GM to Cut 30,000 Jobs, Close 9 Plants

[Bronco_Beerslug]

How long before American automakers take away their workers pensions too, like the airlines are doing?

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By DEE-ANN DURBIN, AP Auto Writer 8 minutes ago

DETROIT - General Motors Corp. announced plans Monday to cut 30,000 manufacturing jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand.

Rick Wagoner, chairman and CEO of the world's largest automaker, announced the closures during a speech to employees from GM's Detroit headquarters before the financial markets opened.
http://tinyurl.com/9lxfo

[Mile High Shack]

Originally Posted by Bronco_Beerslug

How long before American automakers take away their workers pensions too, like the airlines are doing?

--------------------------------------------------------------
By DEE-ANN DURBIN, AP Auto Writer 8 minutes ago

DETROIT - General Motors Corp. announced plans Monday to cut 30,000 manufacturing jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand.

Rick Wagoner, chairman and CEO of the world's largest automaker, announced the closures during a speech to employees from GM's Detroit headquarters before the financial markets opened.
http://tinyurl.com/9lxfo

to be fair

those pensions that were negotiated for by the union many years ago were pretty stupid, the company didn't have the foresight to see how much it was going to actually cost them

[Bronco_Beerslug]

Originally Posted by Mile High Shack

to be fair

those pensions that were negotiated for by the union many years ago were pretty stupid, the company didn't have the foresight to see how much it was going to actually cost them

To be even fairer, and put the blame where most of it belongs, GM isn't producing products people are buying. If they were (like Honda and Toyota are) they wouldn't be putting Americans out on the street.

"part of an effort to get production in line with demand."

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NEW YORK (Reuters) - General Motors Corp. (NYSE:GM - news) said on Monday it will cut about 30,000 jobs or 9 percent of its total work force, close or curtail operations at 12 plants in North America and slash the amount of vehicles it produces by 1 million as it attempts to reduce costs by $7 billion.
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The company warned that it will need to take a "significant restructuring charge" associated with this plan, but did not spell out how large a charge it would be or when it would be taken.

GM Chief Executive Rick Wagoner said he was not prepared to discuss the company's 2006 profit outlook.

"Fundamentally, if you look at our liquidity structure, we're on very sound financial footing," he said.

The plants affected include those in Doraville, Georgia; an Oklahoma City plant that makes mid-size SUVs; plants in Ontario, Canada, Pittsburgh and Portland, Oregon; and its Lansing, Michigan Craft Center which makes a pickup truck.

Wagoner earlier this year said he planned to cut manufacturing capacity to match demand by 2008.

"It's a big move ... We're confident that this is what it's going to take to get us going," Wagoner said at a press conference in Detroit.

GM said it hoped to be able to achieve many of these cuts through attrition and early retirement programs.

The troubled automaker also said an agreement with the
United Auto Workers union will allow it to cut employee health care costs by about $3 billion annually.

In premarket trading on the Inet electronic trading platform, General Motors shares were up 87 cents at $24.92. The auto giant has lost nearly $4 billion this year, while its shares have lost more than 40 percent of their value and hit a 14-year low last week.

The new closings are in addition to the three assembly plants that GM has already closed or stopped production at this year: a car plant in Lansing, Michigan; an SUV plant in Linden, New Jersey; and a van plant in Baltimore.

Wagoner said it has informed the UAW leadership of the moves, calling it "tough medicine for us and it's tough medicine for everyone involved."

GM has been grappling with high health-care and commodities costs, loss of U.S. market share to foreign rivals, and slumping sales of large sport utility vehicles that used to be its profit centers, but have now lost popularity due to high gasoline prices.

To make matters worse, GM's main parts supplier -- bankrupt Delphi Corp. (Other OTCPHIQ - news) -- is battling with its unions and will ask the court to void its labor contracts if a deal is not reached by mid-December. A strike at Delphi could shut down some GM and Delphi plants and could force the automaker to burn through billions of dollars a week, analysts have said.
http://tinyurl.com/c2a94

[Rascal]

When your company sucks unfortunately the workers often pay. Welcome to a capitilistic society.

They have one here in OKC that they are closing (supposedly in January of 06!) and it has a lot of people scrambling. I know the unions were suprised by this.

