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Old 11-26-2018, 11:36 AM   #1
banyan
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News General Motors to close Detroit, Ohio, Canada plants

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General Motors will close three assembly plants by the end of 2019, it said Thursday, including Detroit-Hamtramck, Lordstown in Ohio and Oshawa in Ontario.

Approximately 5,600 jobs are at stake: roughly 1,500 in Hamtramck; 1,600 in Lordstown; and about 2,500 in Oshawa.

The Hamtramck plant makes the Chevrolet Volt and Impala, the Cadillac CT6 and the Buick LaCrosse.

"GM is continuing to take proactive steps to improve overall business performance, including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce," the company said in a news release.

“We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success,” said GM Chairman and CEO Mary Barra.

The report comes amid aggressive cost-cutting from the Detroit carmaker, which had a deadline last week for North American salaried workers who had at least 12 years with the company to accept a voluntary buyout offer. The Free Press reported that the company hoped to trim 7,000 white-collar jobs and has said it could move ahead with involuntary cuts if the number of workers stepping forward falls short.

“For the first time in my memory, GM is leading the pack on tangible restructuring actions, and the dominoes are really starting to fall," Jon Gabrielsen, an independent adviser to the auto industry. "This may not be the last plant closure for GM, and we have not yet seen Ford and FCA show their hands.”

While Ford is trimming its global white-collar workforce, it has said nothing about plant closures.

Auto sales hit record levels in 2016 and are slowing as automakers say they face challenges from both the slowing sales and tariffs on steel and aluminum as part of President Donald Trump's trade war.

Like other automakers, GM is moving away from sedans to a lineup more focused on SUVs and trucks.

"GM now intends to prioritize future vehicle investments in its next-generation battery-electric architectures. As the current vehicle portfolio is optimized, it is expected that more than 75 percent of GM’s global sales volume will come from five vehicle architectures by early next decade," the release said.

Workers at GM's U.S. plants, particularly in Lordstown, have been concerned about production cuts. GM makes the Cruze sedan in Lordstown.

GM makes the Chevrolet Impala and Cadillac XTS cars and Chevrolet Silverado and GMC Sierra pickup trucks in Oshawa, according to its website.

Oshawa's outgoing mayor, John Henry, tweeted Sunday night that he was "utterly heartbroken" by the news. "No one in Oshawa or our region is unaffected by these reports and the devastating announcement we hear is coming tomorrow morning."

Bloomberg noted that "production in Oshawa and other car centers near Toronto has dwindled in the last few decades as more North American production shifted to lower-cost centers in Mexico and the U.S."

GM said it also is closing a propulsion plant in Baltimore and transmission plant in Warren. It said earlier this month that it would move Pontiac propulsion workers to the Tech Center in Warren. It also is moving Cadillac headquarters back to the Detroit area — near the Warren center — from New York.

https://www.freep.com/story/money/ca...re/2112539002/
Quote:
GM plans to halt production at three assembly plants in Canada, in Ohio and Michigan in the United States by not allocating new products, putting the future of those plants in doubt, the sources added.

The plants, Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly and Oshawa Assembly, all build slow-selling cars.

The issue will be addressed in talks with the United Auto Workers union next year. GM Chief Executive Officer Mary Barra made calls early on Monday to disclose the plans, the sources said.

GM declined to comment ahead of an expected announcement. Its shares were up slightly at $36.21 in early trading.

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GM is expected to announce it will cut the Chevrolet Volt, Impala and Cruze, the Cadillac CT6 and XTS, and the Buick LaCrosse, according to a source familiar with GM’s plans.

Cost pressures on GM and other automakers and suppliers have increased as demand waned for traditional sedans. The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.

A Canadian union, Unifor, which represents most unionized auto workers in Canada, said Sunday it was informed by GM that there would be no product allocated to the plant in Oshawa, about 37 miles (60 km) from Toronto, after December 2019.

GM employs about 2,500 union staff in Oshawa, which produces both the Chevrolet Impala and Cadillac XTS sedans. It also completes final assembly of the stronger-selling Silverado and Sierra pickup trucks, shipped from Indiana.

GM has begun what is expected to be a long and expensive transition to a new model that embraces electrified and automated vehicles, many of which will be shared rather than owned.

The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America, with the aim of reducing headcount by 18,000. It plans to trim executive ranks by 25 percent, the source said.

With U.S. car sales lagging, several car plants have fallen to just one shift, including its Hamtramck and Lordstown, assembly plant.

A rule of thumb for the automotive industry is that if a plant is running below 80 percent of production capacity, it is losing money. GM has several plants running well below that. Consultancy LMC estimates that Lordstown will operate at just 31 percent of production capacity in 2018.

Rivals Ford Motor Co and Fiat Chrysler Automobiles NV have both curtailed U.S. car production. Ford said in April it planned to stop building nearly all cars in North America.

https://www.reuters.com/article/us-g...KCN1NV1NB?il=0

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Old 11-26-2018, 12:26 PM   #2
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cruze impala lacross, good riddance.....Maybe just crappy sedans are dying off. LOL...

wait, just reread the article..

so we start building silverados here, and then ship them to canada to be finished...

