General Motors to Close 12 North American Locations

[joatmon]

http://quote.bloomberg.com/app...=homelong article, here is one quoteQuote » GM will close assembly plants in Doraville, Georgia; Lansing, Michigan; Oklahoma City; Spring Hill, Tennessee, and a car plant in Oshawa, Ontario. The automaker will shut down engine plants in St. Catharines, Ontario, and Flint, Michigan. GM will also reduce shifts at plants in Moraine, Ohio, and a second car plant in Oshawa.The majority of the closings and shift reductions will be complete by next year. The Georgia and Oshawa closings will come by the end of 2008. The plan to cut 30,000 jobs is the biggest since 74,000 were eliminated during the early 1990s.Not Selling``If they're not selling the cars, I don't know how they can keep running the plants,'' said Al Benchich, president of United Auto Workers Local 909 at a GM transmission factory in Warren, Michigan. ``The UAW has acknowledged that GM doesn't have the market share to support its current structure.''

[tnpartsguy]

GM.COM link to the annoucement.http://media.gm.com/servlet/Ga...20772Hope nobody here is affected by the plant closings, and that those who are will be able to find another job soon.

[scherry2]

over the next 2 years:http://www.nytimes.com/2005/11...print G.M. said it will shut down five automobile assembly plants in Oklahoma City; Lansing, Mich.; Spring Hill, Tenn.; Doraville, Ga.; and Oshawa, Ontario. Seven parts factories and distribution centers will be closed in Pennsylvania, Michigan, Oregon and Ontario.

[IMakeVibes]

Here we go again. American automakers keep going through these cycles every decade or two. But this time, its probably more serious than ever. With all the 'foreign' automakers building plants in North America and being able to make vehicles as good as, or even better than the 'American' automakers for less money is going to have a lot of people hurting for a while.And the mess with Delphi isn't helping any.I say 'foreign' and 'American' automakers because as most of us probably know, the definition of what is American and what is an import seems to be continually changing. NUMMI is in an odd situation because we are an American company manufacturing vehicles for an 'American' auto manufacturer as well as a 'Japanese' auto manufacturer in a building which was a former GM plant with equipment which is primarily made in Japan. The two parent companies, Toyota and GM, seem to be committed to each other and want to continue the relationship. Guess we'll all have to wait and see what happens. Best wishes to all effected by these latest closures. Thats never an easy situation.

[jake75]

Perhaps Toyota has too much invested in NUMMI to do this, but at some point when Toyota passes GM in sales one might think they would break this tie. While there is considerable disagreement on this board, I think the majority here considered the Toyota genes in our Vibes to be at least a very strong positive is not a compelling reason to buy. What's the advantage to Toyota? I for one would not have bought my VIBE if not for the fact that it was made by NUMMI. [I still hold a grudge over the way I was treated by GM in regard to my unreliable 1977 Buick Estate Wagon that I bought new back in the days when that was a very major purchase. A car that won't start is useless.]

[ColonelPanic]

This is going to be a hard hit for everybody. Not only the families of the GM employees, but their communities will suffer as well as a result. I wish everybody the best of luck and I hope that all parties involved in making these decisions will help their employees find something else.Most of the plants they are closing are producing vehicles that are assembled elsewhere. But what about those vehicles that are sourced from only one place, i.e. the Ion from Spring Hill and the minivans from Doraville? I haven't heard what their plans are for those vehicles vehicles. I guess they will be shifting production to other plants? Or, are they going to kill off those vehicles all together?

[tnpartsguy]

Quote, originally posted by ColonelPanic »This is going to be a hard hit for everybody. Not only the families of the GM employees, but their communities will suffer as well as a result. I wish everybody the best of luck and I hope that all parties involved in making these decisions will help their employees find something else.Most of the plants they are closing are producing vehicles that are assembled elsewhere. But what about those vehicles that are sourced from only one place, i.e. the Ion from Spring Hill and the minivans from Doraville? I haven't heard what their plans are for those vehicles vehicles. I guess they will be shifting production to other plants? Or, are they going to kill off those vehicles all together? The Ion is a terrible seller, they have 120+ day supply on the ground right now, and the Astro mini van was slated to be discontiuned twice before, and demand brought it back, but the demand isn't there to keep it around now. I don't know what they build at the Craft Centre anymore, it used to be Buick Rivira and Oldsmobiles, any ideas what they build there now? OK City was building Trailblazers and their GMC counterparts last I heard. I wish I knew what was built where again, GM used to have it on the GM.com site, but I can't find it anymore.

