GM Breaks Production Record At Arlington, Texas Assembly Plant
51
Sponsored Links
The GM Arlington plant in Arlington, Texas produces The General’s range of full-size SUV models, including the Chevy Tahoe, the Chevy Suburban, the GMC Yukon, and the Cadillac Escalade. Given the immense popularity of these vehicles, it should comes no surprise that the GM Arlington plant is exceedingly busy. Now, however, the facility just posted a record-setting monthly production run.
According to a recent report from Fort Worth Star-Telegram, over 34,000 new vehicles were produced at the GM Arlington plant in March, setting a new record for the most vehicles ever produced in one month in the plant’s seven-decade history.
Located at 2525 E. Abram, the GM Arlington plant spans some 4.375 million square-feet across 250 acres and employees more than 5,000 hourly workers and nearly 400 salaried workers, as of 2021. The plant first opened in 1954.
“Challenges, such as supply disruptions, are overcome by the team on a daily and hourly basis,” said plant executive director John Urbanic. “Our celebration of this milestone is not just about the number, it’s about the people who build consistent quality into every SUV that we produce.”
Since January of 2022, monthly production figures at the GM Arlington plant have varied between 19,154 units (July, 2022) to 27,844 units (February, 2023). Notably, the facility produced 33,767 units in March of 2017.
GM’s full-size SUVs, including the Chevy Tahoe, Chevy Suburban, GMC Yukon, and Cadillac Escalade, are some of the most popular models for the automaker, as well as some of its biggest profit-generators. Notably, the GM Arlington plant exports vehicles to more than 30 countries, in addition to shipping to GM dealers in the U.S.
Per previous GM Authority coverage, GM sales in the U.S. last quarter increased 18 percent to more than 600,000 units. Sales were up at all four of GMC U.S. brand, including Buick, Cadillac, Chevy, and GMC.
Subscribe to GM Authority for GM business news, GM production news, and around-the-clock GM news coverage.
- Sweepstakes Of The Month: Win a Corvette Z06 and 2024 Silverado. Details here.
Sponsored Links
Let’s see if it translates to competitive prices.
Yeah prices are so uncompetitive that they sell everyone they can make
GM counts them sold when shipped to dealers they are starting to pile up around dealers lately even Escalade are , they’ll be cheaper soon
The only dealers that we have seen with Escalade inventory are dealers that are asking massive upcharges to these units.
The post is about record production, not sales. But since most are pre-sold there will be no ‘piling up’.
And GM books the profit when they deliver to dealers, but they don’t count or report any sale until the vehcile is actually sold to a buyer by the dealer.
As a dealer, this makes me very curious. Can you point me to a store with them “piling up?” I haven’t seen a single unit in any configuration sit more than a week in years. We haven’t had one arrive without prior reservation in around a year. Who is getting all the allocation that we aren’t, to the point that they have a selection? GM penalizes dealers who turn slower than average by reducing their allocation, so I am skeptical to say the least.
Dealers buy them from gm… the dealers sell them to the customer…
Let’s see if the logistics companies can set a record.
How about giving allocation that match’s what the year old pre sold are.
As long as quality is not compromised for speed, I congratulate them
I wonder, has Brandon’s Green New Deal sent congratulations to Arlington Assembly?
Yeah, those new Tahoes are sweet!
I thought that factory could produce way more than that per month?
That’s 408,000 units per year. These are high-content vehicles with high build complexity/variation. I don’t know their line-speed, but if they’re at 2 shifts (with overtime and weekends), that’s over 80 jph. That’s a high volume rate , especially for large, high-content vehicles.
*These are very rough calculations with many assumptions. I’m sure someone with up to date data can provide clarity, but by anyone’s calculations, these are very high volumes for full-size, highly optioned, body on frame vehicles.
3 shifts.. 24/7
Remains to be seen if GM’s strategy to go all-electric will translate to similar demand for these popular SUV’s. The supply chain risks for Lithium and Cobalt needed for the batteries is a big problem.
So they produced 33,767 in March 2017 & dealerships were flooded with inventory. They produce over 34,000 March 2023 & there is no inventory on dealership lots. Makes sense….
Makes perfect sense. In 2017 there wasn’t unprecedented demand for vehicles in a market coming out of a pandemic and an alleged supply chain disruption. Dealers are selling every unit they can get their hands on right now. That will eventually cool down, but it is still a seller’s market right now.
No, sorry it doesn’t make any sense. The only reason there wasn’t unprecedented demand in 2017 is because inventory wasn’t being artificially & purposely constrained. Dealers are selling every unit they get their hands on right now because they’re only taking delivery of just a hand full per month, if that. They produced over 34k last month. Where are they? They’re sitting in a yard in Midlothian, Tx. And they will let them slowly trickle out to dealers to keep demand & prices up.
