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GM announces big changes to deal with higher gas prices


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I have a feeling the new GM will be midsize and small FWD cars. At least that's the feeling Rick Wagoner gave me this morning at the stockholders meeting. I also have a feeling you are going to see more commercials on the 17 models that get 30 mpg or more. He spoke on that too this morning.

more commercials for existing product is not what they need. the message is out. the product is recognized. people get it: GM has some fuel efficient cars, like other carmakers. the bottom line is the dollars are out there and so are the cars. the cobalt is likely midpack to last on most people's shopping lists. this is not a problem with familiarity. How about putting some of the dollars energy into mid-cycle improvements that are worth thier weight: like more attractive base wheel designs for the cobalt and aveo, body packages to enhance the look of basic cars, changes to renew the basic designs in people's eyes. people are being forced into basic cars, but they don't want a basic car: welcome to May 2008's best selling car: Honda Civic over 53k sales in one month!

Edited by turbo200
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more commercials for existing product is not what they need. the message is out. the product is recognized. people get it: GM has some fuel efficient cars, like other carmakers. the bottom line is the dollars are out there and so are the cars. the cobalt is likely midpack to last on most people's shopping lists. this is not a problem with familiarity. How about putting some of the dollars energy into mid-cycle improvements that are worth thier weight: like more attractive base wheel designs for the cobalt and aveo, body packages to enhance the look of basic cars, changes to renew the basic designs in people's eyes. people are being forced into basic cars, but they don't want a basic car.

I don't know what world Cali is in, but over here in the Real World USA, nada baby, nada damn one comercial have I seen on any of the 17 models that get over 30 mpg. Jesus half the people can't even tell you what Saturn sells.

I have been in the US almost 2 weeks, I've seen 3 GM ads, all for gas hogs. I'm with Rick on this, GM needs to step up the ads, and pronto.

Edited by Pontiac Custom-S
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I don't know what world Cali is in, but over here in the Real World USA, nada baby, nada damn one comercial have I seen on any of the 17 models that get over 30 mpg. Jesus half the people can't even tell you what Saturn sells.

I have been in the US almost 2 weeks, I've seen 3 GM ads, all for gas hogs. I'm with Rick on this, GM needs to step up the ads, and pronto.

Too little, too late, and for cars that struggle against the competition. Yes, they need more advertising - but the product has to be there first.

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I have a feeling the new GM will be midsize and small FWD cars. At least that's the feeling Rick Wagoner gave me this morning at the stockholders meeting. I also have a feeling you are going to see more commercials on the 17 models that get 30 mpg or more. He spoke on that too this morning.

That, and some Ford like ads could help out...

GM needs to remind customers what they missing....

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Trucks are meant to haul loads for workers, not go to the mall or golf course. The market is correcting itself.

Also, the GM press release says '2009 Cobalt to continue to summer 2010". They cant keep 09's in production that long. Probably meant 'current Cobalt around til 2010'.

Oh, and I see lots of ads for Chevys touting their MPG. Most advertising is done by local dealer groups. Also, dont think for a min. that TV ads are as effective as they were before the days of channel surfing.

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Car based pickup: :puke: x uncontrollably

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I don't know what world Cali is in, but over here in the Real World USA, nada baby, nada damn one comercial have I seen on any of the 17 models that get over 30 mpg. Jesus half the people can't even tell you what Saturn sells.

I have been in the US almost 2 weeks, I've seen 3 GM ads, all for gas hogs. I'm with Rick on this, GM needs to step up the ads, and pronto.

I agree - step up the ads - and specifically step them up on the Astra (I liked that car) - I'll tell you, if it had an armrest, iPod and XM as std. equipment, I think I would have traded in the tired old Jimmy for it right there on the spot. Seriously

But you're right, despite Cobalt and Aveo sales that are up, they still need to focus their ads on those cars more than the trucks. Who cares if they aren't 100% competitive with the Civic, they're still fuel efficient, and that's what's selling right now.

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Well, this sounds good, but it doesn't sound good enough.

It's about time for Hummer, as GM should have seen the writing on the wall for the brand....

Saab needs to go too, as it it wasting money that could be spent elsewhere....

As much as I like these two brands, Gm HAS to get back to basics...if they want to save their core brands...

Or, if they keep Saab, get rid of Buick or Pontiac.....

I think GM was trying to be nice with it's employees at the truck plants, as the TB should have already been gone, while the Tahoe should have had a major cut a few years ago...

It's not like trucks have not been sliding these last few years (and some models before that)

But the steps in the right direction is happening....the Volt, or course (needs to be following by another model quickly)

More small cars..