[scherry2]

Quote, originally posted by jake75 »I think the majority here considered the Toyota genes in our Vibes to be at least a very strong positive if not a compelling reason to buy. speak for thy self. I bought my Vibe Because it has:1. GM name plate2. built by UAW workers3. built in the U.S.A.as for all those that will be displaced, there are other plants that they will be able to transfer to. GM is also going to offer incentives to retire. its sad that workers have to relocate (after working in certain plants for 20+ years). I've only had to move 1 time in my 29 years, but some people in our plant have come from 5 different factories, GM and Delphi. some of the closings will be later in 2006 on till 2008 so people aren't going to decide tomorrow anyway. still its going to be like a kick in the balls to the workers in each factory, and the surrounding businesses are all going to feel it. like Huston said "you young folks better hang on to your hats" Quote, originally posted by jake75 »I still hold a grudge over the way I was treated by GM in regard to my unreliable 1977 Buick Estate Wagon 28 years to hold a grudge, man, you have to just let it go...

[ColonelPanic]

Quote, originally posted by tnpartsguy »The Ion is a terrible seller, they have 120+ day supply on the ground right now, and the Astro mini van was slated to be discontiuned twice before, and demand brought it back, but the demand isn't there to keep it around now. I don't know what they build at the Craft Centre anymore, it used to be Buick Rivira and Oldsmobiles, any ideas what they build there now? OK City was building Trailblazers and their GMC counterparts last I heard. I wish I knew what was built where again, GM used to have it on the GM.com site, but I can't find it anymore.I was talking about the car-based minivans, and not the Astro/Safari. The Uplander, SV6, Relay, Terraza - those are built at Doraville, GA. The rwd truck-ish Astro, yes, they killed that off and will be (or have already) closed the Baltimore plant where those came from. Not like they sell many of the new minivans anyway, I guess. They can always kill those four models and build more SUV's, I guess. I think the craft center churns out the SSR which nobody ever buys, the nail has been in the coffin for that thing as long as it has been on the dealer's lots, so that's not much of a surprise.

[joatmon]

http://www.tennessean.com/apps...INESSQuote »DETROIT -- Ford Motor Co. will cut about 10 percent, or 4,000, of its white-collar jobs in North America next year, mostly through involuntary layoffs, as part of a sweeping cost-cutting plan to be unveiled in January, the company told workers in an e-mail....Between them, Detroit's three automakers have trimmed about 100,000 hourly and salaried positions in the United States since 2000. Chrysler shed 6,000 hourly and salaried jobs in 2004 and has cut 40,000 positions since 2000, including a round of massive layoffs in 2001. GM has steadily cut its white-collar levels in North America by about 6 percent a year through attrition.Ford salaried workers will have to wait through the holidays to find out if they have a job next year. Workers were notified in an e-mail Friday....

[kostby]

Check this fascinating quote from the NYTimes article link provided by Scherry2 above:Quote » Today, U.A.W. leaders denounced the move as "disappointing, unfair and unfortunate." "We have said consistently that General Motors cannot shrink itself to prosperity," Ron Gettelfinger, the president of the union, and Richard Shoemaker, the vice president, said in a statement. "In fact, shrinking General Motors only exacerbates its problems."QUESTION: How DO you solve a manufacturing overcapacity problem?The place: GM Headquarters, Detroit, MichiganThe date: January, 2006Announcer voiceover begins as video shows acres of GM vehicles surrounding manufacturing plants and dealerships."Starting today, and for a limited time only, all those slow-selling GM cars and trucks you see collecting dust at your dealers will be absolutely free. That's right, folks. F-R-E-E! No. It's not a gimmick. We're serious! We call it the 'Giveaway Pricing Program for Everyone and their Brother'Just come in and take one off our hands, and we'll be so happy we'll just hand you the keys and wave goodbye as you drive off in your shiny new 2003 Chevy SSR. Or 2003 Saturn ION. Or 2003 Pontiac Aztek.By giving these fine vehicles away, we can continue to build a million more vehicles than we can sell every year. That keeps our proud American workers and American factories busy. Thanks to years of tough UAW negotiations, it costs us less to just give the cars away than to lay off workers. In fact, another exciting feature of the GM Giveaway program is that each new vehicle also comes complete with it's own UAW worker!Just think! One of the people who assembled your car will be RIGHT THERE to answer all your questions! By giving you your own GM worker with your new vehicle, this eliminates all the negative economic impact of that could occur with layoffs in so many fine American cities. Remember, along with your new car, your GM worker will be yours to keep! Be sure to house, feed, clothe, provide medical care, and emotional support, and you'll be able to claim him or her as a dependent on next year's taxes!Some restrictions and conditions apply. See your dealer for details. Offer ends 12/31/2029, or when the last Aztek is sold.

