Jump to content
William Maley

GM News: GM's Workers At Oshawa Want A Deal That Ensures The Future of Production

Recommended Posts

This week, Fiat Chrysler Automobiles, Ford, and General Motors begin talks with Unifor, Canada’s auto workers union for new agreements. GM will likely have the most contentious talks as workers at GM's Oshawa plant don't know what the future holds after 2018.

 

The plant has already lost a third shift and about 1,000 jobs when it moved production of the Camaro to Lansing last year. Next year will see the end of production of the Chevrolet Equinox, leaving just the Buick Regal and Cadillac XTS. GM has said time and time again for the past two years that it needs to know labor costs before making any decisions on the plant, only causing the worry to increase.

 

“The company in the past have had feasibility studies or launch teams if we are going to get product. This year, there’s no feasibility studies going on, no launch teams,” said Colin James, president of Unifor Local 222 to The Detroit News.

 

“Of course, it’s led to a lot of our members in the plant asking questions. There’s uncertainty: ‘Why is there no launch team?’ ‘Are they planning on closing the facility?’ General Motors is basically not answering that question.”

 

Yesterday at a news conference in Toronto, Unifor president Jerry Dias said workers at Oshawa will not sign a contract unless there are plans for production.

 

“We are not going to leave negotiations until we have a firm commitment from General Motors on product,” said Dias.

 

“We firmly believe General Motors will exit Oshawa unless we have a firm commitment.”

 

But GM has said that it will not make any commitments on investments until there is an agreement in place.

 

“We won’t be in a position to make a competitive investment decision until after we are through the negotiations,” said David Paterson, GM Canada’s vice-president of corporate affairs.

 

“We understand that there is a lot of anxiety about Oshawa," Paterson said. He went onto say that GM's focus during the talks is to work on an agreement that is "mutually beneficial and economically competitive."

 

Whether or not GM and Unifor are able to work an agreement before September 19th remains to be seen. We'll be keeping a close eye on this.

 

Source: The Toronto Star, The Detroit News


View full article

Share this post


Link to post
Share on other sites

There should have been assurances put forth when the Canadian Federal and Ontario provincial governments bailed them out that GM would keep X products being assembled in Canada.

  • Downvote 2

Share this post


Link to post
Share on other sites

Oh please, I can see Oshawa closing from here..... I don't know why the workers on site wouldn't see it. 

I think they know as well, they just don't want it to come to fruition. 

  • Upvote 1

Share this post


Link to post
Share on other sites

Well.

I also saw this coming when the CDN government sold off their remaining shares in GM.

 

I wanted to say if I was in charge of these things I would have kept a controlling interest in GM Canada shares to prevent Oshawa from closing forcing GM Detroit Headquarters to keep Oshawa open with cars being built there, but Im not sure the bailout agreement was written that way for that to happen...

 

Yep. Oshawa will be closing.

 

I wonder what El Kabong thinks about this...will he vehemently HATE on GM now he being Canadian and all?

 

Us Canadians are kinda like you Americans (THANX OBAMA), Im sure he will just blame Justin Trudeau for this and continue on ranting about FoMoCo.

 

http://www.wsj.com/articles/canada-sells-remaining-shares-in-general-motors-1428363868

 

http://www.huffingtonpost.ca/2015/04/08/gm-share-sale-canadian-government_n_

 

7024464.html

 

http://www.theglobeandmail.com/report-on-business/canada-to-sell-final-73-4-million-shares-of-gm-from-bailout/article23814942/

 

from the last link above:

Labour leaders had urged Ontario and Ottawa to hold on to the shares as a bargaining chip in securing pledges from GM to maintain jobs in Canada.

“It would have been ideal for the government to hold on to the shares and use that to leverage General Motors to make a strong commitment to the facility in Oshawa,” said Hassan Yussuff, President of the Canadian Labour Congress, in an interview Monday. “Obviously, the government is using every means possible to raise as much cash as they can without considering the future of the auto industry in the country.”

