GM Factories

[HarleyEarl]

GM factories most likely to close November 12, 2005 BY MICHAEL ELLIS FREE PRESS BUSINESS WRITER Doraville, Ga. •Employs 2,850 UAW hourly workers and 220 salaried. •Opened in 1947. •Builds the Pontiac Montana SV6, Saturn Relay, Buick Terraza and Chevrolet Uplander minivans. •Capacity utilization in 2004: 64%. •Why it may close: GM always has struggled in the minivan segment, and new crossovers arriving on the market may steal more of their thunder. New front-wheel drive crossovers able to seat seven passengers are scheduled to be built at GM's new Delta Township plant near Lansing. Doraville is one of GM's older plants and isn't near automotive suppliers. Janesville, Wis. •Employs 3,600 UAW hourly workers and 300 salaried. •Opened in 1919. •Builds the Chevrolet Suburban, Chevrolet Tahoe, GMC Yukon and GMC Yukon XL full-size SUVs. •Capacity utilization in 2004: 87%. •Why it may close: GM is the leader in full-size SUVs, but with higher gas prices, sales are falling. GM's new large SUVs arrive in dealerships next year, but officials have said they won't hit the sales peak of the past. Also an old plant isolated from suppliers. Lansing Craft Centre •Employs 330 UAW hourly workers and 60 salaried. •Year opened not available. •Builds the Chevrolet SSR convertible pickup. •Capacity utilization in 2004: Not available. •Why it may close: The Chevrolet SSR was a hit at the auto shows but not at dealerships. Sales have disappointed, and by the end of this year, GM will have halted production at the plant for nearly 30 weeks because of excess inventories of the SSR. It is GM's smallest vehicle assembly plant. Potentially at risk Oklahoma City •Employs 2,500 UAW hourly workers and 200 salaried. •Opened in 1979. •Builds the Chevrolet TrailBlazer EXT and GMC Envoy XL midsize SUVs. •Capacity utilization in 2004: 85%. •Why it may close: With gas prices above $2 and more fuel-efficient crossover vehicles arriving on the market, GM may not need two plants building midsize SUVs. (Moraine, Ohio, is the other.) It is far from automotive parts suppliers. •Why it may stay open: It's a relatively new plant. GM updated the paint shop after a tornado damaged it in May 2003. Pontiac East •Employs 2,500 UAW hourly workers and 270 salaried. •Opened in 1972. •Builds the Chevrolet Silverado and GMC Sierra full-size pickups. •Capacity utilization in 2004: 123%. •Why it may close: GM builds full-size pickups at three other plants. Pickup sales across the industry have softened, suggesting that GM could cut back production. •Why it may stay open: Production already above full tilt. Pickup sales could bounce back with new models arriving next year. Orion township •Employs 2,800 UAW hourly workers and 300 salaried. •Opened in 1983. •Builds the Pontiac G6 sedan and coupe. Next year to add the G6 convertible. •Capacity utilization in 2004: 29%. •Why it may close: Much rides on the success or failure of the G6, the surprise giveaway on "The Oprah Winfrey Show" in September 2004. Strong sales of the G6 are needed for the plant to reach full capacity of about 250,000 vehicles a year. •Why it may stay open: It's a candidate to get the next-generation Saturn Ion, and it's already one of GM's high-volume car plants. If sales are as good as GM says the G6 is, Orion Township could escape this round of plant closings. Spring Hill, Tenn. •Employs 5,000 UAW hourly workers and 700 salaried. •Opened in 1990. •Builds the Saturn Ion small car and Saturn Vue small SUV. • Capacity utilization in 2004: 78% for the Ion and 121% for the Vue. •Why it may close: There are rumors that the Ion and Vue may move to new plants. The vehicles are built on separate lines, and GM could shut one or both of those lines. GM is willing to build Saturns elsewhere. No plans have been revealed for future product at the plant. •Why it may stay open: It's one of GM's newest plants, modern and able to build various models. It's part of a huge complex that includes an engine plant and a stamping facility. It's the symbolic home of the Saturn brand. Contact MICHAEL ELLIS at 313-222-8784 or [email protected].

[Flybrian]

If I'm correct in my assumption, Lake Orion is one of the higher-quality plants in GM's operations. As far as the Lansing Craft Centre...are they stupid? What impact would closing Lansing even have as its the smallest (and most flexible?) GM facility? Lansing has also built many lower-run specialty vehicles, like the late-model J-car convertibles, EV1 and Eldorado.

[evok]

Piss poor speculation, that is what this is. What about the ancient Flint Truck plant building the GMT-880's, or D-Ham, or Wilmington that are underutilized for their foot print. More bla bla bla from somone that does not know the industry.

