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GM cuts

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  • GM cuts

    Sad day for GM workers, sounds like there are some hefty cuts coming and some plant closures. It's really going to impact us here east of Toronto, the Oshawa plant sounds like it's having a partial closure and cutbacks.


  • #2
    This is the list, courtesy of USAToday:

    Assembly plants
    Oklahoma City, Okla., will cease production in early 2006.
    Lansing, Mich., Craft Centre will cease production in mid-2006.
    Spring Hill, Tenn., Plant/Line No. 1, will cease production at the endof 2006.
    Doraville, Ga., will cease production at the end of its current products' life cycle in 2008.
    Third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.
    Third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand.

    Stamping, power train and service operations
    Lansing, Mich., Metal Center will cease production in 2006.
    Pittsburgh, Pa., Metal Center will cease production in 2007.
    Parts Distribution Center in Portland, Ore., will cease operations in 2006.
    Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006.
    Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007.
    One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007.
    St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008.
    Flint, Mich., North 3800 engine facility (``Factory 36'') will cease production in 2008.
    It's a Hoosier thing, you wouldn't understand...


    • #3
      Redundant. Needs deleted


      • #4
        Unfortunately the handwriting has been on the wall for this for several years. GM needs to get a handle on their retirement cost as well. While the closures and layoffs are sad, by taking these actions GM may become a revitalized auto-producer and be able to fulfill all their current pension obligations. Given the recent changes allowed for funding, they may be able to do so.
        ...Always follow the money


        • #5
          Agreed, although they also have to start selling some cars without massive incentive programs.

          I heard the Vibe is made by Toyota??? Anyone know if that's true?



          • #6
            GM is still hiring here: https://www.elancers.com.br/frames/gm/frame_geral.asp

            (Expect a pay and benefit cut, though.)
            "Being second is to be the first of the ones who lose." --- Ayrton Senna


            • #7
              The Toyota Matrix and Pontiac Vibe were co-designed by GM/Toyota and the Pontiac Vibe is built by NUMMI , a joint venture between GM and Toyota. NUMMI also builds Corollas and Tacomas.


              • #8
                Spring Hill closing? Where does this leave Saturn?


                • #9
                  Originally posted by greg b
                  Spring Hill closing? Where does this leave Saturn?
                  I think that is only one line, not all of Saturn.
                  It's a Hoosier thing, you wouldn't understand...


                  • #10
                    Originally posted by greg b
                    Spring Hill closing? Where does this leave Saturn?
                    Hopefully still orbiting the sun.

                    Oh, you mean the car company?
                    "When people say there's nothing wrong with the product, that all it needs is better marketing and promotion, that's a pretty good clue they don't know they have a product nobody wants," Tommy Kendall, 6/19/04


                    • #11
                      Originally posted by jonovision_man
                      Sad day for GM workers, sounds like there are some hefty cuts coming and some plant closures. It's really going to impact us here east of Toronto, the Oshawa plant sounds like it's having a partial closure and cutbacks.
                      And southeast michigan is about to get kicked in the mouth. We did NOT need this... :mad:


                      • #12
                        General Motors Corp. <GM.N> said on Monday it will cut more than a quarter of its North American manufacturing jobs and slash the number of vehicles it produces as the world's No. 1 automaker struggles for survival.

                        The 30,000 job cuts represent 27 percent of the company's total North American manufacturing work force, using GM data from the end of last year. It is the largest GM cut since December 1991, when it said it would close 21 plants and eliminate 74,000 jobs.

                        The latest plan, which affects at least a dozen plants in the United States and Canada, would allow the company to achieve $7 billion in cost reductions by the end of 2006 — $1 billion above its previous target and represents 5,000 more job cuts than the auto maker had previously indicated.

                        GM warned that it will need to take a "significant restructuring charge" associated with this plan, but did not spell out how large a charge it would be or when it would be taken.