 

 

trudeau%2Bsanta%2Bcons.jpg

3298d1440c98a4107f3e82df8e21176c5abba0ea

  • Upvote 1

Share this post


Link to post
Share on other sites

Im disappointed in this as I see the writing on the wall.

Damned right pissed off I am.

But at the end of the day, GM has to remain profitable and if the CAW  and Oshawa cannot come to an agreement for GM to remain profitable in any way they can. Then so be it.

 

Canada should be looking at Hyundai and anybody else to build their cars here, not just GM, Ford and Chrysler,  but that also means that the CAW has to realize that Mexico is quite competitive and adept in building cars too...and part of NAFTA...

 

 

EDIT:

BECAUSE I AGREE WITH DREW ABOUT THE CAW AND I UNDERSTAND WHAT IS GOING ON BEFORE DREW MADE HIS LAST POST!!!

Edited by oldshurst442
  • Upvote 1

Share this post


Link to post
Share on other sites

If the Regal and XTS are all they are making, that plant looks like it is closing.  XTS doesn't have much time left, the next Regal could be built where any Epsilon car is made, and they don't make that many of them to begin with.

 

Sadly I think most sedans from the Big 3 will get built in Mexico where the labor is cheaper, and the SUVs and trucks will get made here.  Unless the UAW wants to accept starting wages at $18 an hour not $29 an hour these jobs will keep leaving.  All these factories offer overtime, an entry level auto worker could still make $40k a year with benefits at $18-19 an hour.  UAW wants $60-70k a year wages to build cars, no wonder the Big 3 are leaving.  The unions aren't doing their members any favors, and the didn't do them any favors in the 90s or 2000s either.    Notice the non-union auto factories in the South are not shutting down, most of them are expanding.  And I am democrat.

Edited by smk4565

Share this post


Link to post
Share on other sites

No one promises you work or a job for life, and business should never do it. Reality is you keep your trade skills sharp and learn new things or become unemployed. I am so sick of unions thinking they are superior and have to have promises of lifelong employment. Welcome to the 21st century and if you are that ignorant to not see this coming you deserve what you get.

  • Upvote 1

Share this post


Link to post
Share on other sites

Oh please, I can see Oshawa closing from here..... I don't know why the workers on site wouldn't see it.

Fear makes for powerful blinders. I feel for my former co-workers. But Oshawa is done. The Government of Ontario and Unifor have combined to make it too expensive to make cars in the province. Ingersoll should take notice.

I think more of the blame lies with the CAW than with the Canadian government.

The Feds don't have much say about it. The Provincial government is mainly to blame on the elected-official side of the table.

  • Upvote 1

Share this post


Link to post
Share on other sites

If the Regal and XTS are all they are making, that plant looks like it is closing.  XTS doesn't have much time left, the next Regal could be built where any Epsilon car is made, and they don't make that many of them to begin with.

 

Sadly I think most sedans from the Big 3 will get built in Mexico where the labor is cheaper, and the SUVs and trucks will get made here.  Unless the UAW wants to accept starting wages at $18 an hour not $29 an hour these jobs will keep leaving.  All these factories offer overtime, an entry level auto worker could still make $40k a year with benefits at $18-19 an hour.  UAW wants $60-70k a year wages to build cars, no wonder the Big 3 are leaving.  The unions aren't doing their members any favors, and the didn't do them any favors in the 90s or 2000s either.    Notice the non-union auto factories in the South are not shutting down, most of them are expanding.  And I am democrat.

 

 

Just sedans? You must be kidding.....FCA has plans to have most of their lineup built in Mexico or imported in the next ten years.....and I expect other automakers to build more down there too, as Wall Street expects a better profit margin from the automakers.....

Share this post


Link to post
Share on other sites

Oh please, I can see Oshawa closing from here..... I don't know why the workers on site wouldn't see it. 

 

 

They knew that 10 years ago.......

Share this post


Link to post
Share on other sites

Times have changes and Unions can no longer dictate what they want. The CAW needs to learn what most of the UAW locals have learned. 

