GM to cut 15% of salaried workforce, close 5 North American plants

[essentialsaltes]

LINK

While this is a huge blow to these workers, it's also interesting to see how GM sees the transformation of its industry.

GM's new motto is "Zero Crashes, Zero Emissions, Zero Congestion," signaling a shift to self-driving, electric vehicles. But the restructuring is also about making cars people want now. Customers are increasingly shunning sedans in favor of SUVs and hatchbacks.

GM said it would shut operations at plants in Detroit; Oshawa, Ontario; Warren, Ohio; White Marsh, Maryland; and Warren, Michigan. The plants made sedans that have waned in popularity, including the Chevrolet Volt, Impala and Cruze, the Buick LaCrosse, and the Cadillac CT6 and XTS. GM said it will no longer make those cars.

 

[iluvatar5150]

Oh nice. I didn't know there was a plant up here near Baltimore. I'm sure that'll be good for the harbor business, too.

 

[essentialsaltes]

Trump told reporters he was not happy with GM’s decision to idle a plant in Lordstown, Ohio.

“I have no doubt that in the not too distant future, they’ll put something else. They better put something else in,” Trump said.

In July 2017, Trump made a speech in Youngstown, Ohio near the GM plant and vowed jobs were “all coming back.” He told local residents: “Don’t move. Don’t sell your house.”

 

[Trogdor the Burninator]

Trump told reporters he was not happy with GM’s decision to idle a plant in Lordstown, Ohio.

“I have no doubt that in the not too distant future, they’ll put something else. They better put something else in,” Trump said.

In July 2017, Trump made a speech in Youngstown, Ohio near the GM plant and vowed jobs were “all coming back.” He told local residents: “Don’t move. Don’t sell your house.”

I guess Trump hasn't bothered to acquaint himself with the fact that GM's second biggest market is China. Given how badly GM is doing in the rest of the (non-US) world, Trump might want to be a little more cautious in his dealings with China if he wants that plant to open again.

 

[wing2000]

....creating value for share holders, not workers....and there is nothing Trump can do about that...

https://www.washingtonpost.com/busi...ry-capital-over-labor/?utm_term=.a28ed1c44462

 

[Aryeh Jay]

I am happy to see the plant close and to find out that the Blazer manufacturing is moving to Mexico. I lost my job to cheap labor in the Philippines because of Trump and I want more US Workers to feel the pinch, perhaps that will show them what they really voted for.

 

[TLK Valentine]

Trump told reporters he was not happy with GM’s decision to idle a plant in Lordstown, Ohio.

“I have no doubt that in the not too distant future, they’ll put something else. They better put something else in,” Trump said.

In July 2017, Trump made a speech in Youngstown, Ohio near the GM plant and vowed jobs were “all coming back.” He told local residents: “Don’t move. Don’t sell your house.”

Oh, Donald... still peddling the same ol' snake oil...

 

[dgiharris]

Oh, Donald... still peddling the same ol' snake oil...

Why not, it sells by the barrel and demand is through the roof!!! It is so cheap and easy to produce.
Talk about a healthy profit margin!

 

[pgp_protector]

Isn't current car production something like 1 car for Every 100 people in the world every year?

Can part of the problem be that we're just making too many cars?

 

[essentialsaltes]

Can part of the problem be that we're just making too many cars?

That could be. From that perspective, yes, GM is making a rational decision to stop or reduce manufacturing cars that won't be sold. (But GM would be much happier if their competitors were the ones who had to shrink their businesses. Sadly for GM, their competitors are presumably doing a better job on the selling part of things.)

 

[variant]

Isn't current car production something like 1 car for Every 100 people in the world every year?

Can part of the problem be that we're just making too many cars?

Part of GM's problem is that they have lost 1 billion dollars to tariffs that made their cars more expensive in china where they were growing and also raised the price of steel and aluminium at the same time.

Bloomberg - Are you a robot?

 

[RestoreTheJoy]

That could be. From that perspective, yes, GM is making a rational decision to stop or reduce manufacturing cars that won't be sold. (But GM would be much happier if their competitors were the ones who had to shrink their businesses. Sadly for GM, their competitors are presumably doing a better job on the selling part of things.)

Right. But it's being spun as Trump's fault by the element that blames him for EVERYTHING that has ever happened anywhere. People just don't want sedans today.

 

[KCfromNC]

Right. But it's being spun as Trump's fault by the element that blames him for EVERYTHING that has ever happened anywhere. People just don't want sedans today.

If someone is going to promote themselves because unemployment is low, they shouldn't be surprised when people associate unemployment with their list of responsibilities.

 

[essentialsaltes]

Right. But it's being spun as Trump's fault by the element that blames him for EVERYTHING that has ever happened anywhere.

Well, his tariffs on steel and his trade war with China have not helped GM (while, say, Japanese competitors are largely unaffected by Trump in the global market). But this is more of a broken promise, as the Rust Belt is increasingly finding out.

 

[FenderTL5]

....creating value for share holders, not workers..

IMHO, anyone that expected the Trump Administration to not favor shareholders was terribly deceived.

 

[TLK Valentine]

Right. But it's being spun as Trump's fault by the element that blames him for EVERYTHING that has ever happened anywhere. People just don't want sedans today.

Logic would dictate that the man who claims the lion's share of credit for EVERYTHING that has ever gone right anywhere should accept at least a small portion of the responsibility when those very same things go sideways.

 

[Trogdor the Burninator]

Sadly for GM, their competitors are presumably doing a better job on the selling part of things.)

Fundamentally, GM only knows how to sell trucks to Americans and (to a certain extent) cars to Mainland Chinese. They have mostly botched every other attempt in recent years to maintain share in other markets. After decades of messing around with Saab, Vauxhall and Opel, they gave up and now have essentially zero sales in Europe. Chevrolet pulled out of Europe a few years back, along with most of Africa.

In Australia, they closed down Holden's local production and sales have so far fallen by 40%. In Singapore, (one of the world's most open car markets) for the second half of 2018 to date , Chevrolet has sold just 1 car.

 

[iluvatar5150]

Fundamentally, GM only knows how to sell trucks to Americans and (to a certain extent) cars to Mainland Chinese. They have mostly botched every other attempt in recent years to maintain share in other markets.

What is it with American car companies constantly screwing around with different model names? I've never heard of probably 1/3 of GM's current lineup. It's like the concept of branding is entirely foreign to them.

 

[Trogdor the Burninator]

What is it with American car companies constantly screwing around with different model names? I've never heard of probably 1/3 of GM's current lineup. It's like the concept of branding is entirely foreign to them.

They're not alone though. I remember when the Nissan Pulsar was one of the biggest selling small cars here. Had been for decades. Then head office in Japan decreed that it should be renamed the Tiida to match the brand in other countries - sales plummeted. Eventually, logic prevailed and it was changed back to the Pulsar, but the damage was done and they eventually stopped selling it here.

Meanwhile Toyota, whose head office had been pushing the local branch to rebadge the Corolla as the Auris (for the same reason) pointed at Nissan and said "see - that's what happens when you mess with a proven brand". Management saw sense and relented, and the Corolla is still sold here to this day.

 

[Yekcidmij]

Right. But it's being spun as Trump's fault by the element that blames him for EVERYTHING that has ever happened anywhere. People just don't want sedans today.

People just don't want sedans today at today's prices, and sale prices are a function, at least in part, of input costs. Input costs have been affected, at least to some degree, by tariffs. Maybe GM would lower prices on Sedans if they could, but they're unable because they would be selling at a loss due to increased costs?

I'll buy a thousand new sedans if they cost $1. I won't buy one if it costs $60K.