkers program.

Ford said its third quarter output would rise by 10,000 vehicles to 495,000, primarily due to increased demand for Escape small utility vehicles and Focus small cars, the two most popular Ford vehicles under the federal incentive program.

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By Frank Ahrens  |  August 18, 2009; 4:06 PM ET
Categories:  The Ticker  | Tags: Ford, GM, General Motors  
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I just bought a Honda's the third Honda in our family and our daughter and her husband recently bought a Honda, too.
They are stylish and reliable vehicles, as are Toyotas and other imports.

One would be utterly insane to buy a clunker from Government Motors. If you don't believe GM is making clunkers, ask any auto mechanic or automotive engineer what they think of these new product lines.

Posted by: Jerzy | August 18, 2009 4:50 PM | Report abuse

GM has quite a few good models. Yes, there have been more than a few lemons in GM's history but by and large it has been reputation that has hurt GM the most. It's difficult to overcome a bad rap.

Posted by: RDSpeer | August 18, 2009 4:57 PM | Report abuse

How about paying back the U.S. Taxpayer?

Posted by: yokosuka1985 | August 18, 2009 5:01 PM | Report abuse

Jerzy is wrong but apparently is so enamored by continuing to support the government and culture of the uncontrite Japanese that he refuses to keep an open mind. After many years of BMWs I bought a Malibu LTZ 16 months ago and it has performed wonderfully. My best friend bought an Impala and says it is his favorite vehicle of the three he currently owns. Jerzy, keep living in the past with your bitter right wing delusions.

Posted by: socaloralpleazer | August 18, 2009 5:06 PM | Report abuse

Yokosuka1985, Pay the taxpayer back what? Most people's taxes went down, so it's doubtful you paid anything. And if car companies start putting people back to work and they start having a paycheck they'll buy things. That will help other businesses stay afloat and keep them from laying off workers, thereby allowing them to buy things. See how that works? The taxpayers in the future will also benefit if the economy rebounds because then their taxes won't have to be raised to pay for the measures we had to take to save us all from a depression. This is a good thing. Be happy.

Posted by: bgormley1 | August 18, 2009 5:14 PM | Report abuse

My stepdaughter is coming up for her birthday.

I have told her I will help her get her first car.

The Chevy Cobalt two-door, *without the spoiler*, is a good solid car that I am willing to help her buy.

The key is it will, on a dark, cold January night (and we have lots of cold nights in Canada), start on the first turn of the key, when she has been at university all day and her car is covered with snow.

Also, the quality per Consumer Reports, has improved.

Thank you

PS: At present I drive an Ohio-built Mazda so our family is willing to expand our possible choices.

Posted by: Beprudent | August 18, 2009 5:37 PM | Report abuse

Great sign. Great start. I always have bought American, not GM, but American. Until banks change the way they do business, I will not be purchasing a new vehicle until the wheels fall off of this one.

Posted by: concernedaboutdc | August 18, 2009 5:40 PM | Report abuse

Isn't it amazing what BILLIONS AND BILLIONS AND BILLIONS AND BILLIONS AND BILLIONS of taxpayer dollars can do?

Isn't "FREE" ENTERPRISE wonderful!

Posted by: LoonyLeft | August 18, 2009 6:24 PM | Report abuse

I think a lot of companies laid off too many people, now, they find an overworked staff will delay progress and growth. While the profits may be greater, competition will find the weak spot.

Posted by: dcmotor | August 18, 2009 6:38 PM | Report abuse

Workers might want to consider finding a better Company that has public support.

Posted by: dottydo | August 18, 2009 6:39 PM | Report abuse

dottydo what are you talking about? If GM did not have public support (i.e. people buying GM cars) do you think they would be bringing workers back? Do you think they would be paying overtime? GM is not the best company in the world but could you please once take off your blinders and see the facts?

Posted by: pjjacobs | August 18, 2009 6:45 PM | Report abuse

This is good news for the North American economy. It certainly looks like the doomsayers of the recent past were, as usual, completely wrong about their predictions of what would happen to GM if they went the chapter 11 route. They do make, overall, a very good vehicle.
I'm driving a 23 year old GMC mini-van with 320,000 KM (approx. 199,000 miles)on a V6 that purrs as well as it did when new. I've had to replace most peripherals, like the starter, waterpump, rad, brakes, etc., but I'm pretty sure nobody makes anything better for the money.

Posted by: jimmykraktov | August 18, 2009 6:58 PM | Report abuse

This is great...the new Camaro is selling well. The V6 will be a great at AutoCrossing the V8 Drag Racing.