                        GM Chairman and Chief Executive Rick Wagoner said he was not prepared to discuss the company's 2006 profit outlook.

                        "Fundamentally, if you look at our liquidity structure, we're on very sound financial footing," he said.

                        In Monday trading, General Motors shares were up 20 cents, or 0.8 percent, at $24.25 on the New York Stock Exchange. The auto giant has lost nearly $4 billion this year, while its shares have lost more than 40 percent of their value and hit a 14-year low last week.

                        The plants affected include those in Doraville, Georgia; an Oklahoma City plant that makes mid-size SUVs; plants in Ontario, Canada, Pittsburgh and Portland, Oregon; and its Lansing, Michigan Craft Center which makes a pickup truck.

                        Wagoner earlier this year said he planned to cut manufacturing capacity to match demand by 2008.

                        "It's a big move … We're confident that this is what it's going to take to get us going," Wagoner said at a press conference in Detroit.

                        GM said it hoped to be able to achieve much of these cuts through attrition and buyouts


                        • #13
                          What a response by the UAW! These guys are a key contriutor to the position GM finds itself in today, yet they state they cannot let GM reduce their position in the market and reduce the size of their workforce?

                          IMHO Unions have over the years forgotten that it is the job of the union to provide a trained, able and reasonably priced workforce to companies that employ their members. If the unions would focus on the properly trained and able workforce, and eliminate the featherbedding practices they employ many corporations would stand a much better chance of operating in the global environment of today.

                          It is not the contracts regarding the workforce that determines a manufacturers standing in the market. It is the global marketplace acceptance of their product. The market is speaking. They will accept the products GM produces, but not in volumes and prices that will continue to support the current GM workforce. Production needs to be trimmed so the quantity of their products meets the size of the demand. When this happens, prices can increase when the market can not obtain sufficient or timely quantities of GM automobiles and trucks. Continuing to flood the market with products that need to be heavily discounted in order to create an artificial demand is not the right answer.
                          ...Always follow the money


                          • #14
                            I heard the response from Buzz Hargrove, president of the CAW (Canadian Auto Workers).

                            He sounded border-line giddy, he was so optimistic. He said he felt 100% of the Oshawa cuts could be done through attrition, and that even if they didn't reach that goal the buy-outs would be enough to tide the others through to their contract talks in 2008.

                            Another thing he said was that they were going to push the government to entice GM to keep plant #2 open, hopefully attract a new product line.

                            There was a Canadian pundit who suggested the cuts to Canada were cosmetic only, and were intended more as a political move to show the UAW that the pain was being spread, when in fact Canada would end up being spared by the time implementing the cuts comes around.

                            Given Buzz's response, I don't think this is as unlikely as it sounded when I first heard it.

                            When Toyota announced an expansion in Canada, they cited Canada's health care system as a big factor. Given GM's getting squeezed on health care for reitrees, is it all that likely that they want to keep production in Canada while scaling back the U.S.?



                            • #15
                              The UAW guy nailed it.

                              The workers aren't the problem at GM, it's the PRODUCTS!! If they designed cars that people wanted, labor wouldn't be an issue.

                              I presume GM knows this, and that's why they are cutting where they are. Yes, there is overcapacity, but that's because the PRODUCTS are not selling. That is not the job of the UAW. They're job is to build cars. Marketing/design heads also need to be rolling in Detroit and New York.

                              That said, long term, this is a good move for GM, and for those that remain at GM.

                              The thing I admire the most about GM right now is they are TRYING to salvage the company for the benefit of their retirees and workers. The other option is to just dump their obligations (contracts they freely signed) and foist more pension and healthcare costs on the government.

                              That would suck.

                              And most of this is very much showing that this country needs to address it's healthcare system.

                              Financially, it's not working for the companies, the retirees or the poor.
                              We flipped our finger to the King of England
                              Stole our country from the Indians
                              With god on our side and guns in our hands
                              We took it for our own!


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