[balthazar]

I thought the Lansing Craft Centre was an outsourced facility. Is Linden already officially closed?

[91z4me]

Piss poor speculation, that is what this is.  What about the ancient Flint Truck plant building the GMT-880's, or D-Ham, or Wilmington that are underutilized for their foot print.  More bla bla bla from somone that does not know the industry.

[post="42524"]<{POST_SNAPBACK}>[/post]

evok, I was going to say it if you didn't. I know more about some of these plants than he does and that is just from reading a few of your posts.

[Chicagoland]

Linden is deader than Elvis. Doraville is the walking dead, but no way would Spring Hill get killed.

[Hudson]

Piss poor speculation, that is what this is.  What about the ancient Flint Truck plant building the GMT-880's, or D-Ham, or Wilmington that are underutilized for their foot print.  More bla bla bla from somone that does not know the industry.

[post="42524"]<{POST_SNAPBACK}>[/post]

It's actually the same "speculation" that industry insiders are using...nothing "piss poor" about it. Spring Hill is the only one that kinda surprises me, although this is not the first place I've heard this. Spring Hill is new and large, but it's not close to GM's core plants and that hurts.

Flint builds the big GMT800s, like you pointed out. THAT is why it's not on the block. Hamtramck, when up to speed with the Lucerne, should run near capacity. And Wilmington...poor, Wilmington; if the additional models due for that plant work out, Wilmington could be producing 150,000 (perhaps even 200,000) units in the next few years.

[91z4me]

Good to see you here Hudson. For those who don't know he is a very knowledgeable auto insider.

[thegriffon]

Spring Hill could easily be sold to Honda or Toyota at some stage, but I doubt they've thought of that yet. I fact it would be tempting to switch it to a JV like NUMMI, but with Honda, if you could decide on a joint project, perhaps in small and midsize crossovers.

[evok]

It's actually the same "speculation" that industry insiders are using...nothing "piss poor" about it. Spring Hill is the only one that kinda surprises me, although this is not the first place I've heard this. Spring Hill is new and large, but it's not close to GM's core plants and that hurts.

Flint builds the big GMT800s, like you pointed out. THAT is why it's not on the block. Hamtramck, when up to speed with the Lucerne, should run near capacity. And Wilmington...poor, Wilmington; if the additional models due for that plant work out, Wilmington could be producing 150,000 (perhaps even 200,000) units in the next few years.

[post="42936"]<{POST_SNAPBACK}>[/post]

If one is going to "speculate" than the author of that article should have been more complete and present the pros and cons for all possible candidates. This first thing the author should have started out with was a time frame.

[daves87rs]

Hmm...looks some are right...some, well.... They will be right on the money with doraville and janesville. Within the next few years, they will pretty much be useless....I know that they are on the list for sure. Flint? very tough sell. People may stop buying SUVs, but they are still going to buy trucks... Spring Hill? doubtful. While saturns will no longer be built there..something else will. Question is what? trucks? SUVS? Both? Jeeps? :P The LCC could be closed, flexible or not. Gut feeling is that it will...but it depends on quite a bit too... D-ham? depends on if they get something new...as the Lucrene and DTS will make way for something new...Will it close now? No. Best Bet for Gm to close? Those older plants, along with the extra truck/suv plants...

[daves87rs]

It's actually the same "speculation" that industry insiders are using...nothing "piss poor" about it. Spring Hill is the only one that kinda surprises me, although this is not the first place I've heard this. Spring Hill is new and large, but it's not close to GM's core plants and that hurts.

Flint builds the big GMT800s, like you pointed out. THAT is why it's not on the block. Hamtramck, when up to speed with the Lucerne, should run near capacity. And Wilmington...poor, Wilmington; if the additional models due for that plant work out, Wilmington could be producing 150,000 (perhaps even 200,000) units in the next few years.

[post="42936"]<{POST_SNAPBACK}>[/post]

Yep, though Spring Hill can still be used for something else, which might be
its saving grace...

[Hudson]

Good to see you here Hudson.

For those who don't know he is a very knowledgeable auto insider.

Thanks.

[Hudson]

If one is going to "speculate" than the author of that article should have been more complete and present the pros and cons for all possible candidates. This first thing the author should have started out with was a time frame.

He should have added more reasons for the choices, but the choices are the current top picks.

[Hudson]

Spring Hill could easily be sold to Honda or Toyota at some stage, but I doubt they've thought of that yet. I fact it would be tempting to switch it to a JV like NUMMI, but with Honda, if you could decide on a joint project, perhaps in small and midsize  crossovers.

I doubt it would become a joint-venture, but that possibility is much GREATER than someone (like Honda or Toyota) buying Spring Hill outright. Why would either Honda or Toyota want to let the UAW get a foot in the door? If Spring Hill gets sold, the UAW goes with it.