They need to offer sales for their current models (Cobalt, Astra) to get people in the seats and get the word out there....so people realize that these are not some 80s $h!boxes....While they may not be the best of GM's offerings, they are both solid cars.....

Add more Options to the Aveo......

Get a decent, fuel sipping engine in the Rado' and Canyon, for those who still need a truck for truck needs (farmers, builders etc) to save some of the truck sales....

More six speeds, FAST.

These are just a few that I have at the current moment....

Now I'm not saying that GM should sell the farm or anything, but they need to make smarter choices. And they do have some current options that are availible......

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Well, this sounds good, but it doesn't sound good enough.

It's about time for Hummer, as GM should have seen the writing on the wall for the brand....

Saab needs to go too, as it it wasting money that could be spent elsewhere....

As much as I like these two brands, Gm HAS to get back to basics...if they want to save their core brands...

Or, if they keep Saab, get rid of Buick or Pontiac.....

I think GM was trying to be nice with it's employees at the truck plants, as the TB should have already been gone, while the Tahoe should have had a major cut a few years ago...

It's not like trucks have not been sliding these last few years (and some models before that)

But the steps in the right direction is happening....the Volt, or course (needs to be following by another model quickly)

More small cars..

They need to offer sales for their current models (Cobalt, Astra) to get people in the seats and get the word out there....so people realize that these are not some 80s $h!boxes....While they may not be the best of GM's offerings, they are both solid cars.....

Add more Options to the Aveo......

Get a decent, fuel sipping engine in the Rado' and Canyon, for those who still need a truck for truck needs (farmers, builders etc) to save some of the truck sales....

More six speeds, FAST.

These are just a few that I have at the current moment....

Now I'm not saying that GM should sell the farm or anything, but they need to make smarter choices. And they do have some current options that are availible......

I'm guessing that you've never used a truck for work. If you had, you would never suggest the Colorado/Canyon - they would be utterly useless to me.

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Trucks are meant to haul loads for workers, not go to the mall or golf course. The market is correcting itself.

Also, the GM press release says '2009 Cobalt to continue to summer 2010". They cant keep 09's in production that long. Probably meant 'current Cobalt around til 2010'.

Oh, and I see lots of ads for Chevys touting their MPG. Most advertising is done by local dealer groups. Also, dont think for a min. that TV ads are as effective as they were before the days of channel surfing.

Well, the current Balt might stick around a few years after 10 as a slightly refresh......

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I'm surprised that some of the changes announced didn't include some pay cuts in the executive compensation (again).

It was item number 6 on the proxy vote today. Stockholder Proposal Regarding Stockholder Advisory Vote on Executive Compensation.

Also item number 10. Stockholder Proposal Regarding Performance-Base Equity Compensation Shareholders request that the Board adopt a policy whereby at least 75% of future equity compensation (stock options and restricted stock) awarded to senior executives is performance-based, and the performance criteria adopted by our Board is disclosed to shareowners.

This is basic Pay for Performance issue for Senior Executives, and to disclose what was awarded in stock to the Senior Executives to the shareholders.

Edited by Pontiac Custom-S
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I'm guessing that you've never used a truck for work. If you had, you would never suggest the Colorado/Canyon - they would be utterly useless to me.

i got an 04 colorado crew cab. i can tow our stratos f/s quite well. as long as you are say in the exterminator business or something along those lines it would be fine, heavy construction... no.

so when we are saying the plants are closing... is this for the year or forever... does this mean no new trucks for the rest of the year or no more new trucks? i dont completely understand that.

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Hummer is NOT exported to india or china, correct? With the boom still going on in those countries, I would think the demand there for a Hummer-type vehicle could be considerable.

Wouldn't make much sense, though..with Hummer's lousy gas mileage, selling those gas hogs there wouldn't do anything to reduce consumption in those growing markets..

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i got an 04 colorado crew cab. i can tow our stratos f/s quite well. as long as you are say in the exterminator business or something along those lines it would be fine, heavy construction... no.

so when we are saying the plants are closing... is this for the year or forever... does this mean no new trucks for the rest of the year or no more new trucks? i dont completely understand that.

A station wagon could do what a Colorado can do.

As for the plants, GM builds trucks in quite a few locations so they will remain available.