[El Guapo]

Originally Posted by Bronco_Beerslug

To be even fairer, and put the blame where most of it belongs, GM isn't producing products people are buying. If they were (like Honda and Toyota are) they wouldn't be putting Americans out on the street.

really? is that why the pontiac solstice is back ordered for 2 years? Or google the saturn sky that is coming out next year. Cadillac is doing well, and chevy is coming out with a total of 20 new vehicles (redesigned) after next year is up.

go to the pontiac site and check out those cars. hot stuff (gto, g6, solstice, torrent - all sweet rides).

two of GM's products are in the top 5 of JD Powers overall quality index. read this article.

http://money.cnn.com/2005/05/18/Autos/quality_study/

General Motors also made a strong showing, placing five models at the top of their section including the Chevrolet Malibu/Malibu Maxx (Entry Midsize Car), Buick Century (Premium Midsize Car) and Chevrolet Suburban (Full-Size SUV).

the deal is, americans need to buy american products.

[W*GS]

Plus, the global auto industry is way overcapacity - the manufacturers can make many more cars than people are willing to buy.

The industry needs to reduce capacity and consolidate.

[El Guapo]

Originally Posted by W*GS

The industry needs to reduce capacity and consolidate.

which is exactly what GM is doing, but oh no! Its the end of the world!

[W*GS]

Originally Posted by Maverick_7

the deal is, americans need to buy american products.

I'm not going to buy American-made crap just to buy American. That helps nobody.

Besides, Honda and Toyota build bejillions of cars here in the US.

[El Guapo]

Originally Posted by W*GS

I'm not going to buy American-made crap just to buy American. That helps nobody.

Besides, Honda and Toyota build bejillions of cars here in the US.

Its not crap, check out JD powers and associates quality rankings. GMs buick and cadillac are ranked 3rd and 4th, respectively (behind Lexus and Porche).

and toyotas products may be manufactured here, but its still a foreign company.

[Bronco_Beerslug]

Originally Posted by Maverick_7

really? is that why the pontiac solstice is back ordered for 2 years? Or google the saturn sky that is coming out next year. Cadillac is doing well, and chevy is coming out with a total of 20 new vehicles (redesigned) after next year is up.

go to the pontiac site and check out those cars. hot stuff (gto, g6, solstice, torrent - all sweet rides).

two of GM's products are in the top 5 of JD Powers overall quality index. read this article.

http://money.cnn.com/2005/05/18/Autos/quality_study/
the deal is, americans need to buy american products.

Sorry but GM ISN'T building cars Americans are buying or they wouldn't have the problem of ...........

General Motors Corp. announced plans Monday to cut 30,000 manufacturing jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand.

The "deal" is GM and Ford have been left in the dust by the innovative and future thinking Honda, Toyota and other car makers. No way would I buy a GM or Ford passenger car.

[El Guapo]

Originally Posted by Bronco_Beerslug

Sorry but GM ISN'T building cars Americans are buying or they wouldn't have the problem of ...........


The "deal" is GM and Ford have been left in the dust by the innovative and future thinking Honda, Toyota and other car makers. No way would I buy a GM or Ford passenger car.

your loss. The new lucerne has been ranked over the Lexus equivalent and the Toyota Avalon (flagship of toyota).

[Bronco_Beerslug]

Originally Posted by Maverick_7

your loss. The new lucerne has been ranked over the Lexus equivalent and the Toyota Avalon (flagship of toyota).

EPA estimated mpg (City/Hwy): 19/28

No thanks!!!!!

EDIT: This is another GM problem... Lucerne? What kind of name is that? Sounds like the name of some of a milk brand or some sitcom.

[El Guapo]

Originally Posted by Bronco_Beerslug

No thanks!!!!!

thats the V8, 275hp version. they do offer a v6.

not to mention every GM vehicle being produced now offers the e-85 engine (since 2004). It is capable of consuming gas that contains 85% ethanol, meaning a suv that normally gets 230 to a tank will be capable of getting 500 miles to a tank.

They're going to start marketing it in '06 when they get the ethanol heavy gas put into gas stations.

[Bronco_Beerslug]

Originally Posted by Maverick_7

thats the V8, 275hp version. they do offer a v6.

No it isn't.





http://tinyurl.com/dxysr

[bendog]

GM and Ford have the high labor costs. GM is turning out some interesting products, though. I liked our old LeSabre. Nissan quality is sucking badly as they're expanded rapidly, but their new Frontier PU looks pretty good. Toyota Tacoma is of course the standard. Ford's survival may hang on the new replacement for the Taurus. That 100 sedan looks OK, but not my cup of tea.

[alkemical]

Originally Posted by Maverick_7

Its not crap, check out JD powers and associates quality rankings. GMs buick and cadillac are ranked 3rd and 4th, respectively (behind Lexus and Porche).

and toyotas products may be manufactured here, but its still a foreign company.