Wow.... and who thought that was a good idea.
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Old 11-26-2018, 04:22 PM   #3
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People need to put car sales in perspective. There was this thing called a "recession" that hit us hard in the US. Many people put off buying new vehicles from roughly 2008 until roughly 2013 or so. Since 2014 new car sales in the US have been very strong with 2015-2016 being the strongest years ever in the US.

So yeah at some point I would expect new car sales to level off, and somewhat decrease because there was a period of pent up demand. New cars are also much more expensive now than they were 10 years ago relative to income levels.

I am not surprised to see demand dropping and manufacturers cutting back . They should. The last thing GM needs is tens of thousands of unsold cars that they have to offer crazy rebates on.

But the sky is not falling and the new car/vehicle market is still very strong in the US.
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Old 11-27-2018, 12:06 AM   #4
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Old 11-27-2018, 01:44 PM   #5
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So while larger companies continue to cut sedans, Subaru continues ahead with Impreza sedans, the Legacy, and sedan-only WRX and STI, which all either had or currently have 5-door variants...

Makes sense.
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Old 11-27-2018, 02:31 PM   #6
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Quote:
Originally Posted by SCRAPPYDO View Post
I am quite sure this was going on long before the NAFTA 2.0 was done a little over a month ago. nice try though.
The blazer is being manufactured in Mexico. New tax bill is 22% tax on production in the US. There is incentive to manufacture off shores with an effective tax rate of 0-15%, bet you didnít know that.
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Old 11-27-2018, 11:17 PM   #7
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Originally Posted by Pre View Post
Politicians who put the country and itsí people before partisan bs. Politicians who try to work across the aisle and understand the job is a job of compromise. And I disagree the last politician who was a moderate was JFK. Thatís actually
Snoop around Pat Buchanan and his ideologies and the reform party. Youíll find your Trump. Heís nothing new nor an anomaly. Heís just a better salesman.
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Old 11-27-2018, 11:33 PM   #8
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It would be crazy if GM did the same thing as before...and we bailed them out yet again. Then they would have another buffer to hold them over while they attempt another strategy for electric.









IBGMwouldneverdosuchathing
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Old 11-28-2018, 01:23 AM   #9
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Let GM die already. Quit making garbage.
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Old 11-28-2018, 02:05 AM   #10
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America's love for trucks, SUVs, and CUVs strike again. Cede the car market to the imports and pray your gamble pays off in the future.
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Old 11-28-2018, 10:30 AM   #11
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Originally Posted by hi5.0 View Post
America's love for trucks, SUVs, and CUVs strike again. Cede the car market to the imports and pray your gamble pays off in the future.
That would be the smart move. Our mechanic in CA (who was very experienced with GM engines) absolutely despised GM passenger engines, but liked the engines in their trucks & SUVs. Chevy's Ecotech motors are utter garbage.

My wife comes from a devoted GM family, but she was so frustrated with all the issues that came from her 2010 Malibu (which had zero resemblance in reliability and durability that she'd come to expect from her family's past experiences with GM vehicles) that she is happily in the Subaru camp. Loves her Outback.
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Old 11-28-2018, 03:55 PM   #12
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Let GM die already. Quit making garbage.
Quiet you, I want a ATS-V


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Production of the lauded, high-performance Cadillac CTS-V and Cadillac ATS-V will cease this winter

WHAT!
Screw them, let them die off
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Old 11-29-2018, 04:58 PM   #13
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Originally Posted by godfather2112 View Post
The blazer is being manufactured in Mexico. New tax bill is 22% tax on production in the US. There is incentive to manufacture off shores with an effective tax rate of 0-15%, bet you didn’t know that.
Do you have a source for this? The new Blazer is on the C1 platform. The Acadia, Traverse, Enclave/Avenir and XT5 all come out of Spring Hill, TN. Are they building all Blazers in Mexico, or just additional volume of the entire C1 lineup?

Last edited by godfather2112; 11-30-2018 at 09:04 AM.
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Old 11-30-2018, 12:33 AM   #14
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Old 11-30-2018, 09:07 AM   #15
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At the request of a few, I have deleted a lot of posts containing anything close to being political. We have OT / PP for that, lets not turd of up this subforum.

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Originally Posted by Scooby921 View Post
Do you have a source for this? The new Blazer is on the C1 platform. The Acadia, Traverse, Enclave/Avenir and XT5 all come out of Spring Hill, TN. Are they building all Blazers in Mexico, or just additional volume of the entire C1 lineup?
https://money.cnn.com/2018/06/22/new...ico/index.html
http://gmauthority.com/blog/2018/06/...ilt-in-mexico/
https://carbuzz.com/news/the-all-ame...uilt-in-mexico
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Old 11-30-2018, 09:34 AM   #16
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Ok, so it is a capacity issue. Thanks!
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