Today GM has more plants and capacity than they need. The locals that are thriving have learned to work with GM and make a plant profitable and competitive. They make deals that are beneficial to both sides. Places like Lordstown were a steaming heap of non competitiveness. GM was on the way to closing them down. But the local there has learned to work with the new GM and they have been rewarded with good product and much in overtime. GM is making money and the UAW workers are making money. 

We see the same in Kansas and most Michigan plants. So far this is working well with balance. 

The CAW at Oshawa has been hostile and demanding and that does not play anymore. GM has options and choices that do not have to include Mexico anymore. 

Before GM had few options with the unions and were forced into many bad deals and I see them protecting themselves from this. 

 

Some folks need to still get it thought their heads that it takes a good relationship on both sides to make this work. MFG are not endless pits of money that can be abused or we will end up like 2008 but eve much faster. 

The truth is companies are here to make money and produce income to share holders. Their primary purpose is not just to provide jobs. Harsh sounding but that is how life is. As in nature a salmon must die to support a Bear. But in this case things can be worked out to where very one benefits if both sides are smart. 

As it is Oshawa got a big head as they had good ratings in quality and have a large facility but that matters little in today's markets where pretty much any plant can match their quality and smaller plants can beat their efficiency. 

Share this post


Link to post
Share on other sites

Well.

I also saw this coming when the CDN government sold off their remaining shares in GM.

 

I wanted to say if I was in charge of these things I would have kept a controlling interest in GM Canada shares to prevent Oshawa from closing forcing GM Detroit Headquarters to keep Oshawa open with cars being built there, but Im not sure the bailout agreement was written that way for that to happen...

 

Yep. Oshawa will be closing.

 

I wonder what El Kabong thinks about this...will he vehemently HATE on GM now he being Canadian and all?

 

Us Canadians are kinda like you Americans (THANX OBAMA), Im sure he will just blame Justin Trudeau for this and continue on ranting about FoMoCo.

Nonsense.

In all likelihood it was Montreal's supremely inept manufacturing plant that helped secure me at least two or three more years in Oshawa than I would otherwise have gotten.

Now stop grasping at straws. You just look silly

  • Upvote 1

Share this post


Link to post
Share on other sites

 

Well.

I also saw this coming when the CDN government sold off their remaining shares in GM.

 

I wanted to say if I was in charge of these things I would have kept a controlling interest in GM Canada shares to prevent Oshawa from closing forcing GM Detroit Headquarters to keep Oshawa open with cars being built there, but Im not sure the bailout agreement was written that way for that to happen...

 

Yep. Oshawa will be closing.

 

I wonder what El Kabong thinks about this...will he vehemently HATE on GM now he being Canadian and all?

 

Us Canadians are kinda like you Americans (THANX OBAMA), Im sure he will just blame Justin Trudeau for this and continue on ranting about FoMoCo.

Nonsense.

In all likelihood it was Montreal's supremely inept manufacturing plant that helped secure me at least two or three more years in Oshawa than I would otherwise have gotten.

Now stop grasping at straws. You just look silly

 

 

I know about that plant....

 

Chevy Celebrities would be rolling off the line while the GM worker would be sitting down on a chair reading Le Journal de Montréal and when the Celebrity would be at his station, the GM worker would put down his newspaper, get up, approach the vehicle, do what he has to do and go back to his paper awaiting the next vehicle to come his way...

 

My dad bought a brand new 1986 Chevy Celebrity.  Iron Duke powered, AM radio only stripper. I still have fond memories of that car. It served our family well!

 

This aint about that.

Its about me calling you out on a certain hypocritical view point you may have regarding GM versus FoMoCo.

 

You brought up Saint-Thérèse...

You have countless of times knocked Ford for mediocrity...

 

You see where Im getting at?

 

YOU take shots at Ford for mediocrity...

YOU brought up Sainte-Thérèse...

I call you up on hypocrisy....

 

Sorry El K...

C'est La Vie!

150811165239-trump-shrug-gif-custom-1.gi

 

 

 

I REALLY SHOULD DO A CANADIAN ONE....

justin-trudeau-shrug.gif

Edited by oldshurst442

Share this post


Link to post
Share on other sites

Don't be sorry.