The Fans will come out to see the competition between Dodge RT, Camaro and Mustang. Much like the old TransAm series which I hope revives.

Need to make the Impala and RWD car not another FWD with a name slapped on it.

Ford did great with the Mustang and bringing back the Taurus.

There is nothing like having a job and know you are being productive.

Fei Hu

Posted by: Fei_Hu | August 18, 2009 7:21 PM | Report abuse

My 1993 GMC mini-van runs like a dream.
Our mechanic told me it still takes such a small amount for maintenance per mile that we would be crazy to trade it in.
We bought it to haul my harps, one of which is a concert grand musical instrument, an heirloom.
The mechanic's GMC mini-van, which he uses in his business, has twice my mileage and close to 250,000 miles.
He replaced the motor and continues to depend on it.
He has advised that, when we trade next year to buy a Prius, we trade my husband's Dodge Dakota 2003 truck.
I'm hanging onto my GMC van.
He told me he'd tell me if the day comes when he can't get parts for my GMC.
It's a gem.
GM knows how to make reliable vehicles that last.

Posted by: Judy-in-TX | August 18, 2009 7:33 PM | Report abuse

This recession is finally leaving us, good luck GM, Chrysler and Fords.

Posted by: shipfreakbo214 | August 18, 2009 7:50 PM | Report abuse

How many cars will the Federal Government buy with an empty coffer?

Your blinders refused to see or listen to comments when Obama destroyed the US Icon.

Wasn't that you yelling that people bought things they couldn't afford and it ruined the economy?
You are seeing some light for a change.
Consumption is how it works. A'ama crabs get no trickle down when the taps close off.

Obama is on redress recall petitions with the rest, and Americans have hope for a new government soon. Capitalism is best.
Why is that so bad?

Posted by: dottydo | August 18, 2009 8:08 PM | Report abuse

dottydo: Wow where to begin in response to comment full of mistatements.

How many cars will the Federal Government buy with an empty coffer?
---People are buying the cars not the Government.

Your blinders refused to see or listen to comments when Obama destroyed the US Icon.
--- If by "Icon" you mean GM, they were in a death spiral long before Pres. Obama came along. His actions (and those of the Pres. Bush) might help save GM or maybe not. It is too soon to tell.

Wasn't that you yelling that people bought things they couldn't afford and it ruined the economy?
---I have no idea what you are talking about but i do happen to believe that consumers share some of the blame for the mess the economy is in.
You are seeing some light for a change.
---Again, I have no idea what you are talking about.
Consumption is how it works. A'ama crabs get no trickle down when the taps close off.
---Wow, this one is even more confusing. A'ama crabs? What?

Obama is on redress recall petitions with the rest,
---Really? You can not remove a sitting president with a petition only by impeachment and that will not be happening. What "high crimes and misdemeanors" has Pres. Obama committed? That fact that you do not like his policies doesn't count.
and Americans have hope for a new government soon.
---When in 2010? I doubt it.

Capitalism is best.
---Regulated capitalism is the best. Pure capitalism is everyman for himself and the devil take the hindmost. America is better than that.
Why is that so bad?

Posted by: pjjacobs | August 18, 2009 8:27 PM | Report abuse

We were forced to buy the company ... be darned if I'll give them a dime more... They had the freedom to get too big for their britches ... they should have had the decency to go BANKRUPT.

Posted by: noHUCKABEEnoVOTE | August 18, 2009 8:50 PM | Report abuse

I just bought a Pontiac Vibe, a rebranded Toyota Matrix built by union labor in California. It'll be strange, driving an extinct kind of car.

Posted by: DaveoftheCoonties | August 18, 2009 9:54 PM | Report abuse

"infinite grace… [that] had been allotted to them, and they did not even wonder at the fact, for it had been but the fulfillment of an ever-present hope." Good business pressing on.

GM should be in cold storage. We can blow another $40 billion thanks to sugar daddy in chief. Bad business bad outcomes. Go to, you know where. We are going to be building Mexican Fiats nextican. Frauds.

Posted by: Dermitt | August 19, 2009 9:41 AM | Report abuse


GM DID go bankrupt. The 'new' GM is the re-organized GM. Where have you been? Your overview of what lead to the BK/re-org seems a bit simplistic.

Posted by: Agnostic2 | August 19, 2009 4:04 PM | Report abuse

The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.


Posted by: jimhenry2008 | August 20, 2009 6:49 AM | Report abuse

GM is a disgrace. Blind driving the blind over a cliff. We're getting Mexican 500's on the marxist Fiat restructuring plan. Let's build Yugos again too.

Posted by: Dermitt | August 20, 2009 9:04 AM | Report abuse

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