[scherry2]

I also found this:Spring Hill Plant Not ClosingSaturnFans.com ? November 21, 2005 Contrary to what some news outlets are reporting today, General Motors is not closing its Spring Hill, Tennessee manufacturing facility. In its current configuration, the Spring Hill plant is made up of two automobile production lines and a powertrain complex. As part of a major restructuring announcement this morning by GM CEO Rick Wagner, the former Saturn complex will cease production of the compact ION sedan and quad coupe that are built on "Line 1" at the plant by the end of the 2006 model year. The second production line that builds the VUE sport-utility will remain operational for the near future. Sources tell SaturnFans.com that GM will use the downtime on Line 1 to replace legacy Saturn manufacturing equipment installed in Spring Hill with state-of-the-art GM flexible gear that will give Spring Hill the ability to build a new, unannounced product.Despite these changes, Saturn will continue to offer a small car in its lineup. Beginning with the 2007 model year, ION production will reportedly move to Lordstown, Ohio and will be built alongside the Chevrolet Cobalt and Pontiac Pursuit. Despite these changes, Saturn will continue to offer a small car in its lineup. Beginning with the 2007 model year, ION production will reportedly move to Lordstown, Ohio and will be built alongside the Chevrolet Cobalt and Pontiac Pursuit. Rumors suggest that at that time the "ION" nameplate will be phased out and replaced with the name "Evoke."

[Atomb]

it's too bad about Oshawa. from what i understand they've won an award along the lines of being the highest quality plant in North America a few time over the last couple of years (i know there's a reference to it on genvibe, but can't find it right now)...and this is in comparison to EVERY brand being built in North America!To make it even more of a kick in the pants, DaimlerChrysler announced yesterday a 700 million dollar investment in Ontario to expand operations....for a plant that will make robotics ...which will be used to manufacture cars.....and reduce the workforce in their plants!i also didn't realize that GM was the consumer for close to 50% of parts manufactured in Ontario...so the autoparts companies around here should be feeling rough this morning too.

[ZubenElGenubi]

Quote, originally posted by jake75 »I think the majority here considered the Toyota genes in our Vibes to be at least a very strong positive if not a compelling reason to buy. Quote, originally posted by scherry2 »speak for thy self. I bought my Vibe Because it has:1. GM name plate2. built by UAW workers3. built in the U.S.A.Hate to break it to you, but in the thread titled Why did you buy the Vibe? many GV members here responded exactly along jake75's point, that is, they liked the Pontiac styling and Toyota reliability. That is true for me, personally.

[merckx56]

I feel for the folks who are losing their jobs, but damn, do you guys not understand that the union is the one that is strangling the life out of the American auto industry.I just watched a thing on MSNBC about the GM plant closings. GM has 1 active worker for every 2.5 pensioners!! GM is paying idled workers 75% of their pay...for doing nothing. Pensioners make between 50-75% of their last active year pay and still get full medical benefits.It's estimated that the idled workers will cost GM $500 million in pay and benefits this year!!!I will readily admit that unions built this country, but now, they are systematically destroying it....And assembly-line workers take home $8 to $10 an hour in pay and benefits -- a high wage in Mexico, but a bargain compared with the $60 it costs to employ the average U.S. unionized worker. Although labor costs account for just 10% to 15% of a finished car's cost, that margin can make a difference to Detroit's beleaguered auto makers.(Borrowed from a BusinessWeek article).It's time to call a spade a spade folks...

[michaelgt]

Jake75I agree that it is time to let go of the grudge from the 1977 Buick. What engine was in that car? My Grandfather bought a 1977 Impala with the 305, and I had that car when it reached 180k miles. Never had engine or transmission work! I sold it to a family friend when a lifter started going bad, and after a engine overhaul, the friend drove the car 3 years and almost another 30k miles before it was tragically destroyed in an accident.Do you hold the same grudge against any other company that may have sold you a bad product?

[scherry2]

Quote, originally posted by merckx56 »I feel for the folks who are losing their jobs, but damn, do you guys not understand that the union is the one that is strangling the life out of the American auto industry.It's time to call a spade a spade folks...and if you have never worked on the line in a factory or a union member or in managment for GM you have no idea what your discussing. which lately I have been guilty of in the political asylum, and I apologize.lets call a spade a spade.....it all the unions fault, yea the union made GM build all those factorys so they could over produce all the cars and trucks in the 70's (because they were the big 3 and there never was a toyota, honda ect...) and in the 80's and 90's. the union should have gone to GM and said "lay abunch of us off because we can't keep building all these cars and trucks and making the stockholders money"its all the unions fault that GM negotiated a guaranteed wages and not jobs back in the 80'sits the unions fault GM bought Fiat for billions then lost billions selling it.want me to go on? do you guys not understand, its not all the unions fault that GM is in the position it is in today.

