GM announces 30,000 job cuts

[Jay]

http://www.canada.com/national/nati....html?id=59302a3d-badf-4f52-ace7-b9cbce1e2738


DETROIT (CP) - General Motors Corp. plans to close nine North American assembly, stamping and powertrain plants - including two in Canada - and cut 30,000 jobs over three years, the world's biggest automaker announced Monday.

The closures will affect a plant in Oshawa and one in St. Catharines, Ont., but most will be in the United States, Rick Wagoner, GM's chairman and CEO, announced.

GM will remove the third shift at Oshawa Car Plant No. 1 in the second half of 2006 and Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.

In St. Catharines, the Ontario Street West powertrain components facility will cease production in 2008.

Canadian job cut numbers were not immediately available.

The other plants that will close are in Oklahoma City, Lansing, Mich., Spring Hill, Tenn., and Doraville, Ga. Wagoner said GM also will close three service and parts operations facilities.

Wagoner said last month the automaker would announce plant closures by the end of this year to get its capacity in line with U.S. demand. GM plants currently run at 85 per cent of their capacity, lower than North American plants run by its Asian rivals. The plant closings aren't expected to be final until GM's current contract with the United Auto Workers expires in 2007.

GM has been crippled by falling U.S. market share, high labour and health care costs and other issues. It lost nearly $4 billion in the first nine months of this year.

The automaker could be facing a strike at Delphi Corp., its biggest parts supplier, which filed for bankruptcy protection last month. GM spun off Delphi in 1999 and could be liable for billions in pension costs for Delphi retirees. GM also is under investigation by the U.S. Securities and Exchange Commission for accounting errors.

Last week, after the automaker's shares fell to their lowest level in 18 years, Wagoner sent an e-mail to employees saying the company has a turnaround strategy in place and has no plans to file for bankruptcy.

 

[Reverend Blair]

RE: GM announces 30,000 j

I hope this doesn't mean they're bringing back the Vega.

 

[MMMike]

I don't understand how any company can negotiate contracts with the workers that lead straight to bankruptcy - with high wages, no flexibility, and huge pension costs. I hope that the union won't come crying to the government to bail out their golden pensions when GM goes bankrupt.

 

[Jay]

Exactly.

 

[Nascar_James]

Yep, here in Oklahoma 2000 GM workers are slated to get the axe when they close the Oklahoma City plant early next year.

GM Plant in Oklahoma City to Close

OKLAHOMA CITY, Okla., Nov. 21, 2005 — Roy Munguia is one of 2,200 workers whose jobs will disappear early next year when General Motors padlocks the Oklahoma City plant. He has worked in this plant for 29 years, but today he learned it will be the first to go.

The gas-guzzling SUVs that Munguia and his co-workers build are not selling like they used to.

"It's a slap in the face," he said about the announced closing.

The pain is double for Pete and Beth Holcomb. They met at the plant 27 years ago, and both still work there.

"It's a shock," Pete said. "I don't think anyone knew this was coming."

It comes as a shock because this facility has weathered layoffs and hard times — even a tornado that ripped apart the plant two years ago.

The state launched an enthusiastic public relations campaign meant to keep this plant up and running.

"They told me this decision was strictly market-based, that it was based strictly on the national and international market," said Oklahoma Gov. Brad Henry.

Effect Felt in Larger Community

The economic impact here goes well beyond the workers. This plant pumps nearly $1 billion into the state's economy every year.

That is about to change.

"There will be a lot of small companies that have been supplying that company for a long period of time that are going to lose that business," said Roy Williams, president of the Oklahoma City Chamber of Commerce.

That includes large companies that supply GM and the mom-and-pop stores in the community.

At Rodeo Cleaners — a local business — owner Suzy Labenne is bracing for the worst. Many of her customers work for GM.

"We're gonna lose customers definitely," said Labenne. "It's gonna be really bad around here."

Munguia worries about his son, who also works at the plant, their pensions and the future.

It's a future that has become uncertain for tens of thousands of GM workers across the country.

 

[unclepercy]

Re: RE: GM announces 30,000 j

I hope this doesn't mean they're bringing back the Vega.

