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In order to keep up with increased demand, 1,350 union employees will be brought back to staff extra shifts and overtime at several of its factories.

General Motor's Vice President of U.S. sales, Mark LaNeve, stated in a conference call today that the company is now expecting July and August sales to come in somewhere between 60,000 and 70,000 vehicles above prior estimates.

A lot of the boost in demand can be attributed to the highly popular "cash for clunkers" program, but some are arguing that this can not be the only cause.

Erich Merkle, president of Grand Rapids, Michigan, consulting firm Autoconomy, believes that the demand goes well beyond what can be expected from the "cash for clunkers" program and that it is a sign that the "economy is going to improve fairly quickly."

For the present time, the employees that are being brought to work will be at the company's plants in Ontario, Canada and its plant in Lordstown, Ohio. In addition, the company stated that it is considering bringing back more workers at other factories that are responsible for the production of the Chevrolet HHR small wagon.

Whether or not the "cash for clunkers" program is going to add the intended long term boost to the economy is still up in the air, but at the very least it is bringing people back to work and giving the big American automakers a much need boost in demand.

What are your thoughts on the "cash for clunkers" program? A good or bad thing for the economy? And do you believe the spike in demand is solely attributable to the program, or is the jump a reaction to an overall economic recovery?