GM, Ford job cuts closing in on 50% in U.S. - Chrysler not far behind
In 2002, General Motors had 177,000 employees in North America. By the end of 2008, that number had shrunk to 93,000, or 49% fewer employees than it had just six years earlier. GM plans to further cut its white collar workforce by 3,400 by May of this year, and the General is looking to cut 10,000 white-collar posts globally by the end of 2009. That will make nearly 100,000 GM jobs lost; enough people to fill the University of Michigan football stadium.
Ford and Chrysler have also resorted to heavy cuts in the face of shrinking market share and an industry-wide slowdown. Ford has seen its US workforce shrink to about 65,000 workers; 44% fewer than the Blue Oval employed five years earlier. Chrysler was leaner than Ford and GM were five years ago, yet they've still shed 32,000 jobs during that time. Chrysler now employs 56,600 employees, and the Pentastar has a package out to all of its hourly workers.
It's amazing to think that by June of this year, Detroit automakers will have shed nearly 200,000 jobs in under six years. As crazy as that number sounds, we don't think anyone will be surprised if a lot more workers lose their jobs before this year is over.
[Source: bnet]
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Reader Comments (Page 1 of 3)
macscrubby 10:07AM (2/13/2009)
Thanks NAFTA!
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Jake 12:41PM (2/13/2009)
While you're at it, also thank excessive corporate income taxes, ridiculous pro-union legislation, corrupt politicians, etc.
I would expect that as technology improves, that a car-maker can manufacture the same number of cars with fewer people.
Polly Prissy Pants 12:49PM (2/13/2009)
If by "excessive corporate income taxes, ridiculous pro-union legislation, corrupt politicians" you mean exceptionally poor management overseeing the design and production of unappealing automobiles then I'm right there with ya!
A-style 1:04PM (2/13/2009)
Chapter 7 here we come!!!
Go USA
Jake 1:06PM (2/13/2009)
I'll see you poor management, but when companies cannot complete globally because of our high corporate tax rates, silly regulations, pro-union laws, etc. That's called killing the goose that lays the golden eggs.
I work in the tech industry and to compete globally we just can't manufacture here except in very low-volume high complexity situations where the skill of the workers is paramount. Why? Because our competitors who manufacture in Eastern Europe and SouthEast Asia don't pay the 34% corporate tax rate that we would have to. That's a large chunk of money. How can you compete like that when you competitor can undercut you? You can't, so you out-source.
In response to Enron, our stupid govt. passed Sarbanes-Oxley to punish all the companies that didn't cook their books and obeyed the laws. Result, the number of companies actually incorporating and going public here is going down drastically because of the draconian reporting and accounting laws.
In many states, union jobs are protected by law. You can't hire anyone else and you can't get rid of them, even if they slow-work the hell out of your job and you are forced by law to bargain and accept arbitration to their demands. Global competitors don't have this boat anchor around their neck.
If we want jobs to stay here, we need smarter government and we won't have that anytime soon from the left or the right.
jpm100 2:20PM (2/13/2009)
"mean exceptionally poor management overseeing the design and production of unappealing automobiles then I'm right there with ya!"
GM was the #1 retailer of autos that whole time. They still sell way more SUVs than anyone sells hybrids. Save your "poetic eco-justice" for the coffee shop.
Jake B 3:12PM (2/13/2009)
It is true that Corporate Tax is strangling America. In Ireland several years ago they lowered their Corporate Tax rate to 12.5%. You even get tax credits in Ireland for R&D. As such Ireland now has a flourishing Corporate Economy. What, you thought Nancy Pelosi's private jet would pay for itself?
refugee7 5:36PM (2/13/2009)
I love you Jake. Completely agree.
Although this statement is a little idealistic, economics says trade benefits all participants. Also the fact the it is weeding out the weak companies. That also involves what companies are suffering due to a poor government. They have to go somewhere else to be able to compete, it is not their fault.
refugee7 5:38PM (2/13/2009)
And you know what? That is the only reason why I wanted McCain as president. Lowering corporate taxes is fundamental to the American economy. If he reneged on everything but that, I would have been happy.
Raising personal income tax is fine if corporate taxes are lowered. This is way to generate jobs.
Flashpoint 10:11AM (2/13/2009)
Take it from a Chrysler 300 owner. Chrysler NEEDS TO DIE.
Chrysler has NOTHING on the drawing board so if they were to end right now, it wouldn't make a big difference. GM needs to absorb them because as it stands, they are a bottomless black hole of wasted money.
GM and Ford will be fine once they have better management but as it stands, there is no room for 3 automakers when America is getting shipped stuff from 20 different countries.
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ItGuy 10:17AM (2/13/2009)
Ford already has great management. Have you not seen their new stuff and what's in the pipeline? Awesome. 5 years ago I would have written Ford off. Now I'm seriously thinking Ford for my next car.
