• May 30, 2009
According to the Detroit Free Press, the 14 plants that General Motors is expected to announce for closure on Monday was going to be 16 plants until the UAW got its way on Capitol Hill. The union charged GM with closing factories, but instead of a commensurate reduction in production, GM was moving some of the manufacturing elsewhere, specifically China and Mexico.

GM said it will produce 1.83 million cars in the U.S. 2014 as opposed to 2 million today, and it would get one-third of its production that year from overseas. That one-third would notably be small cars, so much in play lately for every reason. The UAW suggested it would be amenable to "innovative labor agreement provisions" in order to make small car production work for GM domestically.

In that case it isn't Mexico or China that will suffer, but Canada. Our northern neighbor is expected to lose 23.

For now, an assembly plant and a stamping plant have been spared from the initial list of U.S. closures. Another four plants have been designated "stand-by locations" that will come on line in case of a steep rebound in auto sales.

[Source: Detroit Free Press]


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  • 34 Comments
      • 5 Years Ago
      That plant in the picture is the Lansing Delta Township plant where they build Acadias, Enclaves, and Outlooks. That plant was just built a few years ago before those vehicles went on sale. No way that plant will be shut down. It's practically GM's most state-of-the-art facility.
      • 5 Years Ago
      GM is finished. There is no way they can survive with the UAW and the Congressman from every disctirct with an auto plant calling the shots.
        • 5 Years Ago
        Not really surprised at the comments. Apparently this is the base-level intellect of the rethuglican party: stuck on stoopid.
      • 5 Years Ago
      Interesting! The Obama Labor Party and the UAW running the show. In effect, the livestock running the farm.
      Survivial or maintaining the labor stranglehold, now there is an interesting choice for a government bought and paid for by organized labor!
      The only question is how many ways they can spin this to continue to lay the blame for everything on the Bush administration and the Republicans (who haven't had control of congress (who has the responsibility for oversight) for years)?
        • 5 Years Ago
        harlenx6, how much do you drink to fry THAT MANY brain cells??? Any company that sees sales drop 40% a month for a year straight (concentrated primarily on their profit-cows: SUVs) is going to end up in bankruptcy. The reason GM is where its at now is because of drunken fools like you. Not even slave labor would've saved GM from its horrific management decisions, where they focused more and more on short-term profits with large inefficient models, even as they watched their foreign competition concentrate & invest heavily on smaller, more efficient vehicles. In 2006 non-union TOYOTA workers were making more than the UAW, so what does that say about your petty argument? Now that the Obama admin is mandating a move toward efficient models, and backing that up with CAFE standards, you'll see GM come out much more viable and competitive. A take-over like this is really the only thing that could have saved GM in the end...there are probably still to many harlen6x's on the company's board to make the kind of drastic reforms necessary to make them viable over the next decade.
        • 5 Years Ago
        Epilogramer:
        I did not say unions were evil, but they have outlived their usefulness and are being squeezed out by global competition. What I said was the reorganization of GM under these circumstance would be very interesting, and I think that is a true statement. GM is the home team and I wish them all the luck, but business as they have conducted it in the past is a plan for failure. Once the most powerful entity on earth, they have squandered their inheritance, and now must file chapter 11. In fact I will say either the union goes, or they both go.The UAW-GM model is a failure, and will continue to fail. It's not that we don't like unions, but they are simply detrimental in the global competition for auto sales. The US no longer has an edge that will allow it to support the GM-UAW model which has been consistently getting their ass kicked by the Asians for decades.
        By the way, do you know what business unions are in?They are in the dues business.
        • 5 Years Ago
        PJ; That makes sense to me. You made good points and refrained from childish personal attacks like the peanut gallery did.
        • 5 Years Ago
        Ken Stamper, I kind of agree with you.
        • 5 Years Ago
        Right, where does new ownership get off telling GM how to run its business? Just because they have ownership gives them the right to make decisions? Inconceivable.
        • 5 Years Ago
        You have no idea what concessions were involved to make this decision. Please refrain from further making yourself look like the fool you are.
        • 5 Years Ago
        Polo:
        Resorting to personal attack is childish. Your argument lacks substance and your logic is flawed.
        The facts are GM is bleeding billions, can't make a profit, and this is proof their business model is a failure. These facts cannot be argued. At this point laying blame is futile. You can't change the past that has seen the most lucrative and powerful entity on earth squander their inheritance to the point of bankruptcy. It will be interesting to see if they can make reorganization work. I hope they do, but they are carrying a lot of inertia in the wrong direction. If they pull it off I'll be the first to give them credit, but it is going to be a formidable task. Their problem is competition from the Asians who have consistently gained market share while GM has consistently lost market share. In other words GM-UAW has consistently gotten their ass kicked for decades, and I don't think that can be argued.
        • 5 Years Ago
        Rogue G:
        How typical of the politically correct to attack personally instead of any substantive discussion. I made my point with a question that could have been answered. You merely revealed your lack of substance with a personal attack. You contributed nothing. You are probably very young, because that is a reaction of immaturity. That is not an attack, just an observation. I didn't count, but how many ways did you spin the subject to make sure all blame rested with the Republicans as I predicted.
        • 5 Years Ago
        How convenient for you that the Democrat's control over Congress just so happened to qualify for 'years' with only 2 under its belt? Or have we so quickly forgotten the previous 6 years the Republicans had before that, while Bush was still prez?

