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Old 05-29-2009, 10:45 PM   #1
BigElm
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Default GM Officially Says It Will Build A Small Car At U.S. Plant

GM Officially Says It Will Build A Small Car At U.S. Plant
TheGMSource - General Motors and the UAW reached an agreement on a new labor deal that will go along way towards a quick bankruptcy for GM if the automaker decides to file on Monday. Today though, GM makes it official. They will build a new small car in the United States.
The news leaked last week after talks with the UAW and GM had ended. The UAW previously said GM should not use taxpayer dollars to ship jobs overseas. This came as GM said it planned to import small cars from China as part of its restructuring.
Josh E. Oliver
JOliver@TheGMSource.com

GM Announces Plans to Build Small Car in U.S.
  • GM to utilize and retool idled assembly and stamping facility for future production.
  • Additional production will help the company deliver outstanding new vehicles to the compact and small car markets and meet future fuel efficiency regulations.
DETROIT, Mich. -- General Motors Corporation (NYSE:GM) announced today it plans to build a future small car in the United States utilizing an idled UAW-GM facility. This vehicle adds to GM's growing portfolio of U.S.-built, highly fuel efficient cars including the Chevrolet Cruze and Volt.
"Small cars represent one of the fastest growing segments in both the U.S. and around the world," said Fritz Henderson, General Motors President and CEO. "We believe this car will be a winner with our current and future customers in the U.S."

The re-tooled plant will be capable of building 160,000 cars annually, which can be a combination of both small and compact vehicles. Selection of the site will be determined in the future.

"I would like to personally thank the UAW for agreeing to work with us to ensure our overall manufacturing competitiveness in the United States," said Henderson. "This vehicle segment, while important today and expected to be more so in the future, is extremely challenging. It takes a special effort by everyone to bring a domestically produced small car to market in a cost-competitive and profitable way - but that is what we are going to do together."

GM already has a strong manufacturing presence in the United States. Currently, about 67 percent of GM cars and trucks sold in the U.S. are built in the U.S. With this announcement, GM anticipates that U.S. production levels will increase beyond 70 percent by 2013, augmenting its already automotive industry-leading U.S. manufacturing footprint.
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Old 05-29-2009, 11:02 PM   #2
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This is good news. I like what I'm seeing from GM but the proof will be in the pudding once the BK goes through.
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Old 05-29-2009, 11:29 PM   #3
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this came out yesterday I believe, but I think GM is just doing this to pacify critics who raise the point that GM appears to be pumping the bailout money into it's Chinese operations, instead of funneling it into the US.

Until yesterday, they were going to build all their small cars in China and then ship them over here. Now they will build just one line of the cars in the US, while the rest are still being constructed in China.

I do find it interesting that GM never asked for bailout money from China though..
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Old 05-30-2009, 02:57 AM   #4
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^^
China raised their CAFE to 42.2 MPG yesterday..
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Old 05-30-2009, 03:26 AM   #5
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I think the green hatchback looks cool.

Sad that they have to move the jobs but the unions don't seem to be making it any easier.
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Old 05-30-2009, 03:26 AM   #6
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Oh on side note I hope their quality doesn't get worse with the factories in China...
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Old 05-30-2009, 07:44 AM   #7
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So a small car plant in the US filled with union employees. Great... those small cars are going to cost a mint.
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Old 05-30-2009, 07:10 PM   #8
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So a small car plant in the US filled with union employees. Great... those small cars are going to cost a mint.
Yeah but that what happens to cars that are shipped overseas. The rest of the world in which these cars will be sold in will pay the premium. Although the article does say future U.S. customers. We won't see these cars in a U.S. showroom. The future in which we will see these here is when they need to be bailed out again after years of not giving us this car.
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Old 05-30-2009, 10:06 PM   #9
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So a small car plant in the US filled with union employees. Great... those small cars are going to cost a mint.
Name one car that costs more then it's supposed to because of union employees.
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Old 05-31-2009, 07:57 AM   #10
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Name one car that costs more then it's supposed to because of union employees.
Volkswagen Anything Built in Germany.