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Now what do you think? GM sent every stockholder with a 1000 shares or more a personal e-mail or snail-mail asking them to vote against the measures. How do I know? Because I own more shares than that. :AH-HA_wink:

Considering selling yet? :AH-HA_wink:

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Considering selling yet? :AH-HA_wink:

I'd buy what I could afford. :smilewide:

I already plan on buying stock anyway and increasing my shares to a certain percent year after year. At $17 bucks a share, GM stock isn't exactly expensive right now. I don't foresee it getting too expensive in the future, either.

Edited by YellowJacket894
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I'm guessing that you've never used a truck for work. If you had, you would never suggest the Colorado/Canyon - they would be utterly useless to me.

But Camino, other countries (india, for Example) use small trucks for many things.....

You would be surprised what you can use when you are forced to....

And it's not like you could use a full sized truck, as some jobs do require them..

If needed, they could even offer the 4.2 (or something like that).....

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But Camino, other countries (india, for Example) use small trucks for many things.....

Or Europe for that matter..they have reasonable sized trucks and vans (all diesels) for commercial use...(MB Sprinter, VW LT, Crafter, Ford Transit, etc...)

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But Camino, other countries (india, for Example) use small trucks for many things.....

You would be surprised what you can use when you are forced to....

And it's not like you could use a full sized truck, as some jobs do require them..

If needed, they could even offer the 4.2 (or something like that).....

The rear suspension would collapse under the weight of my trailer (empty). It would also be illegal to carry enough in one load to make a living.

And get this:

Any gain in fuel economy would be erased by the need to make multiple trips instead of just one.

No, the Colorado would be useless to me - no matter the engine.

Hell, sometimes the Silverado is too small.

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The rear suspension would collapse under the weight of my trailer (empty). It would also be illegal to carry enough in one load to make a living.

And get this:

Any gain in fuel economy would be erased by the need to make multiple trips instead of just one.

No, the Colorado would be useless to me - no matter the engine.

Hell, sometimes the Silverado is too small.

I understand your case, as everyone is different.. :yes:

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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.

normally I'd agree with you, but not this time. Its not like the contract was agreed to years before gas prices started skyrocketing, and you sure don't decide to close a number of plants in a day or two. Which means GM was negotiating in bad faith which leaves a nasty taste in my mouth. That says a lot for me because I'm 99.9% always on GM's side when it comes to GM-union issues.

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normally I'd agree with you, but not this time. Its not like the contract was agreed to years before gas prices started skyrocketing, and you sure don't decide to close a number of plants in a day or two. Which means GM was negotiating in bad faith which leaves a nasty taste in my mouth. That says a lot for me because I'm 99.9% always on GM's side when it comes to GM-union issues.

I agree. This company is going down the toilet. The only thing they know how do to is close plants. Another 4 plants close and tens of thousands of people out of work, no big deal. What are they up to now 15 plants closed since November 2005?. You would think they would of seen this coming 2-3 years ago and had other product in the pipeline to build at some of thier truck plants. While they were at it yesterday they should of pulled the plug on the Camaro too since the last thing they need is a gas guzzling muscle car. How ironic will it be next spring when 2500 people at the truck plant will be getting pink slips because of gas prices and next door they'll be launching the Camaro. They couldn't sell that in 2002 when gas was $1.25 a gallon. Idiots

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QUOTE(dfelt @ Jun 3 2008, 09:16 AM)

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

What the HELL do you need with......an H2, Escalade, SRX, AND a Suburban?

:wacko:

We'll maybe you are one of the growing crowd of people who like a Horse with Blinders thinks everyone can fit into small Econo Auto's. My family 6 generations now are born and bred in the USA! Our Heritage is German, but having large families, playing on the water, AKA towing a boat or sets of WaveRunners, camping, etc. We use these vehicles all the time.

But the biggest reason for these auto's is pure comfort, at 6'6" tall 280lbs, I am not about to be cramped in a tiny auto. I am average size for my family. There is only one person, My son who takes after a great aunt who was tiny at 5'8" tall and he is a Gymnast, so muscular at 165lbs.

Plus I have seen these so called 5 star crashed tested auto's and when hit by a large auto or even worse a Big Rig that is all over our freeways, these cars are totaled and never really protect the occupant. I will pay for the gas as I want plenty of steel around my family, friends etc. YOU CANNOT replace QUALITY of LIFE by driving a small eco car.

I understand not everyone can afford to drive large vehicles, but as long as I can afford it, I will protect my family the best I can.