I ain't, so why should you be?

 

 

Oh...that wasnt me being apologetic..

 

That was me being polite telling you to...go get your &@#$+# shine box

 

Trying to make it seem like Im kidding with you....busting your ballz a little bit...

Share this post


Link to post
Share on other sites

Oh.

...I still don't feel bad. Ford stuff don't do a whole lot for me at the best of times, and too many of their fans say stupid things for me to not laugh/cringe at them.

Like blaming True-d'oh for Oshawa's predicament, for instance. There's plenty I can make fun of him for... but this ain't one of them.

Sure helped you make a nice leap to take a dig at me tho

Edited by El Kabong
  • Upvote 1

Share this post


Link to post
Share on other sites

Oh.

...I still don't feel bad. Ford stuff don't do a whole lot for me at the best of times, and too many of their fans say stupid things for me to not laugh/cringe at.

 

Riiiiiight!

 

You consume yourself silly daily laughing at Ford because of what Ford fans say....

 

What you just said  would be some of the stupid things GM fans say and THAT makes ANYBODY laugh/cringe at...

 

Again...this whole hypocrisy thing...

You just cant seem to shake that off, can you?

 

 

About Trudeau and taking a nice leap to take a dig at you....

 

That is the beauty of it....

You probably thought of it...so it wasnt much of a nice leap  as it was a just a little casual stroll...laughing at you....having fun at your expense, the way I did with Wings....

 

Its easy to do to both of you since both of you have only 1 objective....

 

OK....

ONWARD and upward moving forward about Oshawa.....

Edited by oldshurst442

Share this post


Link to post
Share on other sites

Times have changes and Unions can no longer dictate what they want. The CAW needs to learn what most of the UAW locals have learned. 

Today GM has more plants and capacity than they need. The locals that are thriving have learned to work with GM and make a plant profitable and competitive. They make deals that are beneficial to both sides. Places like Lordstown were a steaming heap of non competitiveness. GM was on the way to closing them down. But the local there has learned to work with the new GM and they have been rewarded with good product and much in overtime. GM is making money and the UAW workers are making money. 

We see the same in Kansas and most Michigan plants. So far this is working well with balance. 

The CAW at Oshawa has been hostile and demanding and that does not play anymore. GM has options and choices that do not have to include Mexico anymore. 

Before GM had few options with the unions and were forced into many bad deals and I see them protecting themselves from this. 

 

Some folks need to still get it thought their heads that it takes a good relationship on both sides to make this work. MFG are not endless pits of money that can be abused or we will end up like 2008 but eve much faster. 

The truth is companies are here to make money and produce income to share holders. Their primary purpose is not just to provide jobs. Harsh sounding but that is how life is. As in nature a salmon must die to support a Bear. But in this case things can be worked out to where very one benefits if both sides are smart. 

As it is Oshawa got a big head as they had good ratings in quality and have a large facility but that matters little in today's markets where pretty much any plant can match their quality and smaller plants can beat their efficiency. 

 

Bump....

 

Because the last couple of posts after this one is just a hot pile of shyte!

And THIS is bang on to what is going on in Oshawa.

Share this post


Link to post
Share on other sites

Nice hot take.

Or you could ask the guy who, you know, used to actually WORK AT OSHAWA.

...back in '06 or so when the 'schwa was churning out Impalas and Centurys to fleets far and wide I told a union brother that as it currently sits the place had about ten or fifteen years left in it. He thought I was nuts. But I read the news and the magazines and sales and percentage breakdowns. The place was building mostly mediocre stuff-that simple. And I wasn't afraid to bust GM's chops for it even as I helped build it, mainly in the old AWCC. Just awful stuff. Even their "innovations" were bad-transverse smallblocks driving front wheels wider than the rears?

The housing crash and Great Recession came shortly after, of course. And in between the (very good) truck plant got taken away because of cheaper labor in Mexico. The product deficiencies and truck plant, plus the recession, should have clued Unifor in that things needed to change, and clued in management that they needed better product to build.