Of course you were looking for a US example. In the US they just decontent the car instead to make up for the price of labor...
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Old 05-31-2009, 08:08 AM   #11
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DING DING... and use inferior materials, design, fit and finish, and quality. So sure, unions don't make them cost more, but they do eat away at every other aspect of a car.

AND you know that to be true.

Tell you what, flip it around Eyeflyistheeye...

Name one thing that the unions do to lower the price of a car....... I just wait here for the answer.
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Old 05-31-2009, 08:52 AM   #12
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Originally Posted by SCRAPPYDO View Post
DING DING... and use inferior materials, design, fit and finish, and quality. So sure, unions don't make them cost more, but they do eat away at every other aspect of a car.

AND you know that to be true.

Tell you what, flip it around Eyeflyistheeye...

Name one thing that the unions do to lower the price of a car....... I just wait here for the answer.
im a union member in sanitation and i cant answer that one. i get payed good though.

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Old 05-31-2009, 02:17 PM   #13
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So a small car plant in the US filled with union employees. Great... those small cars are going to cost a mint.
Contrary to what you think, unions are not the root of all evil.

If you paid GM employees less than what they currently make, you think GM's product quality will improve?

Try and leave your hatred for unions out of the answer.

Last edited by Skylab; 05-31-2009 at 02:24 PM.
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Old 05-31-2009, 02:22 PM   #14
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Don't get your hopes up...

Quote:
General Motors on Sunday continued its seemingly inevitable march into bankruptcy court after clearing a major hurdle by getting bondholders to agreed to a debt exchange that gave them a bigger stake in the new company.

The company is expected to file bankruptcy on Monday, the deadline set by the Obama administration to submit a viable revival plan or seek court protection.
http://www.nytimes.com/2009/06/01/bu...ef=global-home
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Old 05-31-2009, 02:23 PM   #15
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thats beside the point. their salary is up where it is because of the crooked unions. lowering their standard now would set everything up better down the road. if they want to keep their jobs they will just have to adjust to what they should be making to begin with.
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Old 05-31-2009, 02:29 PM   #16
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thats beside the point. their salary is up where it is because of the crooked unions. lowering their standard now would set everything up better down the road. if they want to keep their jobs they will just have to adjust to what they should be making to begin with.
I believe it's called capitalism. Unions do it, just like the companies do. Workers are there to make the most money they can, but that's not okay?

You blame the unions, yet GM agreed to have a contract with the UAW so they could build cars.

It is possible to break a union. They'd have to shut down for so many days, then open up all non-union.

Does anyone research this stuff?

I'm in a union, and I'll be the last person to tell you I like it. But it has it's benefits. And there are plenty of lazy-ass people I work with.
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Old 05-31-2009, 06:18 PM   #17
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Oh god, those cars are too cute. When you turn the ignition does it play a .mp3 of a baby giggling?
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Old 05-31-2009, 06:34 PM   #18
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So a small car plant in the US filled with union employees. Great... those small cars are going to cost a mint.
Perhaps to a degree, it'll probably just mean lower quality cars (less r&d/engineering, lower quality parts and materials, etc.) compared to the Japanese competition as usual. They have to make up for the excessive labor cost somewhere.

Edit: oops, I guess I didn't read down far enough before I posted; you already covered this
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Old 05-31-2009, 06:40 PM   #19
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Contrary to what you think, unions are not the root of all evil.

If you paid GM employees less than what they currently make, you think GM's product quality will improve?

Try and leave your hatred for unions out of the answer.
Uh.. yes? The QA doesn't change, the tools/procedures don't change, but the money saved can go to improving the quality of materials/design which everyone thinks is so poor.

