In preparation for predictions of a busy summer season, most major U.S. automakers will be boosting physical inventory counts to meet rising consumer demand. Since April, demand for cars and light trucks have risen 7 percent, forcing companies to rethink their production strategies.
According to The Associated Press, U.S.-based vehicle manufacturing firms used to pause production for approximately 14 days every year at some point during the summer months. However, as consumer demand for American-made motor vehicles rises, major automakers will have to significantly reduce the amount of break time scheduled at manufacturing facilities.
Chrysler plans on implementing a two-week break at four of its production facilities in Canada and the U.S. to upgrade equipment and repair assembly lines to produce new models. In addition, the AP reported that General Motors will likely institute a shortened break period at some of its locations and that Ford will not shut down any of its assembly lines in the coming months.
This situation presents a few significant issues for major automakers to deal with this year. By altering the production schedule, these companies will have to account for the change when conducting physical inventory counts, as the new production schedules may significantly alter earlier production estimates. In addition, the new plans may cause assembly line employees to work far more hours than initially expected. Automakers can prepare for this uptick by instituting better timekeeping software.
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