        You're just another slack-jawed mouth breather, so go back to playing the victim in an economy that your Republican party is responsible for in its entirety. DIAF!
        • 5 Years Ago
        The brutal fact is in this global economy GM and all auto manufacturers have to compete. They are competing with the Asians. The Germans and French are doing it with leading technology. How are the US auto makers competing? The Asians are formidable competitors and the unions are just getting squeezed out. There is no room in global competition for a UAW type union driving production costs up. The results are apparent, GM and Chrysler in chapter 11. Labor blames it on management. Management blames it on labor. The facts are that this business model can't successfully compete in the global market unless it has leading technology, and we no longer do. I catch hate mail from union supporters, but they are a dying breed. For business it is matter of survival. The unions are through. They no longer have any leverage over the businesses they are killing.
        • 5 Years Ago
        How about this for a non-personal attack? GM buried themselves under this mess without any government help. They were non-competitive. They have voluntarily taken huge government loans to save themselves. Given the tough conditions the the government has imposed on them, they are finally making the kind of decisions they were too chickens**t to make on their own (closing plants, cutting UAW/CAW wages and benefits, eliminating non-performing brands, bothering to build actual cars instead of giant SUVs, etc.) Now, as the new owners, damn right Obama is going to have a say in what they build. Tough nuts. GM has no one to blame but themselves for the situation they are in, and if free-market ideology has made you too blind to see that the government is literally their only chance to survive, well, sorry.
        • 5 Years Ago
        GM's problem, ever since the 1980s, is that it's been far too large, sprawling, and uncoordinated an organization for the shrinking market share it commands. There was only one way they were ever going to survive: by reeling it all in and trimming their manufacturing, product portfolio, and dealer network down to a size commensurate with their sales.

        The Auto Task Force catches sh*t for taking the actions necessary to get this accomplished, which necessarily means closing operations and putting people out of work. But GM (or a new owner, if they'd filed C11 on their own) would've had to do it sometime; we all know it's the only way they were ever going to survive.
      • 5 Years Ago
      Like burying yourself under crap messages will hide your crap spamming.

      Moderator, please pull this clown's messages and username.
      • 5 Years Ago
      Harlanx6, take it easy on them.

      Its hard when you have been brought up in a public school system, not taught anything other than the marxist agenda doctrine.

      Its no wonder the only comeback they have is a liberal talking point, disguised as a personal attack, with no substance what so ever.

      Plus its Saturday afternoon, no more cartoons to occupy their feeble little minds.
        • 5 Years Ago
        "Its hard when you have been brought up in a public school system, not taught anything other than the marxist agenda doctrine.

        Its no wonder the only comeback they have is a liberal talking point, disguised as a personal attack, with no substance what so ever."

        And what is your post other than a very typical Limbaugh-rethuglican talking point disguised as a personal attack, with no substance what so ever? The cognitive dissonance on the right is clouding their comprehension and perception skills.
      • 5 Years Ago
      Maybe GM does not want to save itself. Maybe the plan is to just let it die a slow death.
      • 5 Years Ago
      After reading several of the comments,I decided
      • 5 Years Ago
      Isn't it time quality small cars were built in America, Honda, Toyota and Nissan have been doing it for years, wake up Ford, GM and Chrysler, and I mean built in America, Not Canada or Mexico.
      AMERICA.

      Id like to see all Chrysler and GM dealers stay open, these closeures are disgusting.
        • 5 Years Ago
        It would be better if you actually found out what was built in the US, and wasn't........... before you spout drivel.

        The Ford Focus is built at the Wayne Assembly Plant, in Michigan. The new Focus, coming out next year, will be built at Michigan Assembly Plant, which is across the street from Wayne. Other C3 platform vehicles will be built at Louisville. Before the 2005 model came out, it was built in Hermosillo Mexico.

        The Chevy Cobalt is built at Lordstown Ohio.

        Some Honda Civics are built in the US.

        The Nissan Sentra is NOT built in the US.
        The Toyota Corolla is NOT built in the US.

        These are all C-class cars.

        There is NOT ONE B-class car, currently being built in the US. We will see what GM does with OUR money (which means they won't have to make a profit on it). However, the Aveo is made in Korea.
        • 5 Years Ago
        Forget the unnecessary Insults and tell me about the Benefit?

        Im tired of American Brands being imported into the Usa, they pose as built in America when they are not, I have no beef with especailly Canada or Mexico but Im tired of importing cars and them being sold as American cars while we bail out car makers with tax dollars and close car dealers.