To put it another way, people always say that GM's cars are worse than say, Toyota's, in terms of quality. How can you expect GM to make a car of superior quality to said Toyota, when it costs them more money to make a car of the same quality because they are paying more for labor?

Even if you can refute all that, the fact still remains that even if quality didn't improve, they'd still be making larger profit margins by cutting costs on labor. Which means there's more capital in the budget to spend on design/R&D/better tooling/better materials to eventually improve the next model. So yes, quality should improve, so long as GM turns an eye to it and actually decides to improve it..
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Old 05-31-2009, 07:04 PM   #20
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I think if GM cars were built in the US we would have better cars overall. One of my co-workers visited a Toyota plant last month and he said everyone is a union employee and everyone gets paid the same wage 27$ an hour. I dont see Toyota crying about union labor being to high. Also Toyota car's seem to be holding up well on the road, so why blame union's for all problems with the Auto Industry ?
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Old 05-31-2009, 10:41 PM   #21
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^
Agree with the above. I think what is bad for GM though, is that the cars pictured above were unveiled as concepts years ago, and will be years from now if they ever make them. Just like the Camaro, they take so long to finally get the damn thing into production, people probably go to other auto makers and buy something similar.

In other words, GM still doesn't have a good small car segment of the market.
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Old 06-01-2009, 12:10 AM   #22
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I think if GM cars were built in the US we would have better cars overall. One of my co-workers visited a Toyota plant last month and he said everyone is a union employee and everyone gets paid the same wage 27$ an hour. I dont see Toyota crying about union labor being to high. Also Toyota car's seem to be holding up well on the road, so why blame union's for all problems with the Auto Industry ?
Although everytime a GM thread gets made, the topic of UAW is inevitable... I will say this.... All unions are not bad, but those involved in the auto industry have affected GM's potential. Toyota's union labor costs may be at $27/hr. but GM's is double that amount/hr. GM has already admitted their fault of cutting corners on quality due to high labor costs. UAW has to agree to lower labor costs or get the boot. GM will give UAW the option to get it right but now the time has come where UAW no longer has GM by the balls! UAW can agree with GM's request or have many union workers looking for a job elsewhere.

Come on people... this has been beaten to death. UAW is not to blame for all the problems, but they do have a significant amount of blame. Let's just hope, for the sake of employment, that the union workers take their jobs more seriously... the days of slacking off and getting away with it are gone!
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Old 06-01-2009, 07:44 AM   #23
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Agreed Big Elm. Its just we have the same two sides to the party...we have the die hard union defenders on one side, who refuse to see the light, and we have the UAW is the devil people on the other side. Both of these sides quote half truths to some degree and they end up dead headed. When the truth is that the unions are not entirely at fault for GM's problems, but had a large hand in it. You cannot turn your head at waste and mismanagement up top either.

But I think everybody can agree that a new day is dawning where the unions will have to 'come to reality' so to speak or become extinct. I pray that the new CEO of GM has seen the errors of leaving unions power unchecked and when the new GM rises, it will be a company where the tail does not wag the dog. And both sides can rely on each other to keep the companies interest in mind, versus their own.
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Old 06-01-2009, 08:33 AM   #24
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GM already has a strong manufacturing presence in the United States. Currently, about 67 percent of GM cars and trucks sold in the U.S. are built in the U.S. With this announcement, GM anticipates that U.S. production levels will increase beyond 70 percent by 2013, augmenting its already automotive industry-leading U.S. manufacturing footprint.

That doesn't sound right. I think is it 67 percent in North America. There is no way it is that high in the US.

You can restructure your assoff, if people do not change or are not removed what makes you think it will be any different. I do not see many of the people that mis-managed GM into this getting booted.

Chrysler is going to have 55% of it's stock owned by the UAW. Tell me that is a good move......

Peace,

Greg
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Old 06-01-2009, 02:32 PM   #25
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I am still waiting for what the unions have ever done to lower the price of the cars sold?
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