216 10:21AM (2/13/2009)
I would have agreed, however now Chrysler has a chance with their Fiat rebadges coming and their 200c concept (which shows they could move forward with new cars that people would want)
Level 5 10:21AM (2/13/2009)
From one Chrysler owner to another, I agree 110%. I've owned nothing but chryslers since the 90s, and my father has owned nothing but Chryslers since the 60s. My grandfather has always been a Chrysler owner as well. We as a family, loved them in the utmost.
As it stands, the period from 2001 to the present, Chryslers designs, innovations and build quality are at what I, and a great many others, see as one of the company's lowest point. Look at the lineup? Current Sebring/Avenger? Blah. Caliber/Compass? Outclassed. The only thing going for Chrysler is the LX based vehicles, they seem to have some level of customer satisfaction. I don't see anything, anything, at all that would make me buy another Chrysler after I sell my 2004 Sebring, which just crossed over 110k with not a major issue. Sad part? My Sebring's story sure as hell isn't typical.
Frank 11:15AM (2/13/2009)
"Chrysler has NOTHING on the drawing board so if they were to end right now, it wouldn't make a big difference."
http://www.allpar.com/mopar/phoenix-engines.html
http://www.allpar.com/trucks/jeep/2011-cherokee.html
http://www.allpar.com/SUVs/dodge/durango-2012.html
http://www.allpar.com/cars/concepts/electric.html
http://www.allpar.com/cars/concepts/chrysler/200C.html updated (02/11)
http://www.allpar.com/model/upcoming.html
@Flashpoint, Read. Learn.
Don't believe what you hear at certain blogs that profess to have the "Truth" about cars.
Frank 11:51AM (2/13/2009)
Oops, I forgot one...
http://www.allpar.com/cars/ly/index.html This is about the upcoming replacement for the current gen Charger and 300 (scheduled for 2010).
From the Link above, the targets for the new full sizes.
"Compared with the current LX series, the next generation — currently also termed LX but previously tagged as LY — will be:
Aerodynamics. Less boxy. Not back to the extreme cab forward, but enough to improve noise, fuel economy, and make the cars more elegant. Charger will have more “retro cues” like the Challenger.
More fuel efficient.
Far better aerodynamics (Styling now reports to Engineering’s Frank Klegon)
Modified axle ratios
Phoenix engine — the 3.6 liter is supposed to provide 280 hp with better mileage than the current 250 hp 3.5 liter — more quietly than the Toyota V6.
More gears in the transmission (an eight-speed is being studied).
Better interiors. The next generation of full-sizers will set the standard for the rest of the brands in the divisions.
Comfort features. New entertainment systems and driver comfort options.
Improve on all-around performance. "
The Luigiian 12:33PM (2/13/2009)
Flashpoint, in some ways I disagree with you, in others I agree with you. I agree with you in saying that right now Chrysler is a black hole of money. It can't sell off all of the cars in its lots, its vehicles are generally unpopular among the majority of people (especially cars like the Avenger and Sebring) and they have numerous problems, especially interior quality which is improving but isn't improving quickly enough to keep apace with the other manufacturers.
But I disagree with you in saying that it needs to die. Chrysler is a shamed company, but it only got there because of its horrible relationship with Mercedes-Benz. The current situation at Chrysler is an exception to the rule. Prior to Benz, the Neon was one of the top-selling compacts in the country, and Chrysler itself was one of the most popular automakers in America. It reinvented its fullsize trucks to be competitive with Ford and GM, and released the 300C-which, although it isn't great, at least has some semblance of interesting styling ideas and attractiveness. I would hazard to guess its failures had more to do with the cheapening Benz likely insisted on than simply Chrysler's own failures.
Right now, they're trying their damnedest to get out of their situation. It looks awful for them right now, but I'd be willing to give them half a chance.
JOe 10:15AM (2/13/2009)
This is really troubling news. It is my hope that they don't continue to slash costs. What will we do with all the unemployed people?
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Level 5 10:25AM (2/13/2009)
@216,
I thought the 200C Concept showed potential. However, I think we'd be kidding ourselves if we thought it would really see the light of day without it being ruined in prep for production.
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jamie 10:59AM (2/13/2009)
GM offers buyouts to all 62,000 hourly workers
http://news.yahoo.com/s/afp/20090212/ts_alt_afp/uscompanyautogmcuts
BTW, GM says no plan to sell stake in China venture
http://www.detnews.com/apps/pbcs.dll/article?AID=/20090213/AUTO01/902130411/1148
"There is no truth to the story that we are planning to sell Shanghai GM shares to our partner SAIC," said Henry Wong, a Shanghai-based spokesman for the company.
GM has said that the Hummer truck brand is up for sale, while it is reviewing Saturn for possible takeover by the dealer network. Saab also is for sale, and Pontiac likely will be pared back to just one or two performance-oriented models.
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Eric 11:05AM (2/13/2009)
Actually, you need more like 106,201 (soon to be 108,000+) to fill Michigan Stadium.
Go Blue!
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