Well when alot of GM's production and manufacturing are done in canada and mexico, how american are they?

[bendog]

I don't understand the US/Japan car thing. If an American worker helps make the truck, I'm ok with it. I doubt the multinationals and Carlyle buying stakes in Chinese maftring firms give a crap about American workers.

[alkemical]

I'm with you bendog - if i buy an accord, and it's made in kentucky - where as if i buy a G6 and it's assembled and made in canada and mexico..... Whom does it benifit more?

I am willing to bet that america's largest company GE has lots of it's workforce outside of the US.

[Billy Clyde Puckett]

Originally Posted by W*GS

I'm not going to buy American-made crap just to buy American. That helps nobody.

Besides, Honda and Toyota build bejillions of cars here in the US.

There is a consulting company called Harbour Group who does nothing but study auto manufacturing efficiency and quality. They are paid by all of the auto manufacutrers and have access to all dealer records as well as manuafacturing records of all companies. They are the only ones who can give a completely objective assessment of quality records because they have facts at hand and do not depend on opinions. All other ratings are subjective. All of their studies are supposed to be top secret, but occasionally you can find something floating around the web. I have seen their assessments in the past because of my family's positions in the business, and they many times contradict conventional wisdom on quality.

They also do studies on the "psychology" of automobile owners. For instance they feel one of the reasons that Honda does well in subjective quality evaluations (not saying there is anything wrong with Honda quality) is that they typical buyer of a Honda is very meticulous and is more likely to go above and beyond when it comes to car care and preventive maintnenance.

[Billy Clyde Puckett]

Originally Posted by amesj523

I'm with you bendog - if i buy an accord, and it's made in kentucky - where as if i buy a G6 and it's assembled and made in canada and mexico..... Whom does it benifit more?

I am willing to bet that america's largest company GE has lots of it's workforce outside of the US.

And the American Auto companies own pieces of all of the Japanese auto companies.

People need to understand we are now a world economy. The US and the rest of the industrialized countries will never be isolated again like they were before WW2.

[alkemical]

Originally Posted by Big Guy

There is a consulting company called Harbour Group who does nothing but study auto manufacturing efficiency and quality. They are paid by all of the auto manufacutrers and have access to all dealer records as well as manuafacturing records of all companies. They are the only ones who can give a completely objective assessment of quality records because they have facts at hand and do not depend on opinions. All other ratings are subjective. All of their studies are supposed to be top secret, but occasionally you can find something floating around the web. I have seen their assessments in the past because of my family's positions in the business, and they many times contradict conventional wisdom on quality.

They also do studies on the "psychology" of automobile owners. For instance they feel one of the reasons that Honda does well in subjective quality evaluations (not saying there is anything wrong with Honda quality) is that they typical buyer of a Honda is very meticulous and is more likely to go above and beyond when it comes to car care and preventive maintnenance.

Well i have test driven the new chevy colorado (the s10) and it is JUNK. I'd say the tacoma and the ford small trucks are the best of the lot.....

Now when it comes to say a caddy i'd say it's on par with other cars in it's class -

But i must say that some of the best cars that GM has built, have been rebadged toyotas. (Vibe, Prizm, etc) -

[alkemical]

Originally Posted by Big Guy

And the American Auto companies own pieces of all of the Japanese auto companies.

People need to understand we are now a world economy. The US and the rest of the industrialized countries will never be isolated again like they were before WW2.

Well i know that ford couldn't buy a piece of honda because it was too expensive. So they got mazda instead.

[Billy Clyde Puckett]

Originally Posted by amesj523

Well i know that ford couldn't buy a piece of honda because it was too expensive. So they got mazda instead.

GM owns a good chunk of the assets of Toyota, Honda, and several otheres. Ford owns Mazda outright, but have been looking to dump them.

[Billy Clyde Puckett]

Originally Posted by amesj523

Well i have test driven the new chevy colorado (the s10) and it is JUNK. I'd say the tacoma and the ford small trucks are the best of the lot.....

Now when it comes to say a caddy i'd say it's on par with other cars in it's class -

But i must say that some of the best cars that GM has built, have been rebadged toyotas. (Vibe, Prizm, etc) -

That's your subjective opinion, to which you are entitled, but it does not match the objective study results.

[alkemical]

Originally Posted by Big Guy

That's your subjective opinion, to which you are entitled, but it does not match the objective study results.

Heh, it matches the studies of all the major car mags as well -