Autoblog

FOLLOW UP: Tony Cervone, a GM spokesperson, has told Bloomberg that HUMMER is the only brand the General is considering selling or closing.

The Wall Street Journal is reporting that General Motors is looking to cut thousands of white-collar jobs and sell, or stop production, of some if its brands. The General has supposedly set 2010 as a target for its return to profitability, but the automaker has never announced any details on how it plans to achieve that goal.

GM's management team will be meeting with the board early next month to discuss raising additional cash, and that could mean seriously pruning GM's bloated brand portfolio. HUMMER is supposedly already on the block, but Chevrolet and Cadillac – brands at the core of GM's business – are likely safe from the ax. However, Buick, Pontiac, Saab and Saturn, which haven't fared well during the biggest U.S. sales slump in 15 years, could possibly be sold or killed completely.

While it deserves note that all of this information comes from unnamed WSJ sources, GM's recent stock plunge and abysmal June sales numbers means something has to be done, and quick. If that entails cutting underperforming brands, so be it -- nostalgia be damned.

[Source: WSJ (Sub. Req.) via Reuters]

Click above for a high-res gallery of the Toyota Tundra

The full-size pickup truck woes continue to worsen, leaving even mighty Toyota little choice but to slow production of its Tundra model. In fact, Toyota's brand new plant in San Antonio that was built just for the Tundra will be shutting down a total of 14 days between now and October. Full-time workers at the plant will be able to use vacation days, take the time off unpaid or find something else at the plant to do while the assembly line is halted.

Unfortunately, temp-to-hire workers aren't so lucky. Two-hundred employees who were hoping to land full-time positions at the plant will be laid off this summer. Toyota spokesman Mike Goss says, "We have a very long-term view of that factory in Texas. We're trying not to overreact. We're trying not to shut it down." Whoa... back up. Shut it down? We hadn't heard any such thing until it was spoken by Goss. Sounds like things are just as bad for Toyotas with beds as they are for pickups from Detroit. Thanks for the tip, Mike!


[Source: AP via My San Antonio]

Blame the plunging greenback. Less than a week after BMW announced the expansion of their U.S. Spartanburg plant, we are getting news from Germany that the weak dollar is making it increasingly difficult for the German automaker to keep production on their soil and that layoffs are imminent. Ernst Baumann, BMW's head of personnel, said 5,600 jobs in Germany will be cut by the end of the year. When you add that to the 2,500 positions already eliminated, the total represents about 7.6-percent of BMW's workforce.

While the layoffs are bad news for German factory workers, the flip side of the coin may benefit their American counterparts. With the value of the Euro sitting at more than $1.50 at current exchange rates, European automakers are finding manufacturing on U.S. soil more attractive (read that "cost effective") than ever. BMW manufactured about 155,000 vehicle on U.S. soil last year. By 2012, that number is planned to approach 240,000 cars. BMW sales worldwide reached 198,628 in January and February, up from 191,357 the same period last year. With the new BMW 1 Series and BMW X6 models hitting showrooms in 2008, BMW is forecasting yet another year of increased sales.

[Source: Detroit News]

We're so used to hearing that either GM, Ford or Chrysler will be laying off a chunk of its workforce that it demands a double-take when another automaker announces cuts. Today BMW has announced that it will cut thousands of jobs in 2008, with some outlets reporting up to 8,000 workers will get the axe. A spokesman for BMW revealed that most of the jobs lost would be in Germany and those leaving the company would predominantly be temporary workers. If the final number does reach 8,000 employees, that means BMW will shed 8% of its global workforce that currently stands at 108,000 employees. The layoffs are, of course, a cost-cutting measure to improve profits, which will likely be down in 2007 compared to the year before because BMW is spending more money than it expected on new models, new technology research and the raw cost of materials it needs to build its Ultimate Driving Machines. Though the news will be painful to hear for the workers that lose their jobs, it came as sweet music to the ears of investors who are currently pushing up the price of BMW shares.

[Source: The Detroit Free Press]

Just days after the news that the second production shift would be eliminated at the Hamtramck assembly plant, comes word of more cuts. The second shift at the Pontiac MI truck plant will be dropped in May 2008. The plant currently builds 45 Chevy Silverado and GMC Sierra pickups per hour on two shifts. GM has not said what the production rate will be on a single shift or how many people would be laid off. Sales of big pickups have declined as casual customers have shifted to smaller vehicles and crossovers due to high fuel prices. The decline of the housing market has also hit pickup sales as construction starts have fallen.