Unfortunately the union missed the point entirely, and the product was hit (Camaro) and miss (Regal). I suspect that CAW/Unifor had reached the same conclusions about Oshawa as I had but decided on a long-term strategy of getting the old boys as many 30-year pensions as they could rather then roll with the punches and restructure contracts and wage models. And now you have the endgame playing out before your eyes.

Alternately, you could do verbal diarrhea with personal digs and politician name-dropping as informed conversation. I'll see if I can get Mean Gene Okerlund on the phone to moderate that.

Edited by El Kabong
  • Upvote 2
  • Downvote 2

Share this post


Link to post
Share on other sites

verbal diarrhea is what you do....

 

Like Wings.....YOU are VERY insightful...yet you dont share those views with us....you grace our presence with crap biased agaisnt and solely at Ford..and to get away with it..you have nice Vince McMahon speeches yourself, such as your signature: It's just facts. Nothing personal.

 

 

You wanna get Mean Gene Okerlund?

 

OK....as long as I could get  Stone Cold Steve Austin!

  • Upvote 1

Share this post


Link to post
Share on other sites

Nonsense.

My time in Oshawa was absolutely critical to making the views I hold today. I saw firsthand the futility of whoring out to fleet and minimizing product innovation. I saw people pat themselves on the back and crow about improvements in sales numbers and vehicle quality when they were only measuring against their own past efforts. Most of all, I saw how destructive those blinders and hidebound ideologies were to a brand.

At this point I should point out that you're choosing a guy who slapped around his wife to use as an example for... well, I'm not really sure what.

Jes' sayin'

  • Upvote 2

Share this post


Link to post
Share on other sites

Now, Oshawa. Been there, done that, saw it coming, got out before the trainwreck.

Shall we continue?

  • Upvote 1

Share this post


Link to post
Share on other sites

Nonsense.

My time in Oshawa was absolutely critical to making the views I hold today. I saw firsthand the futility of whoring out to fleet and minimizing product innovation. I saw people pat themselves on the back and crow about improvements in sales numbers and vehicle quality when they were only measuring against their own past efforts. Most of all, I saw how destructive those blinders and hidebound ideologies were to a brand.

At this point I should point out that you're choosing a guy who slapped around his wife to use as an example for... well, I'm not really sure what.

Jes' sayin'

 

Jes sayin....for what?

 

Stone Cold Steve is just a character on TV and the wrestling circuit...for entertainment

Just like this character......

 

 

el-kabong-o.gif

 

The man playing Stone Cold Steve is the one with the problems...

Dont know him, dont really care for him...

 

However....I aint the one that has named my internet persona as some sort of sexual perverse joke of some sort....

 

URBAN DICTIONARY:

 

 

A surprise attack using a flacid penis to startle an unsuspecting victim. This is usually done by slapping a distracted person across the face or head with your penis while yelling the phrase "El Kabong" to proclaim your successful prank over the El Kabonged individual, and alert any witnesses to the humorous use of your private parts.

 

 

Jes sayin'

 

 

And yes...we can continue...

Onward, upward and moving forward.

Edited by oldshurst442
  • Upvote 1

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Who's Online   0 Members, 0 Anonymous, 54 Guests (See full list)