[kmvibe]

I'm a UAW autoworker at the GM assembly plant in Spring Hill. This annoucement will affect me. I have to agree with scherry2 on this subject. It's easy to blame to the union for GM's problems. I blame GM for their decisions in the past. The Fiat deal is an excellent example of "What the hell were they thinking?". GM is now suffering for the idiotic decisions they've made over the years...Kenny

[jimincalif]

Seems to me there is plenty of blame to go around. Ford pretty much in the same boat.1. Management. Management agreed to the wage/benefit/layoff packages, with greatly backloaded costs. Even so, they might have been able to pay for them if they were making competitive products. They underinvested in product development and were left behind. They carried outdated models longer than the imports, they don't hold up as well and depreciate faster.Also, all thru the 90s they were content to wrack up profits from SUV sales. It was totally predictable that this fad would run its course, either from oil prices, demographics or simply to be replaced by another fad. 2. Government. The legal/labor environment tilts in favor of unions, making it almost impossible for management to get a reasonable deal. They agreed to many of the now ruinous union demands to avoid ruinous strikes at the time. Human nature to punt the problem down the road and hope it goes away. 3. Unions. They took advantage of the situation available to them. Understandable, just like management, they pressed for as much as they could get. Unfortunately just like the management decisions to agree, it now looks as if these were short-sighted decisions, as they've literally killed the goose.Don't think there are any easy answers. The adversarial management-labor paradigm is outdated. But politicians and labor leaders will continue to demagogue. Likely a bankruptcy judge will end up calling the shots.

[Houston]

Quote, originally posted by merckx56 »I feel for the folks who are losing their jobs, but damn, do you guys not understand that the union is the one that is strangling the life out of the American auto industry. For decades, unions made for decent, even great, lives for millions of common, ordinary working people and their families in the United States. Because management wanted to keep its salaried employees a step ahead, those employees also benefitted. Quote, originally posted by merckx56 »I just watched a thing on MSNBC about the GM plant closings. GM has 1 active worker for every 2.5 pensioners!! /QUOTE]That ratio is going to get much worse, as GM continues to downsize thereby forcing thousands more into retirement.[QUOTE=merckx56]I will readily admit that unions built this country, but now, they are systematically destroying it....And assembly-line workers take home $8 to $10 an hour in pay and benefits -- a high wage in Mexico, but a bargain compared with the $60 it costs to employ the average U.S. unionized worker. Although labor costs account for just 10% to 15% of a finished car's cost, that margin can make a difference to Detroit's beleaguered auto makers.(Borrowed from a BusinessWeek article). The problem is not the unions: The problem for workers of this country is globalization and its resultant equalizing of workers of the world. Workers in many other countries are paid peanuts to build cars and other products. Workers in the US are now also being required to settle for peanuts or their jobs will be sent to other countries.Even if all US workers were willing to work for $10 per hour with no benefits, products can still be manufactured in other countries paying cheaper wages.The US is in quite a predicament, that's for sure, and I don't know the solution.

[Atomb]

Quote, originally posted by Houston »The problem is not the unions: The problem for workers of this country is globalization and its resultant equalizing of workers of the world. Consumers drive industry to this by demanding cheaper prices (or rewarding those with cheaper prices) at the cash registar through sales. Don't tell me you've never sought a 'deal' on something...I really like jimincalif's summerization...best worded and most logical post on this subject. Thanks for your words.

[Mavrik]

This is going to be really tough on Ontario... there goes a lot of jobs. I know people working at those effected places. I wonder how this will effect the parts warehouse in Ontario. Its in woodstock and a lot of the people who work there live in woodstock. Flint MI is also a huge GM place. Does GM intend to lay off perminantly or reduce the workforce with further notice of re-hire later?

[scherry2]

Quote, originally posted by Mavrik »Does GM intend to lay off perminantly or reduce the workforce with further notice of re-hire later?so far affected people in America will be able to flow into other GM factories in other states. I don't know about Canada though since they are CAW.

[Mavrik]

well I know people at the CAMI plant in Ingersoll a couple years ago were laid off on a temp bases with pay then when the place retooled for production of other vehicles, they were all hired back. Hopefully people at the effected places can filter into other GM outlets in the area. But there won't be much in the area after this.

[Houston]

Quote, originally posted by Mavrik »Hopefully people at the effected places can filter into other GM outlets in the area. But there won't be much in the area after this.You got that right. Flint, Michigan used to have somewhere between 60 to 80 thousand GM workers, but there are only a few thousand left.

[jasonvibe]

Having had my pay hardly going up for a few years. Unable to change jobs for personal reasons and having to find a reliable, practicle family car. Thus the Vibe. If GM increased their practicality and especially long term reliability. People would be buying more. GM white colors are too removed from reality. The stuffed shirts make the big calls. Thus the current failings. I feel for every one.