[evok]

He should have added more reasons for the choices, but the choices are the current top picks.

[post="43373"]<{POST_SNAPBACK}>[/post]

No, for the most part that is just speculation, by the "insiders" behind the scenes.

[Hudson]

No, for the most part that is just speculation, by the "insiders" behind the scenes.

[post="43418"]<{POST_SNAPBACK}>[/post]

Trust me, it's more than just "speculation."

[evok]

Trust me, it's more than just "speculation."

[post="43428"]<{POST_SNAPBACK}>[/post]

Some of the plants listed in the article are based upon 'ill informed speculation". Trust me.

[91z4me]

Some of the plants listed in the article are based upon 'ill informed speculation".  Trust me.

[post="43430"]<{POST_SNAPBACK}>[/post]

Uh Oh. Insider's debate. Whoever gives us the most info on the next Camaro we belive. Ready guys, Go! :lol:

[IbuyGM]

Hudson and Evok, yes some is speculation. However, Doraville and Janesville are not suprising. OK City is because they were just awarded a new vehicle line up. That poor bartender in Janesville though. He will be all alone in that parking lot if/when Janesville closes. Bet ya he wishes he would have sold that bar now. Flint will not close, that is the only thing keeping Flint alive right now, also it build the GMT 800 (as people have pointed out). And it is getting ready for the 900. Here is my speculation for closings, Janesville Doraville Lansing Craft Center and for you insiders I hear rumbles about Spring Hill (but doubtful to me) Oh and for everyone with the Camaro, its in the works as a model for NAIAS. Also, keep your eyes open for a possible Chevy Nova concept esque vehicle. Something to compete with the Dodge Magnum

[Hudson]

Hudson and Evok, yes some is speculation.  However, Doraville and Janesville are not suprising.  OK City is because they were just awarded a new vehicle line up. 

That poor bartender in Janesville though.  He will be all alone in that parking lot if/when Janesville closes.  Bet ya he wishes he would have sold that bar now.

Flint will not close, that is the only thing keeping Flint alive right now, also it build the GMT 800 (as people have pointed out).  And it is getting ready for the 900. 

Here is my speculation for closings,
Janesville
Doraville
Lansing Craft Center
and for you insiders
I hear rumbles about Spring Hill (but doubtful to me)

Oh and for everyone with the Camaro, its in the works as a model for NAIAS.  Also, keep your eyes open for a possible Chevy Nova concept esque vehicle.  Something to compete with the Dodge Magnum

Flint is safe...but Pontiac East isn't.
I think Oklahoma City is safe, but the there's debate on that among my contacts.
I think Spring Hill SHOULD BE safe, but again....people are talking.

Doraville is gone, Janesville is probably gone, Lansing Craft could be sold.

[jmore1276]

In my opinion...(and we all know what those are like) Janesville won't be gone for a while as they've just retooled for the 900's and Mexico is switching from SUV's to pickups. So there will be only 2 plants building 900 SUV's which seems to fit the forcast so far. Spring Hill is retooling as I write this. For what who know's? I heard this info from people at work who transfered from these plants. That said...who know's what GM will do? They've closed plants in the past only months after investing MILLIONS into them. Doarville would be my top pick. BTW...Jersey and Baltimore are closed (maybe not "officially" but for all intensive purposes anyway).

[91z4me]

In my opinion...(and we all know what those are like) Janesville won't be gone for a while as they've just retooled for the 900's and Mexico is switching from SUV's to pickups. So  there will be only 2 plants building 900 SUV's which seems to fit the forcast so far. Spring Hill is retooling as I write this. For what who know's? I heard this info from people at work who transfered from these plants. That said...who know's what GM will do? They've closed plants in the past only months after investing MILLIONS into them. Doarville would be my top pick. BTW...Jersey and Baltimore are closed (maybe not "officially" but for all intensive purposes anyway).

[post="44460"]<{POST_SNAPBACK}>[/post]

Spring Hill will most likely be the home to TE(ThetaEpsilon) crossovers including the BRX and SAAB 9-4.

[jmore1276]

Spring Hill will most likely be the home to TE(ThetaEpsilon) crossovers including the BRX and SAAB 9-4.

[post="44485"]<{POST_SNAPBACK}>[/post]

Thanx for the info...Theta and Epsilon 2 right?

[RBB]

Sorry, please ignore. Can I delete this post? -RBB Edited November 17, 2005 by RBB

[sciguy_0504]

LOL.