    There are no registered users currently online



  • Social Stream

  • Similar Content

    • By William Maley
      General Motors' upcoming restructuring plan where more than 10,000 jobs will be cut and five factories losing products has caused many politicians to become very upset. Yesterday, CEO Mary Barra traveled to Capitol Hill to try an mitigate the social damage by this announcement. Those expecting Barra to backpedal or balk under pressure from various lawmakers on moving production of certain vehicles out of Mexico to plants in the U.S. would come away disappointed. 
      “I want to make sure that the workforce knows that there are limitations and we do have an overcapacity across the country. I understand this is something that impacts the country and I understand that there is a lot of emotion and concern about it,” Barra told reporters in a press conference after meeting Senators Sherrod Brown (Democrat) and Rob Portman (Republican) of Ohio.
      The two senators have been critical about the plan and pushed Barra in their meeting to get a new product in Lordstown, whether that be one of the 20 new EVs GM is planning or move production of the Chevrolet Blazer from Mexico.
      “GM says it expects to build 20 new EVs in next five years. We want one or more of those vehicles to be built in Lordstown, Ohio. That’s where it belongs,” said Portman.
      Barra said during the meeting she'll "keep an open mind but she doesn't want to raise expectations."
      Speaking to Reuters, Barra said it would “very costly” to shift production from Mexico of the Chevrolet Blazer that will begin shortly. But she did mention "GM planned to add other products at U.S. plants next year." Whether that includes Lordstown or not remains to be seen as negotiations with the UAW kick off next year.
      President Donald Trump has been very critical of this plan, saying he could eliminate federal subsidies on electric cars - something that would hurt other automakers more than GM as it's close to 200,000 mark where the $7,500 subsidy begins to fade. When asked about this, Barra gave an indirect answer.
      “I understand this is something that impacts the country and I understand that there is a lot of emotion and concern about it,” said Barra.
      She continued by saying GM wanted to “do the right thing for our employees but also make sure General Motors is strong and lean in the future.”
      Source: Automotive News (Subscription Required), Detroit Free Press, Reuters
      GM Statement: Chairman and CEO Mary Barra on meetings with members of Congress from Ohio and Maryland

      “I had very constructive meetings with members of Congress from Ohio and Maryland. I share their concerns about the impact the actions we announced last week will have on our employees, their families and the communities. These were very difficult decisions -- decisions I take very personally. I informed the members that many hourly employees at the impacted U.S. plants will have the opportunity to work at other U.S. GM plants and that we are committed to working with them to minimize the impact on the communities. I also informed them that all salaried GM workers impacted by these actions are being offered outplacement services to help them transition to new jobs.”

      View full article
    • By William Maley
      General Motors' upcoming restructuring plan where more than 10,000 jobs will be cut and five factories losing products has caused many politicians to become very upset. Yesterday, CEO Mary Barra traveled to Capitol Hill to try an mitigate the social damage by this announcement. Those expecting Barra to backpedal or balk under pressure from various lawmakers on moving production of certain vehicles out of Mexico to plants in the U.S. would come away disappointed. 
      “I want to make sure that the workforce knows that there are limitations and we do have an overcapacity across the country. I understand this is something that impacts the country and I understand that there is a lot of emotion and concern about it,” Barra told reporters in a press conference after meeting Senators Sherrod Brown (Democrat) and Rob Portman (Republican) of Ohio.
      The two senators have been critical about the plan and pushed Barra in their meeting to get a new product in Lordstown, whether that be one of the 20 new EVs GM is planning or move production of the Chevrolet Blazer from Mexico.
      “GM says it expects to build 20 new EVs in next five years. We want one or more of those vehicles to be built in Lordstown, Ohio. That’s where it belongs,” said Portman.
      Barra said during the meeting she'll "keep an open mind but she doesn't want to raise expectations."
      Speaking to Reuters, Barra said it would “very costly” to shift production from Mexico of the Chevrolet Blazer that will begin shortly. But she did mention "GM planned to add other products at U.S. plants next year." Whether that includes Lordstown or not remains to be seen as negotiations with the UAW kick off next year.
      President Donald Trump has been very critical of this plan, saying he could eliminate federal subsidies on electric cars - something that would hurt other automakers more than GM as it's close to 200,000 mark where the $7,500 subsidy begins to fade. When asked about this, Barra gave an indirect answer.
      “I understand this is something that impacts the country and I understand that there is a lot of emotion and concern about it,” said Barra.
      She continued by saying GM wanted to “do the right thing for our employees but also make sure General Motors is strong and lean in the future.”
      Source: Automotive News (Subscription Required), Detroit Free Press, Reuters
      GM Statement: Chairman and CEO Mary Barra on meetings with members of Congress from Ohio and Maryland

