Filed under: Trucks/Pickups, Hirings/Firings/Layoffs, Plants/Manufacturing, GM
GM considering cuts at Pontiac
Stick with us on this one, because the names might be a bit confusing. Because of less-than-expected demand for its full-size pickups, and despite heavy incentives, GM is considering cutting 500 workers at its Pontiac plant. And you didn't even know Pontiac had a full-size pickup in its lineup! Well, it doesn't, obviously. The General is expected to lay off those 500 workers from its Pontiac Assembly Center. That is, the Pontiac, Michigan plant where they build the recently redesigned Chevy Silverado and GMC Sierra pickups. As good as they may be, they haven't exactly taken off in the marketplace. Although one could make the argument that no full-size truck is faring particularly well in this sales climate.
GM officials should be meeting as we speak to make a decision about the fate of 100 full-time workers and about 400 temporary employees. The actual layoffs would probably happen in September if approved. The full-time employees will likely be relocated, if possible. The temps, as is usual, wouldn't get any severance pay or benefits. By eliminating those positions, production would drop by about 17 percent.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
Davido 6:47PM (7/23/2007)
I suspect that the market for work trucks is holding. After all, if you need a truck for your farm, ranch or business, then there aren't many substitutes. But I wonder how many folks are still buying full-size trucks just to drive to work and haul stuff home from Menard's.
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motorman 6:50PM (7/23/2007)
a lot of PUs were bought as second cars and now those buyers are going to fuel efficient cars because the did not need a PU. it was just a cool thing to do,drive a PU with leather seat,top of the line stereo and big wheels. buyers who need PUs will still be buying BUT in smaller numbers and less fancy equipment.
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Rambo 9:44PM (7/23/2007)
Pickups have sold well consistanly for decades. The housing down turn might affect sales a bit but a truck owner is drawn to a truck because of its flexability and American identity. PU truck sales are the most stable market in the industry.
SALES THROUGH JUNE '07
F-SERIES.............DOWN 11% (352,438)
SILVERADO..........DOWN 02% (310,896)
RAM.....................UP 01% (185,257)
Onefastgta 6:55PM (7/23/2007)
Wow thats a stupid move. I bought my truck because I rented one on a trip and loved it so much i had to have one.
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Guenther 7:00PM (7/23/2007)
Wow-with clever banter like that about Pontiac Assembly and the brand Pontiac makes it almost amusing to hear about more layoffs in the neighborhood. Was that really necessary? As much as I agree that GM has too much capacity, and in the wrong places to boot, it's pretty scary in the D right now.
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The Other Bob 8:33AM (7/24/2007)
No doubt.
Maybe another clever lesson would be to mention that the City of Pontiac is the namesake for the brand Pontiac, which was once a subsiderary of the brand Oakland. Pontiac City is in Oakland County. Wow, aren't I a history genius.
Kent 8:10PM (7/23/2007)
GM overdid it, seriously, with the fender buldges on these trucks. A little subtlety would have gone a long way. The current F-150 seems much less overwrought.
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3cubedminus3squared 8:27PM (7/23/2007)
Yeah, I didn't like the fender bulges either but I got used to them.
The things I don't like are the front lower valence and that bulge in the tailgate.
Travis Rassat 8:38PM (7/23/2007)
I agree - I've had a hard time warming up to this new design. I was hoping the trucks would look more like the Tahoes and Yukons, as that is a very nice looking vehicle in my opinion, but I guess that wasn't "big truck" looking enough.
From my understanding, the slow housing market has had a lot to do with slow truck sales, although I'd be curious to see the light truck vs. heavy truck sales numbers to see if they are equally affected. That might indicate if it's the businesses or the consumers who aren't buying.
JW 8:58PM (7/23/2007)
"Because of less-than-expected demand for its full-size pickups, and despite heavy incentives". Bias? Carelessness? What do you mean "despite heavy incentives"?
GM's incentives on it's fullsize trucks are the lowest in the industry. If you click on the link in YOUR sentence, that story even says that there is only a $1500 rebate on Regular Cabs and just $2000 on Extended Cabs, while Toyota is giving away more than $5000 per truck. The REAL article states as much, "Beyond competition from Toyota, Ford Motor Co. and the Chrysler Group's Dodge division are offering incentives of up to 20 percent off the sticker price. Even with an extra $1,000 on the hood of GM's pickups, the manufacturer's incentives remain well below the competition."
That first sentence could stand to lose the word "and". It might make the meaning more clear, though the words "heavy incentives" are clearly still inaccurate. I'm not sure why you guys let inaccurate, misleading and clearly biased commentary get through. It really reduces your blog to nothing more than a list of stories with meaningless wit as an intro, rather than news and discussion.
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Barney 11:37PM (7/23/2007)
I think Toyota and Nissan entered the market to late. The pickup truck is going away with the SUV market. GM, Ford and Dodge will be producing a lot less of them and Toyota & Nissan will be struggling as well. They will become a niche market and hopefully back to being a work vehicle.
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Max Merak 11:54PM (7/23/2007)
Market adjustment. Makes sense.
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tbirdkatz 12:07AM (7/24/2007)
There hasn't been as much of a demand for their new pickups because pickups are friggin expensive now. Most people I know who drive pickups just drive them for their looks and rarely use the bed. With gas being as much as it is and the fact that a decently equipped crewcab pickup going for $35,000+, alot of people are switching to smaller trucks and SUVs.
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carjunky-o 12:42AM (7/24/2007)
Ha! The writer actually refers to the biased comparison Autoblog wrote about GM trucks and the competition. That is ridiculous. Incentives??? What the hell is wrong with you, Autoblog? You made the Tundra look like a JOKE. I'm not saying I like it better, but you did not respect it as legitimate competition. I am tired of this site. GM has screwed up, no matter how hard to believe that can be for you guys.
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cowboy bob 12:55AM (7/24/2007)
GM's new design is bulky, and just doesn't flow well. Add to this that dealers seldom have baseline models on the lot, with only ones "decked out" (read high sticker) available. While I agree that some have used pickups as cars, some of us do need a truck. My truck plows driveways, hauls haywagons, pulls a horse trailer, and still runs to Walmart. I want a good looking work truck, not some leather seated, fully carpeted, optioned to the hilt glitter machine. Give me my old '98 stripper one ton with my big block any day. Best part is this beast is paid for, works for it's supper, and still looks new. Try to find a replacement like this on a lot.
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Aki 2:23AM (7/24/2007)
Any truck related news story has some amusing comments. One is blasting the Autoblog writer for being biased against Tundra, another for being biased against GM. Maybe, just maybe, people are reading into things based on their own bias?
And 500 workers is nothing to freak out about. Considering the general downtrend w/ trucks, GM seems to be doing quite well. F150 sales have been plummeting, and Toyota just can't get the Tundra to take off, however much cash they dump into those annoying ads.
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Stoneman 8:24AM (7/24/2007)
I drove a 2007 Silverado a few weeks ago. It really impressed me. This is coming from an old school truck guy....who now drives a Subaru Impreza. I forgotten how bouncy a ride those trucks can be, but overall it was the best I had driven in a long time - for a truck.
:)
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