Please study marketing and economics. Scarcity increases demand. The VAST majority of unshipped units are pre-sold. Either custom orders or inventory orders that have been reserved. As a dealer this is a constant source of frustration. The rail system can’t move them as fast as GM can build them. Also look at the recent article about GM investing in a fleet of vehicle transport trucks to help alleviate this problem. That is a *far* less efficient way to move freight than the rail system, but it’s necessary to make room for more units to be produced.
It is not a conspiracy. You just don’t understand the complexity of the situation. Those of us who live in this world know that there aren’t stockpiles of unsold vehicles there. GM doesn’t build vehicles that aren’t assigned to a specific dealer. (At least not yet. They are discussing such a program for EVs as a future business model.) Those dealers have customers waiting for those vehicles. They have also done a much better job more recently of not invoicing them until they’re actually about to ship. (Not perfectly consistent, but way better than they used to be.) That means that inventory isn’t sold and doesn’t benefit them. They had to pay for the direct labor and materials to produce them, plus the inventory carrying costs, only to have them age while waiting for shipment.
I don’t like everything GM does. I’m happy to criticize them where appropriate. But to suggest that GM is deliberately shipping them slowly is a staggering level of ignorance. They make money when selling them, not when making them. SMDH.
*Slow clap* You must work for GM. I more than understand the “complexity” of the situation, this is what I do. I’ve been to the plant in Arlington & have also been to the yard where they are stored in Midlothian. There are thousands upon thousands of Tahoe’s, Suburbans, Yukons & Escalades sitting there. Look it up on Google maps. And while I know that’s not a current image, it will give you an idea of the scale. Anyone with a brain can see what’s going on, not sure why you cant. They straight up said they were shutting Ft. Wayne down for 2 weeks to control dealers inventory. And your statement about the VAST majority of orders being pre-sold is highly inaccurate. The vast majority are not custom orders. Dealer stock orders? Yes. Please do some research & educate your self before posting silly responses online about things you know nothing about. SMGDH
Yes, they did pause the Fort Wayne plant! Where they produce Sierra and Silverado 1500s. Not Yukons/XLs/Tahoes/Suburbans/Escalades/ESVs. Sierras were accumulating on dealership lots. And they do still have parts supply constraints. Do you think it’s a coincidence that just after they paused production of 1500s that they were able to produce more full-size SUVs? Why would they continue the full production schedule of a model that has a supply in slight excess of demand when there are still closely related model which share MANY parts, that they can’t produce enough to satisfy demand? That would be bad business. Yet you are certain that pausing production of 1500s means they are deliberately withholding inventory to boost profits, even though they don’t make a profit on any unit until they sell it to a dealership.
I encounter customers like you all the time who make the same ignorant claim you are. They are convinced that those are all unreserved units just waiting to, what, flood the market? So they’ll make more money then?? Good grief, are you that ignorant?
I don’t work for GM. I sell GMs. And unlike you I understand the fundamental concept of reasoning: that the conclusion follows the premise. Your conclusions are drawn from thin air. Silly responses, indeed!
Yeah, typical salesman BS. You’re obviously not a very good one if your lot is overstocked with trucks. I’m at several large volume dealerships every day of the week & I can tell you that is not the case at all. Lots are very thin. I brought up the Ft. Wayne shut down to make a point. GM as a company is deliberately controlling the flow of inventory, period. You don’t think that GM is intentionally doing the same with full size SUV’s? There are literally thousands of these sitting in Midlothian, TX as well as the Navy yard. I’ve been there & seen it with my own eyes. I really don’t want to even address your comment about the pause in trucks somehow relating to them being able to build more SUV’s…. I mean really? You actually think that they pulled parts from Ft. Wayne & shipped them to Arlington? That’s not how it works. Please do yourself a favor, instead of standing around outside your dealership waiting for the next gullible customer to walk up, put out the cigarette, go inside & log into global connect. Do some research, look at the anticipated build out constraints report. Go to “Manage inventory”, “view in system”, & filter to Tahoe or whatever the hell full size SUV it is that you sell, & see how many are SRE vs. TRE. You may actually learn a thing or two, & save all the rest of us from having to read yet another silly response. Good grief…
It’s true there are hundreds of SUVs in Midlothian, TX. I pass by them all the time. I also saw a large inventory at the old Army base in Grand Prairie last week (4/5/23). These vehicles are constantly being brought back to GM for parts (chips) or shipping out. I’m noticing healthy stock at dealerships around Dallas/Fort Worth so I don’t think they are trickling them out.
So where are they? Just another marketing announcement to show how great they are. I checked two Chevrolet dealers here on the Orlando, Fl area. One has two, the other one hard to say since most of the listings shown are in GA or TN sister dealerships but looks like no more than four.