      “I had very constructive meetings with members of Congress from Ohio and Maryland. I share their concerns about the impact the actions we announced last week will have on our employees, their families and the communities. These were very difficult decisions -- decisions I take very personally. I informed the members that many hourly employees at the impacted U.S. plants will have the opportunity to work at other U.S. GM plants and that we are committed to working with them to minimize the impact on the communities. I also informed them that all salaried GM workers impacted by these actions are being offered outplacement services to help them transition to new jobs.”
    • By William Maley
      General Motors' announcement to idle and possibly close five plants next year comes around the same time that the company begins their negotiations with the United Auto Workers (UAW). Already, the UAW has said they would go "through every legal, contractual and collective bargaining avenue open to our membership," to try and keep the plants.
      GM's rationale for the move is to improve profitability and help reduce the underutilization of its plants. As we reported last week, GM represents 1 million of the 3.2 million units of underutilized capacity in the U.S. through October.
      We should note that GM did not say they were going to close down the plants. They used the word "unallocated". We'll let The Detroit News explain why.
      Emphasis mine. Under the current contract, GM cannot close or idle any plant unless it is done through the collective bargaining process. By not providing any future products, GM may have found a loophole they can use in the negotiations. But it may have opened up a Pandora's box. 
      "This was long planned through intentional strategic investment decisions and product movement over our objections. They may have kept the news about it quiet, but this was planned and had to be gradually executed long before sales numbers were known,” the UAW said in a statement to the News.
      "GM and the UAW will talk about numerous topics that affect our employees and our business during 2019 negotiations. As always, our intent is to work with the UAW constructively to address our business challenges in a way that keeps the company competitive in these changing market conditions," GM said in a statement.
      Source: The Detroit News

      View full article
    • By William Maley
      General Motors' announcement to idle and possibly close five plants next year comes around the same time that the company begins their negotiations with the United Auto Workers (UAW). Already, the UAW has said they would go "through every legal, contractual and collective bargaining avenue open to our membership," to try and keep the plants.
      GM's rationale for the move is to improve profitability and help reduce the underutilization of its plants. As we reported last week, GM represents 1 million of the 3.2 million units of underutilized capacity in the U.S. through October.
      We should note that GM did not say they were going to close down the plants. They used the word "unallocated". We'll let The Detroit News explain why.
      Emphasis mine. Under the current contract, GM cannot close or idle any plant unless it is done through the collective bargaining process. By not providing any future products, GM may have found a loophole they can use in the negotiations. But it may have opened up a Pandora's box. 
      "This was long planned through intentional strategic investment decisions and product movement over our objections. They may have kept the news about it quiet, but this was planned and had to be gradually executed long before sales numbers were known,” the UAW said in a statement to the News.
      "GM and the UAW will talk about numerous topics that affect our employees and our business during 2019 negotiations. As always, our intent is to work with the UAW constructively to address our business challenges in a way that keeps the company competitive in these changing market conditions," GM said in a statement.
      Source: The Detroit News
    • By William Maley
      This morning, General Motors announced an overhaul of its operations in 2019 which will involve cutting more than 10,000 workers and possibly closing five plants by the end of the year. GM said the cuts should boost cash flow by six billion by the end of 2020.
      “The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future. 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 in a statement.
      The plants up for possible closure are,
      Detroit-Hamtramck Assembly in Michigan - Home to Buick LaCrosse, Cadillac CT6, Chevrolet Impala, and Chevrolet Volt. Lordstown Assembly in Ohio - Home to Chevrolet Cruze. Oshawa Assembly in Ontario, Canada - Home to Cadillac XTS, Chevrolet Impala, and finishing production of last-generation Chevrolet Silverado and GMC Sierra Baltimore Operations in Maryland (Propulsion) Warren Transmission Operations in Michigan Hints of this announcement came out last night when reports from CTV and The Globe and Mail in Canada reported the closure of Oshawa.
      The plant closures also mean a number of models being dropped - including the LaCrosse, CT6, Impala, and Volt. The Cruze will be built in Mexico for other markets.
      It was expected GM was going to make some changes to address the underutilization of its plants. Dara from the Center for Automotive Research says GM represents 1 million of the 3.2 million units of underutilized capacity in the U.S. through October.
      This announcement comes on the eve of negotiations with the UAW next year and Unifor in 2020. The UAW has announced that it will challenge GM's decision "through every legal, contractual and collective bargaining avenue open to our membership."
      The announcement has brought pushback from politicians. Canadian Prime Minister Justin Trudeau expressed "deep disappointment" with the decision. U.S. Senator Rob Portman, a Republican from Ohio express frustration with the possible shutdown of Lordstown.
      One group not disappointed with the news is Wall Street. GM stock rose 6.18 percent to $38.00 per share at the time of this writing.
      Source: Automotive News (Subscription Required), Bloomberg, Reuters, Twitter, General Motors