[Source: Automotive News - Sub. Req.]

The housing crisis is being blamed for decreased truck sales. In light of the credit crunch, fewer loans are being disbursed and fewer construction workerss are actually at work. With GMC Sierra and Chevy Silverado sales taking the hit, GM has decided to cut a shift at its Oshawa, ON plant in Canada. In a factory that employs 3,000 people, that's a direct loss of 1,000. The indirect job losses won't be known for a while, as GM's suppliers and the businesses around the plant make cuts of their own. It represents the first time the plant has run just two shifts since the early nineties.

The move is more regrettable news for the CAW following Ford's closing its Windsor plant and Chrysler's plan to shed 2,000 union jobs in Ontario. With 85% of the Oshawa plant's output coming south of the border, the 7% drop in sales for the two trucks has made them especially susceptible. The potential light on the horizon is that GM plans to build a state-of-the-art factory next to the Oshawa truck plant to build 500,000 cars per year -- but only after closing one of the two car plants that are currently there. It's quite a fall for the region; GM's Oshawa Plant No. 1 was the most efficient plant in North America in 2004.

Thanks for the tip, Peter!

[Source: Report on Business via Auto North]

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]

Toyota Motor Manufacturing Indiana (TMMI) has just announced that it will eliminate a portion of its temporary work force by the end of the year. Not a huge number of employees are effected, but it's definitely important news for the 370 workers who will no longer be needed, some of which we're told had been working for Toyota in Indiana for years.

TMMI says the workers had been used to help start up the San Antonio plant, and were also used for pilot production programs on the Sequoia SUV and Tundra pickup. Once full-scale production starts up, the pilot workers are no longer needed. Declining demand for the Sequoia also contributed to the decision, according to Kelly Dillon, a TMMI spokesperson. TMMI has used a company called Personnel Management to acquire these temporary workers, and is working with the agency to help find other jobs for them. The employees got their pink slips this week. None of TMMI's regular work force of 4,700 is effected by the layoffs. Personnel Management will still have a contract with TMMI to supply 1,000 to 1,200 workers at the facility.

Thanks for the tip, Will!

[Source: Evansville Courier & Press]

If you are still here after seeing your friends and colleagues pink-slipped (or encouraged to take buyouts or early retirement), then we want to know how you're feeling. That was the basic message sent to Ford's white-collar workers today by Ford's President of the Americas Mark Fields. Top Ford managers received an email from Fields along with Ford's quarterly Employee Engagement Surveys. According to The Detroit Free Press (Freep), the e-mail also discussed Ford's new Way Forward portal online and changes to employee benefits, but it mainly dealt with the anonymous surveys. Fields apparently "strongly encouraged" managers to get workers to fill out the surveys by March 28.

Fields pointed out that the results will help Ford understand the views of employees on the issues covered, so management can better shape future plans and the company can "move forward as a team." Although 6,000 of its 48,000 salaried workers have left Ford since February, those who are still on the job might show a different attitude towards Ford's future.

[Source: Freep]

Looks like the sometimes-suicidally-prone manufacturing robots at General Motors are taking jobs away from some real people. The Australian is reporting that up to 600 Holden employees will be getting their pink slips in the company's Elizabeth plant in South Australia. The Elizabeth plant is where the Holden Commodore, among other vehicles, is manufactured. The explanation is that the company is "adjusting to improved high technology automated operations." Sounds like language employed to gain favor with future robot overlords.

Seriously, though, the downsizing will begin with voluntary buyouts and workers will be given government retraining and other assistance. The Elizabeth plant currently employs 4,500 workers and has been touted as being one of the "most flexible and efficient operations in the world."

The cutbacks come just as the company gears up for production of the ute and wagon versions of the new-for-2006 Commodore range. That vehicle will be the basis of the new Pontiac G8, which will either be built in the States eventually or immediately to save costs. So we have workers doing too good of a job building a car that might be a bit big for current tastes.

Thanks for the tip, Daniel!

[Source: The Australian]