2QuickZ's

GM announces big changes to deal with higher gas prices

217 posts in this topic

WILMINGTON, Del. — General Motors Chairman Rick Wagoner on Tuesday announced sweeping changes designed to deal with a drastically changed gasoline and consumer landscape.

Speaking before the company's annual meeting in Wilmington, Del., he said the change in the U.S. market to smaller vehicles is likely permanent.

"We at GM don't think this is a spike or a temporary shift," Wagoner said.

Among the changes GM will make beginning this year, the company will:

• Put the Chevrolet Volt plug-in electric car into production by 2010.

• Build a new small car in Lordstown, Ohio, in mid-2010 and a new 1.4 liter turbo engine in Flint, Mich. .

• Consider selling its Hummer division.

• Add third shifts at a plant in Orion Township, Mich., that makes the Chevrolet Malibu and the Pontiac G6, and a plant in Lordstown, Ohio, that builds the Chevrolet Cobalt and the Pontiac G5.

• Cease production at a full-size pickup factory in Oshawa, Ontario, stop making SUVs at factories in Moraine, Ohio, and Janesville, Wis., and stop making midsize pickups in Toluca, Mexico.

Wagoner announced the moves in response to slumping sales of pickups and SUVs brought on by high gasoline prices. He says a market shift to smaller vehicles is permanent.

The plant closings will affect about 2,500 workers at each of the four facilities, although Wagoner did not know exact numbers. Many will be able to take openings created when 19,000 more U.S. hourly workers leave later this year through early retirement and buyout offers.

He said the company has no plans to allocate products to the four plants in the future.

The moves will save the company $1 billion per year starting in 2010. Combined with previous efforts, GM will have cut costs by $15 billion a year, Wagoner said.

Link to article is Here

So two things in this article suprise me a little. One is that GM is finally admitting to themselves and the world that the shift to smaller vehicles is likely permanent. The second is that they are considering selling the Hummer brand. I think that would be great if they could dump it.

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GM needs to dump Hummer and put that money into Pontiac/Buick/GMC/Saturn, All Hummer has done is make GM seem stuck in the past.

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I'm not brokenhearted about the Hummer thing, but I liked the H4 concept & looked forward to seeing it happen. Not that they've indicated that it won't, but they're certainly not going to be investing as much in a brand if they're looking to sell...

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I'm not brokenhearted about the Hummer thing, but I liked the H4 concept & looked forward to seeing it happen. Not that they've indicated that it won't, but they're certainly not going to be investing as much in a brand if they're looking to sell...

+1

I was looking forward to the return of the true 2-door SUV.

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isn't oshawa one, if not the best plant in GM's arsenal?

It cost GM to much to build in Canada now, I'd expect more Canadian jobs to move south, to the USA or Mexico.

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:( Sorry but I disagree with the sell of Hummer, Again, small brain short term instant gratification of profits in the thinking of selling HUMMER! When will american companies learn from Demming and Drucker? They finally were forced to learn about quality and still they have not learned the long term lesson about visionary thinking.

Yes you all can flame me if you want, but while I agree the over all shift is to smaller auto's, there is a market and will continue to be a market for the Hummer type products. They have missed out by not adding the diesel into the H2 sooner. A company in Colorado will sell you a new H2 with the Duramax and 6speed allison tranny and it gets mid 20's for milage. I know a lot of people that would buy this. Same with the H3, the 5 cyclinder engine was a joke, the V8 finally gave it a proper engine and if they would move a bit faster and put the new 4.8 diesel in the H3 it can be a home run hit.

Hummer should have been merged into the cadillac dealerships from day one. Just like GMC, Buick and Pontiac should be one dealership and eventually you can merge it into just one name plate and dump 2 of the 3 names.

We all need to admit it that GM has been long in the tooth for change and that there is TOO MANY name plates, but this could best be cleared up by simplifing the brands to just a few and merge the few excellent products into those few name plates to have them be successful.

Realisticly I think we could see just Cheverolet, GMC, Saturn and Cadillac.

My thoughts on this. Cut the middle management fat, wasted marketing dollars and stream line everything to allow a 4 tear product plan.

My thoughts and I am sticking to it. After all, I love all my Vehicles that I own:

2008 H2

2006 Escalade ESV Platinum

2005 CTS

2004 SRX

1994 GMC Suburban SLR

GO GM!!! :jump:

Edited by dfelt
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It cost GM to much to build in Canada now, I'd expect more Canadian jobs to move south, to the USA or Mexico.

now ya. but how about when the USD goes back up? not too mention the lost quality advanatges Oshawa had over other plants and the savings in healthcare dollars canada provides

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I also think that Hummer should stay! It is an image brand that just needs work. Diesels would be a great start.

