GM to Lay Off 14,700, Close 5 US and Canadian Plants

Discussion in 'In the News' started by xcel, Nov 26, 2018.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] DAMN!

    Wayne Gerdes – CleanMPG – November 26, 2018

    [​IMG]
    A lone Volt with a waning sun over the Pacific contemplates its demise.​

    Less than a month ago we reported GM profited heavily in the Q3 of 2018 with net income of $2.5 billion and Operating income rising $600 million to an eye opening $3.2 billion in the quarter.

    GM: Q3 2018 Revenue and Earnings Up Despite Lower Sales

    Today GM revealed how it is attempting to get ahead of any future industry or economic downturn by reorganizing its global product development staffs – read layoff and lower wages, the realignment of its manufacturing capacity – read plant closures, and a reduction of both salaried and hourly workforce.

    From the weasel worded release, Production plants that will be “UNALLOCATED” – Read shuttered, closed down, and discarded in 2019 include the following:
    • Oshawa Assembly in Oshawa, Ontario, Canada, makers of the Cadillac XTS, Chevrolet Impala, Chevrolet Silverado, and GMC Sierra
    • Detroit-Hamtramck Assembly in Detroit, makers of the Buick LaCrosse, Cadillac CT6, Chevrolet Impala, and Chevrolet Volt
    • Lordstown Assembly in Warren, Ohio, maker of the Chevrolet Cruze
    • Baltimore Operations in White Marsh, Maryland, makes of the A1000 Transmission, Hybrid 2-MODE Transmission, 6-Speed Torque Converters, and Electric Motors
    • Warren Transmission Operations in Warren, Michigan, makers of the 6-speed transmission (6T70) for GMC Acadia, Chevrolet Impala and Cadillac XTS and Electric Drive Unit (GFE) for Chevrolet Volt, Chevrolet Malibu Hybrid, and Buick Velite (SGM)
    In addition, the previously announced closure of the assembly plant in Gunsan, Korea, GM stated it will close two additional plants outside North America by the end of 2019.

    GM’s Chairman and CEO Mary Barra, said the plan would save $6 billion a year by the end of 2020.
    As a counterpoint, UAW GM official Terry Dittes said in a statement:
    Additional actions include an increase of component sharing across the portfolio, “especially those not visible and perceptible to customers”, integrating its vehicle and propulsion engineering teams, and reorganizing its global product development campuses.

    With American’s and the world’s automotive buying tastes leaning towards the SUV, GM expects that at least 75 percent of its global sales volume will come from five specific vehicle architectures early in the 2020s.

    On the staffing front, the company will reduce hourly, salaried, salaried contract staff by up to 14,700. Barra added that GM will reduce the number of executives by 25 percent.

    GM expects to take a pretax charge of $3 billion to $3.8 billion including up to $1.8 billion of asset write downs and pension charges. The charges will take place in the fourth quarter of 2018 and the first quarter of next year, with some additional costs incurred through the remainder of 2019.

    SOB, that is going to create more than just a black eye in those areas where the plants will close, and the positions will be eliminated. Merry Christmas to all, and to all a good night. indeed.
     
  2. Carcus

    Carcus Well-Known Member

    Basically, just like Ford, GM is going to stop making cars, ... more or less.


    ----------------------------
    "By 2022, almost 73 percent of all consumer vehicle sales in the United States are expected to be utility vehicles of some sort, and about 27 percent will be cars, according to auto industry forecasting firm LMC Automotive.
    By that same time, LMC automotive expects 84 percent of GM's U.S. sales volume will be SUVs, crossover and trucks. Ford will be at 90 percent, and Chrysler at 97 percent.
    So sedans and other cars are expected to still form more than a quarter of all consumer vehicle sales in the U.S., but the overall trend appears to be that American companies especially are giving up trying to sell cars to Americans."

    Ford is basically giving up on US car business, and GM is not far behind
    https://www.cnbc.com/2018/04/26/for...us-car-business-and-gm-is-not-far-behind.html
     
    Last edited: Nov 26, 2018
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  3. priusCpilot

    priusCpilot George

    RIP Cruze Diesel. Wish they had a tow rating but gone now.
     
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  4. Carcus

    Carcus Well-Known Member

    Last edited: Nov 27, 2018
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  5. Carcus

    Carcus Well-Known Member

    Say goodbye to the Volt, .. and 15,000 north american jobs. Say hello to China Motors — fueled by Coal.

    Is everybody happy? How about another bailout courtesy of the U.S. tax payer,… would now be a good time?

    /there -- I guess I'm done.
     
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  6. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    I'm sorry to see the Cruze go. It was probably not a bad car...........unless you compare it to Civic or Elantra.
    Carcus , if you want to expand on your rant , I'm all ears. lol.
     
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  7. Carcus

    Carcus Well-Known Member

    Ok then, ..

    I'll switch over to the "future vision" view ... And what do I see? Cranes. High rise cranes.

    Almost very city I travel to has got these things popped up all over the center of town. Most likely signaling the death of cars. Everybody is moving into dense urban. (too dense for cars to be practical) It's a trend that has been happening in Europe for some time and looks to be picking up significant steam in the U.S. It means "peak car" -- eventually. . ... and even though small POV BEV's would still make a lot (or at least some) sense in dense urban, Ford/GM are loathe to sell you one.,,, they're going to try and dominate an autonomous taxi system and fence the individually owned car out of the city center -- that's my guess.