        Lets add Korea and China to the list, GM imports motors from China. Soon they will import cars.
        • 5 Years Ago
        Depends what you call a small car. The Honda Fit, Toyota Yaris and the rest of their classmates are ALL built outside the US.

        Personally I see no distinction between building vehicles in Canada and the US or even Europe for that matter. North America has been a shared market for automobliles since the dawn of time. We all have similar labour and environmental standards. Our Canadian and Ontario governments are even sadly shareholders in GM and Chrysleriat.

        What I have a problem with is vehicles being built in China, Japan and Korea for sale in North America. My main problem is that those markets are not open to imports resulting in protected home markets for their automakers. China and Korea also don't have the same environmental and labour standards we have so it isn't anywhere near a level playing field. It is one thing to buy small ticket items from China but something else to start buying cars. That is a massive transfer of wealth out of our developed economies that is going to bite us in the rear.
        • 5 Years Ago
        Judy, I really couldn't agree more with your third paragraph.

        I see gas prices rising again, I think the need for small QUALITY
        cars will increase, GM seems to be on the slow road again, all talk,
        little action, if American workers were building Quality small cars
        Id buy one, at this point I can only buy quality small cars from the
        Japanese makers and that's OK, obviously;they want my business.

        Id sooner support an American Brand if possible, especially in
        today's economy, Id like to buy an American car built by American
        workers, not built by some communist country with all the Issues you
        spoke of.

        I believe China will rule the world one day, it will be our fault for
        supporting them, We should have boycotted them many years ago when
        wally world and such stores jumped ship, 30 years ago we all could buy
        American made TVs, today its a totally different situation, 20 years
        from now most people could be driving Chinese cars, maybe they will
        be the only ones left producing cars for the masses, of course it
        might have an American brand name on it. Huhhhh

        Small to me is Fit, Yaris, Fiesta, Ka, Fiat 500 etc.

        Canada and the USA do have similar labour and environmental
        standards, but healthcare is where it stops, Heath Insurance costs
        are killing America, we NEED a single pay system, In essence the same
        exact healthcare system without the Insurance industry overheads and
        dictatership, That's where Canada has an advantage as I see it.
        • 5 Years Ago
        your other drivel aside, we sell in Canada and Mexico to the benefit of the US.
        • 5 Years Ago
        Gloria, save me the stupid insults, its unnecessary and shows little class, it wasnt even original, It would be nice if you and some others could respect other people's views or not bother posting, we cant expect to agree on everything but that gives little reason to insult me, lets try to be constructive.

        I didn't need the education on where some cars are built, I've worked in the car industry for 30 years.

        The Focus isn't exactly what I would call a high Quality car, its more like American average in my opinion, believe me I know the difference, Ford have sold plenty there is no denying that, but still average is average, notice I didn't say poor, its certainly not a poor car, if the bean counters allowed a little more money that could be a great car, unfortunately that money is spent on ex-employees and healthcare Insurance.

        I wont comment on the Cobalt except to say I like the Focus more.

        By Quality l mean fit and finish of the whole vehicle, pay close attention to the bodylines, the plastics and paint, listen to the sound of the power door lock motors for instance, the cheap ones sound loud and awful...

        Hopefully the upcoming Fiesta and the next Focus will be high Quality products, I have high hopes for them both, unfortunately the last I heard the Fiesta will be built in Hermosillo, that's not exactly America in my opinion, still it might be a high quality product and Id be happy to buy one if it was.

        Quality is part of the design process, design and costing, I know American workers can build great cars, Id just like to see it happen with small cars, I think GM, Ford, Chrysler and Americans would reap the rewards.
      • 5 Years Ago
      funny that the car shown is a non-saved vehicle (Saturn), but I expect they build them all on the same line.
      • 5 Years Ago
      "Republicans emphasize the role of free market decision making in fostering economic prosperity. They favor laissez-faire free markets, economic liberty, fiscal conservatism, personal responsibility, and policies supporting business"

      USA is the only country in the world who is proud of loosing all of their industries. I was listening to a Repulican strategist at CNBC yesterday, Jack Burkman and here's what he said:

      "Bailing out Chrysler in 1980 was a mistake. The UAW are a bunch of ingrates; they should have votes 100% for the new contract. There are absolutly no reasons to bail put the US auto industy. It should have been outsourced offshore many years ago."

      The videos are available on CNBC, if you don't believe me.


      The Republican never ever listened to their own Auto industry. Japan, Korea, Germany all have an Auto minister. Not USA. I just wish that this tragedy is the beginning of a continuous relationship between Government and the Auto Industry. Without it, the USA is not playing on a level field.


      The only thing I do not agree with in all of this UAW ratified contract is that the actual workers should have gotten a pay cut, same as their salaried counterparts. The burden of those past excesses will be paid by the new hirees, which I think is ludicrous
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