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BGA Production Expansion - Surely?

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  • BGA Production Expansion - Surely?

    With the crazy demand that doesn't look like abating anytime soon, surely GM are considering production expansion at BGA? Nothing is impossible right? Or am I being unrealistic? What limiting factors are there? Land? Workers? Other?

  • #2
    A factor that wasn’t listed is the supply base ability to produce to an increased, non-planned volume. Usually an OEM will estimate a peak or capacity volume. Decisions on materials, manufacturing processes, etc are made based on this. For a low volume vehicle, you may pick a long cycle time process and then increasing past that volume will incur the costs of additional tooling (as one factor).

    Years ago the domestic OEMs were usually way too optimistic about demand and thus may have bought extra tooling to meet demand that never materialized. This would also stress the supply base because they would have to plan and facilitize for volumes that never were achieved.
    Al Chan
    2020 C8: Z51/FE4 2LT Coupe; Long Beach Red/Natural Napa competition bucket seats; some other minor stuff
    Other Corvette experiences: '69 427/390 coupe; '92 Z07 coupe; '03 Z06; '09 Z06


    • #3
      A long line of customers is not necessarily a bad thing. One example out if a million in the real world is that bouncers outside clubs are instructed to build a line outside no matter the club is not at all near capacity… that will attract people from the street thinking this is a popular place… if it is popular it will be worth visiting

      As to the current situation with the C8, people are mainly buying it because it is a crazy value proporsition.

      But a part of the DEMAND is not real, it is simply artificial. It comes from:
      1: greedy dealerships stocking the C8 to sell above MSRP where the cars usually sit for a long time.
      2: private people buying the C8 solely to flip it.
      3: other factors, like the example from the clubs above… you’ll have people buying the C8 just because it is the unicorn everybody is talking about and even though you have the money you can’t get unless you wait 2 years or so

      As to the SUPPLY, GM has (like most ither businesses) supply chain issues meaning their production is capped somewhat due to their supply chain… GM can’t make 1,000 C8 if only one item is missing… you can’t make more cars than the lowest denominator

      If I was a business consultant for GM I would ask GM to be ready to scale up when GM has a firm indication what REAL demand GM will have medium- long term and when they are sure supply chain will long term enable GM to actually scale up production.
      Last edited by Top Off Action; 11-23-2021, 08:19 AM.
      Coupe, 1LT, Rapid Blue, orange seat belts and black interior. ETA Late 2021.

      First mods: tinted windows, orange DIY stitching, orange 12 o clock stripe on steering wheel, orange EL-wire in the cabin, orange engine cover, orange painted grille protectors and orange led light in engine bay✌️😎


      • #4
        Originally posted by 11ZSenator View Post
        With the crazy demand that doesn't look like abating anytime soon, surely GM are considering production expansion at BGA? Nothing is impossible right? Or am I being unrealistic? What limiting factors are there? Land? Workers? Other?
        I would think it's purely a supply and labor issue. Need to open a 3rd shift but even if they had the staff, I doubt they would have enough parts, not just chips but the vendors who produce seats for instance apparently ran out of materials a few months back or so I read somewhere.

        A third shift would produce about 90 more cars a day or about 1800 more cars a month assuming 20 work days in a month.

        Just guessing here but I would think the C8 has over 100,000 back orders and the Z06 must be another 25,000, at 3 shifts or 270 cars a day, 20 production days a month is a 2 year back log or 3 years for a 2 shift work week. That's if there we're no more orders sent in.

        I'm sure others on this board have better information as I'm just guessing, but no matter what GM does, the C8, Z06, eRay, Zora and future Corvettes will be in demand for many years.

        I just wish I put my deposit down on the Z06 before the reveal... The list doubled with MM a few days after and I just hesitated too long. Until then I'll be very happy with my C8, should take delivery in 6 weeks!

        I had one of the smaller dealers tell me he stopped taking orders for the Z06 after a few days. Based on his past allocations the list is so long that it's possible GM will come out with a C9 before all of his Z06's orders will be filled.


        • #5
          The Corvette has 400 unique suppliers. If one of them is also making parts also for a GM SUV or pickup with those annual part rates in exceed of several hundred thousand parts annually, and only for example 5,000 of their parts for an option interior component for the C8 annually, when that supplier is having issues in getting parts from their own suppliers, where do they fill their orders? Especially if that parts supplier is having their own employee hiring issues.

          Land is another issue at BGA. Lastly to run two shifts at Bowling Green, the paint shop already needs to work additional hours to supply those painted parts to the two primary line shifts.

          For these reasons I highly doubt that GM would be able to add a third shift. Their worker contract also limits Saturday work to six days annually (and I believe I am remembering correctly that those six days are a maximum of half day shifts).

          GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.