      General Motors Accelerates Transformation
      Transforming the global enterprise to advance the company’s vision of Zero Crashes, Zero Emissions, Zero Congestion Taking cost actions and optimizing capital expenditures to drive annual run-rate cash savings of approximately $6 billion by year-end 2020 DETROIT – General Motors (NYSE: GM) will accelerate its transformation for the future, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, capitalize on the future of personal mobility and drive significant cost efficiencies.
      Today, 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. These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis.
      “The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”
      Contributing to the cash savings of approximately $6 billion are cost reductions of $4.5 billion and a lower capital expenditure annual run rate of almost $1.5 billion. The actions include:
      Transforming product development – GM is evolving its global product development workforce and processes to drive world-class levels of engineering in advanced technologies, and to improve quality and speed to market. Resources allocated to electric and autonomous vehicle programs will double in the next two years. Additional actions include: Increasing high-quality component sharing across the portfolio, especially those not visible and perceptible to customers. Expanding the use of virtual tools to lower development time and costs. Integrating its vehicle and propulsion engineering teams. Compressing its global product development campuses. Optimizing product portfolio – GM has recently invested in newer, highly efficient vehicle architectures, especially in trucks, crossovers and SUVs. 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. Increasing capacity utilization – In the past four years, GM has refocused capital and resources to support the growth of its crossovers, SUVs and trucks, adding shifts and investing $6.6 billion in U.S. plants that have created or maintained 17,600 jobs. With changing customer preferences in the U.S. and in response to market-related volume declines in cars, future products will be allocated to fewer plants next year. Assembly plants that will be unallocated in 2019 include: Oshawa Assembly in Oshawa, Ontario, Canada. Detroit-Hamtramck Assembly in Detroit. Lordstown Assembly in Warren, Ohio. Propulsion plants that will be unallocated in 2019 include: Baltimore Operations in White Marsh, Maryland. Warren Transmission Operations in Warren, Michigan. In addition to the previously announced closure of the assembly plant in Gunsan, Korea, GM will cease the operations of two additional plants outside North America by the end of 2019.
      These manufacturing actions are expected to significantly increase capacity utilization. To further enhance business performance, GM will continue working to improve other manufacturing costs, productivity and the competitiveness of wages and benefits.
      Staffing transformation – The company is transforming its global workforce to ensure it has the right skill sets for today and the future, while driving efficiencies through the utilization of best-in-class tools. Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making. Barra added, “These actions will increase the long-term profit and cash generation potential of the company and improve resilience through the cycle.”
      GM expects to fund the restructuring costs through a new credit facility that will further improve the company’s strong liquidity position and enhance its financial flexibility.
      GM expects to record pre-tax charges of $3.0 billion to $3.8 billion related to these actions, including up to $1.8 billion of non-cash accelerated asset write-downs and pension charges, and up to $2.0 billion of employee-related and other cash-based expenses. The majority of these charges will be considered special for EBIT-adjusted, EPS diluted-adjusted and adjusted automotive free cash flow purposes. The majority of these charges will be incurred in the fourth quarter of 2018 and first quarter of 2019, with some additional costs incurred through the remainder of 2019. 

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×