8)

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I agree. This company is going down the toilet. The only thing they know how do to is close plants. Another 4 plants close and tens of thousands of people out of work, no big deal. What are they up to now 15 plants closed since November 2005?. You would think they would of seen this coming 2-3 years ago and had other product in the pipeline to build at some of thier truck plants. While they were at it yesterday they should of pulled the plug on the Camaro too since the last thing they need is a gas guzzling muscle car. How ironic will it be next spring when 2500 people at the truck plant will be getting pink slips because of gas prices and next door they'll be launching the Camaro. They couldn't sell that in 2002 when gas was $1.25 a gallon. Idiots

Yes, but you can;t change a world wide company overnight.

And I don't think anybody saw the price of gas going up that high that fast.....

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Thank Goodness OIL closed down again today at $122 a barrel from the High last week of $135. :stupid: Weird that we used to complain about $50 a barrell and now we complain about $100 and who knows where else it will go.

Interesting thought, After I read the GM press release, I was wondering if I could find an electric motor that would drive my boat fast enough and have a small Diesel generator to recharge the battery pack.

Hybrid power Boat???? Hey GM how about adding this to the awesome marine engine line you make. :D

Edited by dfelt
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Hummer is NOT exported to India or china, correct? With the boom still going on in those countries, I would think the demand there for a Hummer-type vehicle could be considerable.

India has price control of gas, diesel, and home cooking oil. They just raised the price of these commodities while dropping much of the tax on them. Still consumer are furious and the government is expected to be defeated soon. The world is really being hit hard by the price of oil and many political changes are near.

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I agree. This company is going down the toilet. The only thing they know how do to is close plants. Another 4 plants close and tens of thousands of people out of work, no big deal. What are they up to now 15 plants closed since November 2005?. You would think they would of seen this coming 2-3 years ago and had other product in the pipeline to build at some of thier truck plants. While they were at it yesterday they should of pulled the plug on the Camaro too since the last thing they need is a gas guzzling muscle car. How ironic will it be next spring when 2500 people at the truck plant will be getting pink slips because of gas prices and next door they'll be launching the Camaro. They couldn't sell that in 2002 when gas was $1.25 a gallon. Idiots

Closing plants and removing hourly workers is making the company "Top Heavy". Now GM has come to a point where white collar middle managers may probably be in majority. It all trickles down from top. Yet somehow these middle managers and upper level executives are not getting whacked. They are also part of the problem by having stupid strategies, bean-countership, horrid marketing, poor management. Yet their job security during GM turmoil is a vindication of not losing any sleep over their leisurely performance. Will it not be easier if they get rid of these mid-top "yes/no" men since they do not belong to any unions and trim the upper fat too?

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India has price control of gas, diesel, and home cooking oil. They just raised the price of these commodities while dropping much of the tax on them. Still consumer are furious and the government is expected to be defeated soon. The world is really being hit hard by the price of oil and many political changes are near.

The more I look at this increase in gas prices, the more I feel Capitalism in full force. There will be a time when an alternate fuel source will be a good solution as people will be forced to innovate or die because of rising fuel prices. Oil needs competition, and faster they (prices) rise the harder they fall. Oil has a status what Warren Buffet calls the "Toll Road." But in a free market "Toll Roads" hardly survive, unless there is an external (read governmental hand). Yeah the rise in oil is because of many a factors. But when oil gets a competition it and its producers will not be the only one driving the world. Capitalism will thus bring in a new solution. When will that happen? Nobody knows. But there certainly will be a solution.

The only thing the thinkers of this new solution should plan for is when oil will drop to $1.00/ gallon in wake of its new competition. That would be its real acid test.

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Closing plants and removing hourly workers is making the company "Top Heavy". Now GM has come to a point where white collar middle managers may probably be in majority. It all trickles down from top. Yet somehow these middle managers and upper level executives are not getting whacked. They are also part of the problem by having stupid strategies, bean-countership, horrid marketing, poor management. Yet their job security during GM turmoil is a vindication of not losing any sleep over their leisurely performance. Will it not be easier if they get rid of these mid-top "yes/no" men since they do not belong to any unions and trim the upper fat too?

That would only satisfy a small percentage of salary costs in the grand scope of operational costs that include all particulars of production and hourly-assembly workers. The problem is with the over-heavy production of low-demand vehicles whereby GM is not going to gain from adding to the inventory of high fuel consuming vehicles. I don't believe this is a decision based on the examination of a period-end statement. This decision comes from review of the consumer trends and managing the future of the brands.

