GM may contract out van production to boost capacity for pickups

DETROIT -- General Motors is in talks to offload some of its commercial van production to contract manufacturer AM General, a move that would free up capacity at GM’s plant near St. Louis to make more of its hot-selling midsize pickups.In a note circulated to workers at GM’s Wentzville, Mo., plant on Monday, plant officials said the company is “studying a partnership” with Indiana-based AM General to begin production of cutaway models of the Chevrolet Express and GMC Savana cargo vans built there.Cutaway models, incomplete versions that are sold to upfitters for a specific use such as an ambulance, account for about one-third of the more than 100,000 commercial vans that will have been built in Wentzville by year-end, according to a person familiar with the matter. GM has been steadily shifting more of the plant’s capacity to the Chevrolet Colorado and GMC Canyon midsize pickups since production began there in late summer 2014, while dialing back van output.“The truck and van continue strong sales,” the note says. “This potential partnership would free up production capacity and allow the organization to capitalize on our ability to build midsize trucks to further satisfy customer demand.”A GM spokesman declined to comment. A spokesman for AM General didn’t immediately respond to requests for comment.AM General has been expanding its U.S. contract manufacturing business this year. In August it began production at its Mishawaka, Ind., plant of the Mercedes R class crossover under a multiyear contract. That move freed up capacity at Mercedes-Benz’s plant in Vance, Ala., for increased production of several other models. Surprising demand

GM may contract out van production to boost capacity for pickups

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