By on April 16, 2008

x08ch_im023.jpgThe Chevy Impala showed a 1.8 percent gain in sales in March. At the first of April, GM only had a 21-day supply on the lots. The factory in Oshawa, Ontario has been running three shifts with Saturday overtime for several months. So why are they suddenly cutting back on production? An industry source (yes, we have them too) tells us that GM's canceled Saturday overtime and laid off the third shift until further notice. Rumor has it the American Axle strike is affecting the plant; although it wasn't previously identified as one threatened by a parts shortage. The more likely scenario: Chevy's filled all its Impala fleet orders. With overall sales down 11.1 percent for the year, and the distinct possibility that Malibu sales are (as predicted) cannibalizing the Impala, GM's simply slowing Impala production to meet retail demand (or lack thereof). The sales numbers over the next few months will throw some light on the truth of the matter. We'll keep you posted.

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17 Comments on “GM Slowing Impala Production, Laying Off Third Shift...”


  • avatar
    menno

    Considering that the loonie was $1.60 to $1 and now is more like .97 to $1, this has added costs to Canadian production for GM, Ford, Chrysler, Toyota and Honda (for cars sold in the US).

    Doesn’t it make fiscal sense for them to build fewer cars in Canada for low-profit (or no-profit) fleet sales and try to actually turn a small profit on cars manufactured in the states?
    (read: Malibooby).

    Of course the American Axle strike is screwing that up, but perhaps the Chinese parts have nearly reached port by now….

    We’ll find out soon enough if my prediction comes true.

  • avatar
    Cavendel

    Rats!!

    I totally missed the $1.60 loonie days. I went cross border shopping at $1.10. I could’a had a V8.

    I guess you mean back 20 years when a loonie bought $0.65US. It was certainly a nicer vacation in South Carolina this year that in years past.

  • avatar
    jaje

    Maybe GM will find an extra stash of parts soon.

    I would bet that 75% of all Imapala sales are to an end fleet customer. This includes the direct from GM to fleet and the more widely used GM to dealer (counts as a retail sale) to fleet sales.

  • avatar
    Lichtronamo

    After watching a relative’s schedule at a GM plant for several years, how GM schedules shifts and overtime seems to have only a loose connection with sales rates.

  • avatar
    gawdodirt

    The sales numbers over the next few months will throw some light on the truth of the matter.

    Truth is way less interesting than good ol speculation, right?
    Auto News shows that Impala’s sales almost doubled the Malibu. 29k to 15k.

    Fact is that I do see more and more private Impalas around here. Good value on a larger car seem to be a high note. And the damn things will get 25 + on the highway!

    Specially for those that don’t have to have the latest “Talking car.”

  • avatar
    Bunter1

    JAJE- mid year in ’07 had the Imp at around 55% fleet IIRC.

    Gawdodirt- The Imp is big on the outside and in the trunk but the rear seat head and leg room are smaller than nearly every mid-size (ya’ it’s wider than most). Data source CR.
    It’s really just a heavy, long, thirsty poorly packaged midsize.

    Satistically,
    Bunter

  • avatar
    86er

    Bunter
    The Imp is big on the outside and in the trunk but the rear seat head and leg room are smaller than nearly every mid-size (ya’ it’s wider than most). Data source CR.
    It’s really just a heavy, long, thirsty poorly packaged midsize.

    It should be, it’s on the W Platform which came about the same time as the first President Bush uttered “no new taxes”.

    You are right about the width aspect though, unfortunately everything from the D3 is now a Eurasian knock-off and is correspondingly narrow.

    I recently test drove the new Malibu and thought it was a fine car, but is eminently too narrow for my traditional tastes.

  • avatar
    geeber

    I wouldn’t be surprised if Impala sales are being propped up by Chevy customers leaving SUVs and pickups for smaller vehicles.

    Given the platform’s age, and the availability of the (much better) Malibu in the same showroom, I’ll bet dealers are willing to deal on the Impala. That would make the car more attractive to people trading down from an SUV, especially if they haven’t yet paid off that (rapidly depreciating) SUV.