The other thing GM needs to do is make room for the 4.2L I6 in more vehicles. I know as a fact they would sell lots more 6 cyl trucks if they got rid of that boat anchor of an engine they call the 4.3L V6. The 4.3L is worse on gas that my 5.3L. I have a Trailblazer with the 4.2L, it has lots of power, good towing ability, and great mileage, considering it has 4.10's. If they mated that engine with a 6 speed in an well equipped full size, in stead of a stripped down work truck, they would sell, and increase there MPG. If they sell an LTZ Malibu with a 4cyl, why not an LTZ truck with an I6?

I don't agree on only leaving Chev, Saturn, GMC, and Cadillac.

Buick has a better reputation, and history that Saturn, that's why when the award winning Aura came out, they still didn't sell like they expected. People don't know Saturn. And if Pontiac goes, so do the dreams of ever have a rear drive sedan besides Caddy.

Couldn't GM raise the GVW on their fully-loaded half tons above the limit that require mileage calculated? Call them a "heavy half" and excempt them from the totals.

With all the talk about different engines to save fuel and getting rid of V8's altogether, why couldn't they keep the V8 prestige and sound, but decrease the displacement to something like 4.0L and put a Turbo on it. Still a V8 for the enthusists like myself, but DI T/C AFM with a smaller displacement for fuel savings. Just a thoght.

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now ya. but how about when the USD goes back up? not too mention the lost quality advanatges Oshawa had over other plants and the savings in healthcare dollars canada provides

Wagoner said today at the stockholders meeting that those 4 plants that are closing will not be reopened and no new product will be assigned.

Edited by Pontiac Custom-S
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Looks like a lot of dealers, particularly PBG, will not survive the next 3 years without those high-margin P/U and SUV sales.

Also, I'll be the first one to say here that the Lambdas are the next vehicles to feel the sting of high gas prices and a tough economy. No one expects to see these darlings to drop but just wait...

So, what'll be the big seller at PBG dealers? Let's see...Sierra, Yukon, Envoy all tank...G8 doesn't get a decent start because of fuel economy concerns...Buick sedan sales keep going down...Big winner with increased production? Fleeted-out G6s. Yikes!

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Looks like a lot of dealers, particularly PBG, will not survive the next 3 years without those high-margin P/U and SUV sales.

Also, I'll be the first one to say here that the Lambdas are the next vehicles to feel the sting of high gas prices and a tough economy. No one expects to see these darlings to drop but just wait...

So, what'll be the big seller at PBG dealers? Let's see...Sierra, Yukon, Envoy all tank...G8 doesn't get a decent start because of fuel economy concerns...Buick sedan sales keep going down...Big winner with increased production? Fleeted-out G6s. Yikes!

hence vibes and G3's.

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All necessary moves I feel. The Trailblazer is a relic from a bygone era, and they were right to not put any money into it. It's amazing how fast the GMT-900s fell, but the car-based pickup move will finally move the segment forward. Also, he didn't say they would sell HUMMER for sure, he said they would investigate whether to sell it or change its focus.

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Although I would not mind if Hummer stays around, it's departure could mean more focus can be shifted to the more neglected brands in GM's empire.

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I think it would be wise to sell Hummer and Saab. Then the remaining divisions could be restructured into 3 dealership networks:

* Chevrolet: Mainstream, mass market, volume division. This volume division would compete against other mainstream brands like Ford, Dodge, Toyota, Honda, Hyundai, Kia, and Suzuki and carry the largest, most diverse product portfolio.

* Saturn/Pontiac/GMC: Midmarket, import focused dealer network. Saturn could carry FWD cars and MPVs based on Opel designs. Pontiac could carry RWD cars based on Holden/Opel designs. GMC could carry FWD/AWD crossovers based on actual Opel designs or Opel influenced designs. This dealer network would compete against brands that have images that are sportier, alternative, or Eurocentric such as Mazda, Nissan, Subaru, Volvo, and Volkswagen.

* Buick/Cadillac: Luxury dealer network. Buick would carry FWD luxury cars and FWD/AWD luxury crossovers. Cadillac would carry RWD luxury cars. This dealer network would compete against luxury brands such as Mercedes Benz, BMW, Audi, Lexus, Infiniti, Acura, and Lincoln.

I think that Chevrolet could handle the rapidly shrinking truck/SUV market on its own. Upper trim levels could provide a level of luxury for the truck based products at Chevrolet that would act as a substitute for the absence of these products at GM's other divisions.