[ehaase]

GM should close as many plants as needed to get production in line with demand (roughly 20 percent of the market). I read in Business Week today that the average transaction price of a GM car is $21,000, while the average transaction price of a Toyota product is $24,500. GM needs to reduce supply so that it doesn't have to rely on all of these incentives and get its average transaction price close to Toyota's. In the next round of negotiations with the unions, GM should not negotiate or compromise with the UAW and CAW on plant closures, even it results in a strike. I don't know exactly what plants should close (probably those farthest away from the upper Mid West and Great Lakes states where most of the suppliers are), but GM should only operate the plants that will help it maximize profits. That probably means mostly closing U.S. plants and keeping open the plants in Mexico and Canada (because of health care costs). Ending the jobs bank should also be non-negotiable for GM in the next contract negotiations, even the UAW and CAW strike. GM should also demand the UAW accept the same health care plan as white color workers, even if results in a strike. Short of bankruptcy, GM is probably stuck with the pension liabilities, but I don't think that bankruptcy is the best choice for GM. Edited November 18, 2005 by ehaase

[boz2730]

IbuyGM: I see that you read the Wall Street Journal. That article was the most biased article about GM Janesville I have read. Janesville has one of the best workforces in the GM system. Don't let a few bad apples tarnish the reputation of the whole plant. I'm sure there are bars by a lot of GM facilities. The Janesville plant is scheduled to be producing until GMT-900 production is at the end of its life cycle, which is 2010-2012. After that, who knows what might happen. But, to set the record straight, GM Janesville has made great strides over the past few years to have a viable future in the GM system.

[Hudson]

IbuyGM:

I see that you read the Wall Street Journal. That article was the most biased article about GM Janesville I have read. Janesville has one of the best workforces in the GM system. Don't let a few bad apples tarnish the reputation of the whole plant. I'm sure there are bars by a lot of GM facilities. The Janesville plant is scheduled to be producing until GMT-900 production is at the end of its life cycle, which is 2010-2012. After that, who knows what might happen. But, to set the record straight, GM Janesville has made great strides over the past few years to have a viable future in the GM system.

[post="44682"]<{POST_SNAPBACK}>[/post]

Sure...on paper. Janesville is on the short list...not at the top, but on the list.

[evok]

There is only one minor plant GM can close in the next 12 months that will not have an impact on sales. Any other plants that GM announces will close when the products they are building are either phase out at the end of their life cycle or market share for a product reaches a point where production can be consolodated into a redundant plant. This balancing act could take two years at least before the electicity is turn off at any major facility.

[IbuyGM]

Boz2370 I did not read any article on Wall Street Journal. This is from what I heard. I know the local union and management have a not so great working relationship at time and I also know that the building is 80yrs old. Janesville is on the list for a lot of reasons, not all I would like to digress into. And also, GM has put money into other plants before and then decide to close them anyways. There was a plant in NY that all this million dollars worth of equipment was bought and while the plant was putting it up, GM came and said start taking it down. Just because someone is awarded a vehicle does not make it safe. This is a problem, everyone thinks it is not going to happen to them, so therefore no changes are made to keep a plant competitive. Also, I do not regergitate facts from something I read. I have never read the WSJ. By the way, I know Wilmington is getting new products but someone mentioned that they might be on the list. I agree with Evok, the only plant in the next 12 months that will probably close or still stay idle will not affect GM a ton.

[poly]

Boz2370

I did not read any article on Wall Street Journal.  This is from what I heard.  I know the local union and management have a not so great working relationship at time and I also know that the building is 80yrs old.  Janesville is on the list for a lot of reasons, not all I would like to digress into.  And also, GM has put money into other plants before and then decide to close them anyways.  There was a plant in NY that all this million dollars worth of equipment was bought and while the plant was putting it up, GM came and said start taking it down.  Just because someone is awarded a vehicle does not make it safe.  This is a problem, everyone thinks it is not going to happen to them, so therefore no changes are made to keep a plant competitive.

Also, I do not regergitate facts from something I read.  I have never read the WSJ. 

By the way, I know Wilmington is getting new products but someone mentioned that they might be on the list.

I agree with Evok, the only plant in the next 12 months that will probably close or still stay idle will not affect GM a ton.

[post="45101"]<{POST_SNAPBACK}>[/post]

Are Wilmington's new products Kappas? Edited November 19, 2005 by poly

[daves87rs]

Flint is safe...but Pontiac East isn't.
I think Oklahoma City is safe, but the there's debate on that among my contacts.
I think Spring Hill SHOULD BE safe, but again....people are talking.

Doraville is gone, Janesville is probably gone, Lansing Craft could be sold.

[post="43867"]<{POST_SNAPBACK}>[/post]

Sold? Hmm...

Glad to see everyone is agreeing with me.... bad news or not.....

[jmore1276]

Janesville just retooled for GMT 900's so not gone.........yet. Mexico is turnig from SUV's to Pickups...to offset the sale change