Previously, General Motors awarded the Oshawa, Ontario, assembly plant much-needed new product. At the time, we simply understood that the Canadian plant will build the outgoing versions of the Chevrolet Silverado and GMC Sierra. Oshawa is actually part of an intricate plan to reduce lost production as GM prepares to launch the 2019 Silverado and 2019 Sierra.
The Motley Fool reported last Thursday that GM will tap the “Oshawa Shuttle” to keep lost Silverado and Sierra production to a minimum. As GM works to retool its various production facilities in the United States and Mexico to build the 2019 Chevrolet Silverado and 2019 GMC Sierra, the automaker expects to take a drastic hit—a 120,000 production figure hit.
In a market hot for pickups, that’s a lot of lost sales. However, by shipping partially assembled pickups to Oshawa for final assembly during the transition period, GM hopes to reduce that figure to just 60,000. It’s not an ideal situation, but it will put GM in a better position amid retooling.
GM said it’s already begun retooling and changes at its factories around the holidays, but there’s no avoiding the extensive work needed to build the next-generation Silverado and Sierra. The pickups ride on a new platform and incorporate more aluminum, which calls for changes to the assembly process.
If GM’s master plan pans out, it could recoup any lost profits from lagging production later this year when the new trucks launch. The 2019 Silverado and 2019 Sierra are more profitable than the pickups they’ll replace.
Comments
Yes but it makes no sense because of the “Oshawa Shuttle”. Because current generation trucks will be built at Ft Wayne, IN to start then get shipped to Oshawa Plant to get finished then shipped back to the US to be sold. While they are building the current gen trucks for the “shuttle” means they will be losing out on sales of the 2019 next generation model. If anything build the next gen truck at Oshawa being that line is not being used currently
The heavy duty GMC and Silverado 2018 builds continue in Canada being built in Oshawa again as we built Trucks from early 1900s
Meanwhile ford will be selling there diesel and ram selling there new 2019.. Gm is retooling? They could have done this better…
all automakers have to do retooling to bring out new product
This is so GM doesn’t lose sales to those that really don’t like the look of the 2019’s, and may still be swayed to buy the older models. GM has done this in the past when the new models were such a sharp contrast to the older models. Many truck buyers, even brand loyal ones, really don’t like a too radical change when the new models come out.