I think this plan would allow GM to completely cover the market and provide each division with a relevant image and purpose in the auto market. It would also eliminate the need to create a platform mate for every division since each division (except Chevrolet) would have a focused, streamlined product portfolio. Platform sharing would be utilized to provide products and keep development costs low, but each individual product would receive its own distinct, brand appropriate exterior/interior styling and features to properly differentiate the platform mates. The practice of badge engineering clones to supply a division with products would be completely abolished and anyone suggesting to utilize this ridiculous practice would be immediately dismissed from the corporation.

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the CAW and Ontario government have already started to fight back against Oshawa's closing

http://www.thestar.com/article/435968

- Ontario won’t hesitate to recoup part of a $175-million provincial loan to General Motors earlier than planned in the wake of the automaker’s decision, Premier Dalton McGuinty said today.

It’s early yet, but the loss of 1,000 jobs — the latest blow to Ontario’s ailing manufacturing sector — likely means GM will be in violation of one of the conditions of the loan guarantee, McGuinty said.

Hargrove said GM committed in writing to produce pickups in Oshawa through the life of the new collective agreement which was ratified only two weeks ago.

He said the automaker also promised that Oshawa would build a new generation of light-duty trucks to be introduced in 2011 or 2012.

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isn't oshawa one, if not the best plant in GM's arsenal?

When's that ever stopped them? Someone draw the 'big picture' for me please at your convenience. :scratchchin:

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the CAW and Ontario government have already started to fight back against Oshawa's closing

http://www.thestar.com/article/435968

Well, the CAW can say what ever they want but the factory WILL close down. GM will have to cover some contract costs, but that will be it. I think it's a joke that Hargrove stated that it is "unfair".Well, it was unfair for me when I could not get hot selling vehicles to sell because the CAW wanted ridiculous benefits. Life isn't fair and the UAW-CAW should not be treated any differently than any other person in the economy. This factory is made to build vehicles that DON'T SELL WELL IN THIS NEW ERA! Why oh why should GM have an obligation to the CAW especially for all the crap that the CAW put GM and their dealers through. As a GM dealer, I for one can't wait to see the gates on that factory to close for good.

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Well, the CAW can say what ever they want but the factory WILL close down. GM will have to cover some contract costs, but that will be it. I think it's a joke that Hargrove stated that it is "unfair".Well, it was unfair for me when I could not get hot selling vehicles to sell because the CAW wanted ridiculous benefits. Life isn't fair and the UAW-CAW should not be treated any differently than any other person in the economy. This factory is made to build vehicles that DON'T SELL WELL IN THIS NEW ERA! Why oh why should GM have an obligation to the CAW especially for all the crap that the CAW put GM and their dealers through. As a GM dealer, I for one can't wait to see the gates on that factory to close for good.

'Zilla; Even though we were warned, this hit us by surprise somewhat. (imo) Maybe now we'll learn. Or be taught the hard way. Yet there are still folks who won't bat an eye until fuel surpasses $8 per gallon. Still be those who are able to afford the luxury and utility of a GMC Denali or the ubiquitous Silverado as they evolve toward increased efficiency. It's natural selection as it applies to machinery. Those who survive the upcoming 'fuel wars' (my weak attempt at humor) will look back and laugh at this some day.

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When's that ever stopped them? Someone draw the 'big picture' for me please at your convenience. :scratchchin:

PCS, looks for his TICK-TOCK crayon. :AH-HA_wink:

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PCS, looks for his TICK-TOCK crayon. :AH-HA_wink:

That's fine. I think I know what's going on. I want another person's take on it. Fire at will.

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All necessary moves I feel. The Trailblazer is a relic from a bygone era, and they were right to not put any money into it. It's amazing how fast the GMT-900s fell, but the car-based pickup move will finally move the segment forward. Also, he didn't say they would sell HUMMER for sure, he said they would investigate whether to sell it or change its focus.

Finally some one who noticed. They are killing some old vehicles, plants out of the country that are more expensive with the dollar low. Also He never siad Hummer would be killed or sold. He basically pointed out some options and they will make some changes.

Don't be suprised if some Indian does not buy them that GM puts the focus on the new small Jeep like Hummer they already have in the works. With a V6 or Ecotech it would be a much higer volume vehicle and more economical not just in mileage but purchace price. Jeep is not what they once were and Hummer can take things more back to basics and do not have to deal with heritage Jeep has to deal with.

Anyway none of thid is a shock to any of us and things will work out. At least GM is now waiting to make the changes as they have in the past.

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