I think it's the Pinto with another name. :wink: I told ya'll a long time ago that the car dealers couldn't sell the big SUVs after gas went up. But - it's gone down so much, $1.47 a gallon. I think it's a temporary thing. Americans like big cars, don't you?

It is a shame about GMC. I heard on the TV today that the new Yukon will sell itself on the look and its gas effeciency - designers have already revolutionized the line of SUVs for GM.

Uncle

 

[Nascar_James]

Re: RE: GM announces 30,000 j

I hope this doesn't mean they're bringing back the Vega.

It is a shame about GMC. I heard on the TV today that the new Yukon will sell itself on the look and its gas effeciency - designers have already revolutionized the line of SUVs for GM.

Uncle

The Yukon is indeed a pretty attractive vehicle. If I had to switch to GM from my current Ford, I would consider the Silverado (with the Duramax Diesel engine). The double cab diesel pickup makes a nice family vehicle.

 

[no1important]

RE: GM announces 30,000 j

The problem is the Domestic auto companies never really kept up with fuel economy and even quality of the Japanese imports. I also think the big SUV fad is pretty well over especially with gas so high. 93.7 cents a litre here today.

If I were to buy a large vehicle I would try and get a Toyota Highlander Hybrid.

 

[jimmoyer]

By the way the Japanese are worried.

World trade more than any governmental action will influence the decision to divorce ourselves from oil.

 

[Jo Canadian]

 

[tracy]

Re: RE: GM announces 30,000 j

I hope this doesn't mean they're bringing back the Vega.

I think it's the Pinto with another name. :wink: I told ya'll a long time ago that the car dealers couldn't sell the big SUVs after gas went up. But - it's gone down so much, $1.47 a gallon. I think it's a temporary thing. Americans like big cars, don't you?

It is a shame about GMC. I heard on the TV today that the new Yukon will sell itself on the look and its gas effeciency - designers have already revolutionized the line of SUVs for GM.

Uncle

$1.47? I'm paying $2.50 a gallon. I don't like big cars and am glad my car gets decent gas mileage. I would never pay to fill the tank of an SUV gas guzzler, though there are always a few Hummers in the neighbourhood so some people must be making a lot more money than me

 

[unclepercy]

Re: RE: GM announces 30,000 j

I hope this doesn't mean they're bringing back the Vega.

I think it's the Pinto with another name. :wink: I told ya'll a long time ago that the car dealers couldn't sell the big SUVs after gas went up. But - it's gone down so much, $1.47 a gallon. I think it's a temporary thing. Americans like big cars, don't you?

It is a shame about GMC. I heard on the TV today that the new Yukon will sell itself on the look and its gas effeciency - designers have already revolutionized the line of SUVs for GM.

Uncle

$1.47? I'm paying $2.50 a gallon. I don't like big cars and am glad my car gets decent gas mileage. I would never pay to fill the tank of an SUV gas guzzler, though there are always a few Hummers in the neighbourhood so some people must be making a lot more money than me

My daughter has spent 3 weeks in CA on two different trips, and she says everything in Calif. is much more expensive than in Texas. Especially houses.

I like a big car because I have a bad back, and that bending over and plopping down into a low car hurts. And you have to "roll" out - my daughter has a TransAm/so you know how THEY are. Size is important. :lol:

Percy

 

[no1important]

Toyota may overtake GM in 2006

A teaser:

Toyota Motor Corp. may well become the world's largest automaker next year, as it slowly cuts into the U.S. and world markets of General Motors.

But Toyota president Katsuaki Watanabe shrugged off such accolades at a speech at the company's headquarters in Nagoya, Japan on Tuesday, saying his company just provides what the customer wants.

GM's U.S. market share fell to 26.2 per cent in the first 10 months of this year, compared with 33 per cent a decade ago. And GM has been losing a lot of money, $1.6 billion US in the third quarter, with more losses expected by year end.

GM is restructuring its operations in a bid to keep up with the competition. It plans to close 12 plants by 2008 with the loss of 30,000 jobs, or 27 per cent of its North American manufacturing payroll. [/teaser]

Maybe if GM built quality vehicles, they would not be in the mess that are in. Toyota is #2 Automaker right now aand will be #1 soon, so they are obviously doing something right.