  • avatar
    Bunter1

    86er-I scoot in a ’92 Miata, cabin width isn’t even on my radar I geuss. ;^D

    I geuss my thought is that this car has gotten’ a free ride for being “bigger” for a long time when it just isn’t true.

    See ya’ around,

    Bunter

  • avatar
    86er

    Bunter:
    I geuss my thought is that this car has gotten’ a free ride for being “bigger” for a long time when it just isn’t true.

    Correct.

    If GM could make a roomier car inside with smaller exterior dimensions in 1977, they can do it today.

  • avatar
    jaje

    IIRC – The fleet sales #s are only measured by factory deliveries to the fleet – it does not count the multitude of smaller sized fleet sales from dealers (or cars sold to dealers as rentals for car service).

  • avatar
    Bunter1

    jaje-You probably have a good point on the smaller fleets. I always wonder how many are bought at employee pricing too.
    The W-body mate Bland Prix (french: “consolation prize”) was well over 70% fleet at mid 2007.
    That platform shoulda’ been gone 10 years ago and taken the two valve six with it (does the ‘Bu indicate that GM has finally figured out that there is no point in an engine with the power of a 4 and the thirst of a 6?).

  • avatar
    davejay

    I feel a bit odd admitting this, as a purchaser of primarily japanese cars, but I rented a Malibu recently and really, really liked it, especially the 6-3 cylinder fuel management mode — I ended up with about 25mpg driving around Manhattan and surrounding areas, whodathunkit?

    If it weren’t for the awful resale, the higher price, and the center console hitting my leg at just the wrong spot, I’d have bought one.

  • avatar
    oboylepr

    The Imp is big on the outside and in the trunk but the rear seat head and leg room are smaller than nearly every mid-size (ya’ it’s wider than most). Data source CR.
    It’s really just a heavy, long, thirsty poorly packaged midsize.

    I have heard that the Imp is not too bad on gas but the rear headroom issue is real enough and it’s not confined to the Impala. The late not-so-great Grand Prix was awful in this respect. If you found yourself sitting in the rear at either door, your head would be banging against the low roofline all the time. Just an abysmal design for a so called mid-size car. The Olds Alero and Pontiac Grand Am were even worse for this. Even the much maligned Toyota Echo was far better in this respect. I had the misfortune of being a rear seat passenger in an Imp traveling from Toledo to east of Toronto. Cruel and unusual punishment.

  • avatar
    jthorner

    I’ve spent a good amount of time in modern Impalas and in the Five Hundred/Taurus. The Impala rear seats are especially uncomfortable on long trips. Not only is the headroom terrible, but the seat cushion is too short and too thin.

    The New Taurus is a much, much better vehicle than the Impala IMO, and Ford actually puts a modern DOHC transmission and 6-speed engine in the Taurus while GM is still fobbing off it’s now ancient pushrod engines and 4-speed transmission. Ford also give much better packaging, safety, ride, handling, etc.

    What stumps me is why anyone is buying Impalas. The few retail Impala customers probably literally don’t know any better.

  • avatar
    jaje

    Well the Taurus is based on the older Volvo S80 (about 8 years old) so that older Volvo platform is still lightyears better than Chevy’s 20 year old platforms and 30 year old drivetrains.

    Reason why anyone buys a new “retail” Impala is the deal. You’d be hard pressed to find someone who bought an Impala for its merit. In fact most of the Big 2.8 hardly sell cars or trucks anymore – they sell deals on the cars and that is the majority of their customers – they want to best deal but understand you don’t get the best product.

  • avatar
    jthorner

    “Reason why anyone buys a new “retail” Impala is the deal.”

    Ford is even more agressive with Taurus pricing.

    A Taurus SEL that lists for $24,435 can be easily bought for $20,607 based on carsdirect.com.

    An Impala LT that lists for $23,100 is yours for $21,317 again according to carsdirect.com.

    The SEL is a better equipped vehicle than the LT and can be had for hundreds less.

    So I still think that retail Impala buyers either haven’t done their homework or are simply knee-jerk Chevrolet shoppers.

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