Magna for instance announced it will increase production output at its North American manufacturing facilities. The supplier will do this by putting the factories in overtime, as well as increasing the workweek to six days.
The change in production plan comes after Magna considered having a five-day workweek throughout the year. Yet, given the high parts demand coming from carmakers, the company had to revise its production schedule.
"We've had to ramp up quickly, even with some overtime in some cases," Jim Tobin, Magna executive vice president of business development was quoted as saying by Autonews.
Magna supplies stampings and chassis, powertrain and interior parts in North America. The fact that the two of the largest US based manufacturers exited in recent months their bankruptcy protection added to the increase in demand.
Now the problem facing Magna is that its suppliers may become unable to provide the needed materials for the increased production. To prevent that, Tobin says the company has deputized Paul Stroz, senior vice president of procurement for Magna North America to keep an eye out for potential supplier problems.
In the past nine months, Magna has taken from troubled automakers about $50 million in annualized parts volume. According to Tobin, Magna has factory capacity for the the increased volume of work.
Magna is North America's biggest parts supplier, selling $11 billion worth of components in 2008.
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