The rail system can’t keep up. See the recent article about GM investing in a fleet of vehicle transport rigs to help alleviate this issue. I commend them for continuing to produce the vehicles and keep those people employed despite the transport issues.
Ohhhh, that’s gonna be a sweet pizza party! 🍕
At GM Powertrain, Tonawanda, NY, we broke some kind of record a few months back. We got two cookies. No joke.
Let’s get the U.S. orders filled first. In the 6 too 12 week promises they say on orders. But that’s a false statement. So we can ship units overseas. Ordered are 6 to 12 months out
And no dealer allocations
No doubt the factory workers are busting butt.
I agree Johnnyz fulfill pre sold orders that have been waiting 6mo to 1.5 yrs for there Tahoe, Suburban or Escalades.
The Arlington plant and it’s products are GM’s huge blockbuster cash cow. GM should also consider the full size Duramax 6.6 diesel in the Suburban, Escalade and Yukon. This would be a huge winner especially for towing.
34,000 vehicles at at average of $100,000 each is $3,400,000,000 in sales! This may be GM’s most profitable assembly plant.
They don’t average 100k each. The Escalade barely breaks that mark, and they sell a ton more Tahoe’s and Yukons in regular wheel base form. Probably more like 70k average across the board would be more likely.
With pricing changes over the past year, it’s quite easy to hit $115k -$120k on an Escalade, excluding the new V series. I was a bit surprised when I saw that but it makes sense considering the demand.
Now if you went with lower level trims, you’d easily stay under $100k but why go base if you’re buying an Escalade.
Heck, the Denali Ultimate is around $100k if I remember correctly.
Do agree that $100k average MSRP for that factory is well under $100k. Maybe more in the low 80s.
Well that’s not profit, that’s just revenue. They then have to pay for the parts, the plant and the labor….
I want a AT4 shortbed regular cab whith V8’s which are built in the USA but we are only country that can’t get one same as with Trailboss , Middle East and Mexico have them but not us, which is bull crap
As an owner of a Escalade-V built February 24th 2023 I can tell you the quality is horrendous. I have a laundry list of assembly SNAFUS waiting on parts. Some, like a ton of dirt in the paint, misaligned (but tight) front bumper cover and an outward protruding dimple (pdr can’t fix it) on the right rear quarter panel I won’t get fixed. Others like a bent and falling off V badge on the right front door and a front brake rotor that is shedding chips of metal from the swept area because of defective casting will get fixed.
I even fixed a few loose interior items myself because the line workers didn’t even tighten the fasteners so I got my trim tools and torx set out and did it right the first time myself.
I am truly disappointed in the quantity of the quality issues.
VIP ALLOCATION: Sad to learn about your fit and finish woes. Surprised that quality control did not catch. Possible refresher training for inspectors needed. At $100K+ a copy this is inexcusable. I’m entertaining ordering a new Suburban High Country diesel. The local GM dealer in Durango, Colorado, Morehart Murphy Motors, has a service shop policy that it will not work on any vehicle that is 10 or more years old. This includes new GM vehicles purchased from them. The next closest GM dealer is located to the South in Farmington, New Mexico. I usually keep my vehicles more than 10 years. This has now become a challenging decision for me. I wish GM would put mandatory service metrics on their dealers, like Caterpillar does with their equipment dealers. What say you?
Thats what you get for buying a American made car. All of them are full of plastic, paint thats bad after a couple years, service departments that never has the parts or people to fix your American made with pride auto.
GREAT JOB
Now ship them to dealers instead of letting them sit in outlying lots waiting for weeks to transport to dealers
Rg
Still nothing in southwest Utah. Probably trying to put these dealerships under. Although they try hard enough in their own to go under.
Still nothing in northern Utah. Or anywhere. We get calls from every state when we have one listed because everyone is in the same position. GM is HEAVILY reliant on dealerships. They don’t have their own service or delivery infrastructure in place. The idea that they are trying to put dealerships under is a fascinating display of paranoia and poor understanding of the business.
Rail is the most cost effective way to move freight, yet GM invested in a fleet of 400 transport trucks to help alleviate the rail congestion issues which are the primary lingering supply chain constraint. Why would they do that if this was a conspiracy to “put these dealerships under”??
https://gmauthority.com/blog/2023/01/gm-buying-its-own-transport-trucks-to-deliver-vehicles-to-dealers/
Ordered a new 2500 Hd been 17 months still no truck LTZ supposed to be 2024 hope it is soon also Diesel hurry up Gm
2024’s have just started shipping out to the dealers. we have a couple on the railway currently.
How did you order a new (2024) 2500HD 17 months ago? The order book didn’t open until late Jan 2023.
That’s one of the plants I worked at before retirement