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Auto Report: GM's Wentzville Expansion a Gamble

Auto news website says General Motors investment in small pickup trucks could be a gamble.

recent plant expansion in could be a gamble for the auto giant. That's according to The Detroit Bureau, an automtive news website that tracks auto news from around the world.

The report, written by Bryan Laviolette, says GM is gambling that sales for smaller pickup trucks will grow, precisely the opposite of Ford’s strategy.

From the story:

Ford ended production of its small Ranger pickup last year and won’t sell its replacement stateside. Ford has said small pickup trucks have grown so much that there’s little differences between them and their full-size brethren. And those who bought the Ranger as a work vehicle or because it was simply the cheapest new vehicle in the Ford showroom have other options such as the TransitConnect and Fiesta.

The 500,000 square-foot annex to the Wentzville plant was , which will house GM’s new production line of a redesigned  Colorado pickup truck as well as add a second shift of workers to produce GM’s Chevrolet Express and the GMC Savana vans.

Gov. Jay Nixon, who attended the ceremony, said the expansion will create 1,660 new manufacturing jobs. 

“It is absolutely no accident that the rebirth of the American auto-industry is occurring right here,” Nixon said. “For generations, Missouri workers have kept America moving forward, and today Missouri’s autoworkers are once again leading the way for our state, for our country and for the world. This is Missouri’s moment.”

What do you think? Is GM's expansion a sound investment or a gamble on the auto maker's behalf?

lessietrejo May 24, 2012 at 11:35 AM
The Detroit News reports insurance premiums have declined 5 years in a row. I can't remember a cycle like this ever. Of course, not everybody has had a decline, mine actually went up high but found "Clearance Auto" that I could easily reduce it

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