GM cars and pickups delivery delayed by slow rail service - ABC 12 – WJRT – Flint, MI

GM cars and pickups delivery delayed by slow rail service

Posted: Updated:
FLINT (WJRT) -

(04/11/14) - The long, brutal winter is still having an impact on Mid-Michigan - but in ways you might not expect. It's keeping new cars and trucks from making it to dealer showrooms.

If you drive by GM Flint Assembly or GM Lansing Delta Township Assembly, you'll see hundreds of vehicles in parking lots, waiting for delivery. The trains that will take them to their destinations are running late.

All around Bristol Road, you'll see Chevrolet Silverados and GMC Sierras sitting in overflow parking lots. Under normal conditions, they would be delivered to far-away dealerships by trains, but GM says this winter's severe weather has strained the North American rail network.

As a result, many industries, including the auto sector, are coping with slowdowns. That is causing backlogs of vehicles at plants and rail yards across the U.S. and Canada.

The statement goes on to say: "GM, like other automakers, are taking steps to ensure that our dealers, and more importantly our customers, are not affected by this situation. As weather improves, we anticipate that the railroads will be able to work through the backlog of vehicles awaiting shipment."

"The most cost-effective way to ship an automobile is by rail. Rail has the advantage of having very low variable cost. Once it's on that train, it moves at a very cost-effective means over a long distance," said Larry Navarre, Kettering University supply chain and product development professor.

Navarre says while car haulers can pick up some of the slack, they aren't as efficient as trains over long distances.

"It's not very cost-effective. Now, in the short term, they may have to do that," Navarre said.

Cold temperatures caused trains to run slower and that helped create the logjam, but there's been an increase in demand for rail service because of fracking.

"Now in the upper Midwest, we have a great discovery of shale gas and that petroleum has got to get to market," Navarre said.

He said he can't wait for his students to return to class next week so he can show them this real world example of how the supply chain works.

  • Local NewsMore>>

  • Raw sewage dumped into Flint River after power failure

    Raw sewage dumped into Flint River after power failure

    Wednesday, August 20 2014 6:41 PM EDT2014-08-20 22:41:07 GMT
    A power failure on Flint's west side Wednesday morning has led to nearly four million gallons of raw sewage being dumped into the Flint River. The raw sewage spilled into the river for nearly nine hours.
    A power failure on Flint's west side Wednesday morning has led to nearly four million gallons of raw sewage being dumped into the Flint River. The raw sewage spilled into the river for nearly nine hours.
  • Beecher schools celebrate first track and field complex in community history

    Beecher schools celebrate first track and field complex in community history

    Beecher schools celebrate first track and field complex in community history

    Thursday, August 21 2014 12:01 AM EDT2014-08-21 04:01:11 GMT
    (08/20/14) - The Beecher school district made history Wednesday. The schools cut the ribbon on their brand new track and field complex! The school has never had their own track before. The community received a $2.2 million bond to make the project happen.The facility will be state of the art, including a new scoreboard donated to the community. The school plans to host state track meets to bring more people to the area. "It's for our students - no matter what the situation we want you to hav...
    (08/20/14) - The Beecher school district made history Wednesday. The schools cut the ribbon on their brand new track and field complex! The school has never had their own track before. The community received a $2.2 million bond to make the project happen.The facility will be state of the art, including a new scoreboard donated to the community. The school plans to host state track meets to bring more people to the area. "It's for our students - no matter what the situation we want you to hav...
  • Olympian Geena Gall returns to her home town, encourages young athletes

    Olympian Geena Gall returns to her home town, encourages young athletes

    Olympian Geena Gall returns to her home town, encourages young athletes

    Wednesday, August 20 2014 11:52 PM EDT2014-08-21 03:52:23 GMT
    (08/20/14) - About 100 people filled the parking lot of a Grand Blanc business Wednesday to see a hometown hero in action. 2012 Olympian and World Relays Gold Medalist, Geena Gall, ran alongside 60 other runners Wednesday evening down Saginaw street.The run was to promote the Michigan Mile on Friday which Gall will take part in. Gall took the opportunity to encourage young runners to train for their dreams. She helped them stretch and warm up, and even signed autographs. "It's so cool to have...
    (08/20/14) - About 100 people filled the parking lot of a Grand Blanc business Wednesday to see a hometown hero in action. 2012 Olympian and World Relays Gold Medalist, Geena Gall, ran alongside 60 other runners Wednesday evening down Saginaw street.The run was to promote the Michigan Mile on Friday which Gall will take part in. Gall took the opportunity to encourage young runners to train for their dreams. She helped them stretch and warm up, and even signed autographs. "It's so cool to have...
Powered by WorldNow

abc12.com

ABC12 Main Station
810-233-3130

Mailing Address:
2302 Lapeer Road
Flint, Michigan 48503

Powered by 

WorldNow
All content © Copyright 2000 - 2014 WorldNow and WJRT. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.