    Having said all that,... I think Ford and GM are reading the tea leaves too aggressively (and wouldn't be surprised if Mark Fields was of the same opinion). If GM and Ford are, in fact, trying to quickly parlay their sedan production into autonomous EV fleets, I think they'll lose -- big time.


    Speaking of tea, .. China is still a long ways from peak car... Seems like they could buy a few made in U.S. factories,.. beings that we've bought pretty much every other gd thing in the wally-world from theirs.

    https://www.theguardian.com/cities/2015/apr/28/end-of-the-car-age-how-cities-outgrew-the-automobile
     
    Last edited: Nov 27, 2018
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  8. Trollbait

    Trollbait Well-Known Member

    Electric production growth in China has mostly been in renewables and that monster dam. Their people have had enough with the pollution.
    They are building new coal plants, but also shutting down the old, less efficient, polluting ones. So the level of coal power isn't changing much, or dropping.

    They are pushing coal in other countries as part of their One Belt, One Road policy. Part of that is to appease their coal sector, which is losing business at home.
     
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  9. Carcus

    Carcus Well-Known Member

    China had a recession in the 2016 time frame. They are back on track now. Coal consumption in China was up 3% in the first 1/2 of 2018. Efficiency increases in new coal plants help, but there's no way renewables are going to feed all those electric cars. It'll be coal.

    India and asia in general are getting lots (many hundreds) of new coal plants, many (most?) of which are built by Chinese firms.

    Barring a financial crisis or a serious trade war, Asia coal consumption will continue to rise. Renewable are way too small of a piece of the pie. Natural gas might have an impact.

    /If the asian EV market trends towards SUVs, then that's even more coal needed.
     
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  10. rhwinger

    rhwinger Well-Known Member

    So, all those corporate tax breaks that were going to turbo charge manufacturing in the US? Went to stock buy backs, not corporate infrastructure investments. I'm shocked! NOT
     
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  11. Carcus

    Carcus Well-Known Member

    One caveat to all of this, .. if a solid state battery breakthrough is around the corner, ... then all bets are off.
     
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  12. thunderstruck

    thunderstruck Super Moderator

    There's always a battery breakthrough right around the corner. I've been reading that for at least 5 years now. The researchers drive slower than my 92 year old mom if it takes them that long to get around a corner.
     
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  13. Carcus

    Carcus Well-Known Member

    DT twitter: Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including....

    [​IMG]



    ....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!

    /DT's "media image"? ---- I don't know if anybody spends more money on advertising than GM, .. advertising money owns the media --- and you can figure the rest out.
     
    Last edited: Nov 28, 2018
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  14. Trollbait

    Trollbait Well-Known Member

    The track record is better than with fuel cell cars.
     
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  15. Carcus

    Carcus Well-Known Member

    10 years on after the $33 billion bailout and “green” promise for jobs in the future.

    Volt — fail
    Bolt — failing ($37,000 subcompact chevy with 180 mile range), sales in steep decline since M3 introduction
    ... and still, not one good phucking hybrid, ... NOT ONE! ** edit** now -- not one hybrid, good or otherwise

    15,000 N.A. jobs — lost
    car production — lost

    meanwhile, in China and Mexico …. What’s not to like?

    /I can't stop ranting ... this shlt just drives me crazy.
     
    Last edited: Nov 28, 2018
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  16. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    238 miles. The Volt , IMHO , was not a fail. The American and Canadian people just failed to buy it.
     
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  17. Carcus

    Carcus Well-Known Member

    180 miles is about all the highway distance anyone is going to plan for in between charges in a Bolt.

    You and I both went car shopping over the last few years. Neither one of us bought a Volt. I never seriously considered buying a Volt (i.e. test drive, talk with the salesman, see what the deals were). Did you?
     
  18. Carcus

    Carcus Well-Known Member

    GM's secret plan to shut plants, cut jobs likely signals more to come

    It looks like GM, (and probably Ford), just don't want to sell you a car anymore. They'll rent it to you. And it 'might' be electric.

    -------------------
    "A document GM filed Monday with the Securities and Exchange Commission ------"

    "The plan is expected to strengthen the company’s core business, capitalize on the future of personal mobility, and drive significant cost efficiencies, and it consists, in relevant part, of restructuring the Global Product Development Group, realigning current manufacturing capacity and utilization, and reducing salaried and contract staff and capital expenditures. These actions are expected to be substantially completed by the end of 2019."
    https://www.freep.com/story/money/cars/general-motors/2018/11/28/gm-plant-closings-jobs/2137547002/
    ---------------------
    What is "personal mobility"? Basically, it means you don't own a car. Note the part where the GM VP talks (dreams?) about her 8 year old never learning how to drive. Holy shlt.


    meanwhile, Toyota and Honda are going to sell you nicely equipped sedans that get 50+ mpg for a reasonable price. ...
    /If this is GM's (and Ford's) plan, ... this is a crazy bad plan.
     
    Last edited: Nov 29, 2018
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  19. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    I wonder how many people actually WANT to driven around in an autonomous death-mobile.

    How many want to actually control/steer/shift/brake their own ?

    Crazy bad plans are becoming normal.
     
  20. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    I wish I could have seriously considered one. It would be about $8-10K more than I was willing to spend.
    On paper , it seemed/seems like a good idea.
     

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