GM, heck, all of us saw the writing on the wall during the pre-production phase of the GMT-900 series. Fuel prices were already starting to rise and a great amount of GM's resources were being put into that projects completion. I'm not exactly trying to be critical of GM's steps through the last decade; however, it would appear to me that with all of the changes that were already starting to occur while GM was making decisions on how to progress, they always seem to decide on staying the course, taking one step forward and, unfortunately end up taking two steps back. Money and resources would have better been spent on the development of better fuel efficiency and hybrid programs. This isn't to say none was spent, as well as the fact that GM was forced into the phase of attempting to market higher quality to the consumer, which would have been tough to do with tired-old platforms. A lot has been out of their control for the last decade in this rebuilding phase; however, it never took a crystal ball to see what was coming.

Yes, you want to keep the attention of your current consumers. You also want to be able to offer them something should the world change their decision on what they want/need. GM has been giving their customers what they wanted yesterday. Today, they are in need something else that GM hasn't had the time or resources to commit to earlier, though they could have.

That's just me...talking out of my butt. Still, I'm a consumer with a need. We bought a Grand Caravan this weekend because my review of SUV's has led me to the conclusion that they offer nothing more than that of a larger hatchback. Stow-n-go seating gives me far more practical use of my van than any SUV could hope to offer; that is, unless I bought a full-size variety, which would be overkill. Sure, I'll spend a lot on gas for this van. Averaging 27 MPG versus the same for a significantly smaller SUV kind of tips my decision to the van. It sure is a shame there are fewer companies still making them. It's even more disturbing that GM axed their vans entirely with this shift from high-consumption SUVs. I would tend to think that the minivan market would potentially increase at this point. Oops... one step forward, two steps back, yet again.

Edited by ShadowDog
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all those workers wont be losing thier jobs.. they are adding another shift at both Orion Michigan and Lordstown Ohio so some of those workers will be able to transfer to one of those two plants. so they can boost production of the Cobalt and Malibu two fuel efficient cars.

another thing id do is AXE all V8 engines in passenger cars EXCEPT for the top Camaro, Corvette, XLR, and the STS. EVERYTHING else should have a 4 cyl or a V6. when we can get 300 hp out of the 3.6L DOHC V6 it makes V8's in other cars than the ones i mentioned useless.

they need to develop a small DOHC V6 of around 2.7-3.0L to be used in midsize cars/small suv's.

the Suburban should be axed, the Tahoe should be the largest SUV.

consider putting the inline 6 cyl from the Trailblazer in the Tahoe as the base engine. with 270 hp it would be more than enough to power it.

the fact that the Aveo only gets 34 mpg is garbage. a car this size should be getting close to 40 mpg. we need to make a lighter 3 door Aveo and put in a 3 cyl, the metro didnt sell all that well but when they quit making them gas was $1.50 a gallon. if they would make a car now with close to 45 mpg the thing would sell.

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It's Spring and "GM's Annual List of Sweeping Changes" makes it's debut. Had enough? One day it'll come down to Rick W. and the janitor covering the overnight shift at the Renaissance Center.

Get it right already. Tune it so it will run. No more three-quarter hearted measures, else lose the customers who still come to the showrooms.

Why should I care? Why should anyone?

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It's Spring and "GM's Annual List of Sweeping Changes" makes it's debut. Had enough? One day it'll come down to Rick W. and the janitor covering the overnight shift at the Renaissance Center.

Get it right already. Tune it so it will run. No more three-quarter hearted measures, else lose the customers who still come to the showrooms.

Why should I care? Why should anyone?

longtooth, where do you work, the Baltimore Transmission plant or Wilmington Assembly?

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longtooth, where do you work, the Baltimore Transmission plant or Wilmington Assembly?

Wilmington, DE. Via Doraville, Ga , GMSPO Bensalem, PA and Fisher Body Trenton, NJ. Going back to 1976. I have friends who were transferred into various GM plants across the country and are still working since the mid-1990's. Some found their way to Janesville, WI. I passed on that one in '94 having a family member ill at the time.

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Wilmington, DE. Via Doraville, Ga , GMSPO Bensalem, PA and Fisher Body Trenton, NJ. Going back to 1976. I have friends who were transferred into various GM plants across the country and are still working since the mid-1990's. Some found their way to Janesville, WI. I passed on that one in '94 having a family member ill at the time.

I am in Detroit next week, but back in Delaware the week after, we should try to do lunch, my badge gets me into any GM facility.

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I am in Detroit next week, but back in Delaware the week after, we should try to do lunch, my badge gets me into any GM facility.

Are you a Contractor, Hourly or Salary? There are a handful of highly qualified hourly who roam the GM empire setting-up equipment and processes. Not as many as there once were, but a few. Try to figure out a place to meet. Starbucks on Kirkwood Highway near Best Buy?

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