General Motors changing its focus

NewCreation435

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"General Motors on Monday announced a major restructuring of its global business, saying it will shut production at five facilities in North America and slash its staff. GM will reduce its salaried workforce by 15%, including a quarter of the company's executives.
The moves are the first big steps in the century-old GM's transformation. The company is reinvesting money away from cars that once dominated America's roadways and putting it into technology it believes will power its future."

rest of the article here
https://www.cnn.com/2018/11/26/business/gm-oshawa-plant/index.html

GM is cutting its productive of sedans

What do you think of this move?
 

Josiah

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Ford announced much the same thing several months ago.... if I recall correctly, it announced it will stop making cars ENTIRELY starting soon (I guess that means no more Mustangs, ouch) - and will focus only on SUV's and trucks, at least for the US market.
And will invest into self-driving vehicles and non-gas vehicles (gambling that's the future).

Without a doubt, that's where the money is. For decades, the best selling car in the USA has been the Toyota Camry (my parents have helped that, lol) but it was passed up last year by the Toyota RAV4, a small SUV. I'm in that company now, driving a Honda Pilot and Subaru Forester (a company car), although I still own by Mazda Miata.


Here's the simple truth:
The US auto industry once entirely dominated the world. At one time, HALF of all the cars in the world were Fords. In the USA, foreign cars were almost non-existent before WW 2, and still only about 5% until 1960. But here's the thing: Those foreign cars - first from Germany and Sweden, later from Japan, were simply FAR better built and better designed, FAR more reliable and durable, FAR more efficient. And meanwhile, US cars got more and more unreliable, troublsome, inefficient. gas hogs. Their venture with the Pinto and Vega were terrible. Detroit had DECADES to get it right - and easily, quickly could have if it gave a rip. But it didn't. Even at that, it's had DECADES to put out good, well-designed cars but....

We taxpayers bailed out Chysler - only to have it get bought by Mercedes (which could not improve it) and now by Fiat (who also can't seem to improve the brand). We taxpayers bailed out GM big time, but it still struggles and while SOME models prove GM is able, most models prove it doesn't want to. Ford is the only brand we taxpayers haven't had to prop up - over and over - and it has been consistently profitable (mostly because of small trucks) but it's leaving the sedan market, too. Meanwhile, the Asians have taken what Detroit has failed to produce. Now the #1 most American made car is the Toyota Camry (go figure) - more American made than any "American" car. My Honda and my Subaru were both assembled here (unlike many GM and
Ford cars) and many of the parts made here. Along with the Korean cars, they have come to dominate the US market. Why? Because these countries have better engineers? NO WAY! Because they have companies that choose to build good quality and efficient cars that people will buy. Detroit just thinks the government would bail them out .... and blame everything on the unions.




.
 

Ruth

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Yes, and they are closing their plant in Lordstown, Ohio.
 

Albion

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So Osama bin Laden is dead, and General Motors is NOT exactly alive, after all.
 

NewCreation435

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So Osama bin Laden is dead, and General Motors is NOT exactly alive, after all.

The article stated this about its current position
"Today it is performing reasonably well — earnings are up and the balance sheet is healthy. But sales are starting to slip in China and North America, two of GM's biggest and most important markets.
Barra said in a conference call with reporters that she wanted to transition the company when times were good. That brought praise from Wall Street: GM's stock rose more than 5% Monday. "In contrast to times past, General Motors, under CEO Mary Barra, is trying to get ahead of a potential crisis by making cuts now," said Michelle Krebs, executive analyst at Autotrader."
 

Albion

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The article stated this about its current position
"Today it is performing reasonably well — earnings are up and the balance sheet is healthy. But sales are starting to slip in China and North America, two of GM's biggest and most important markets.
Barra said in a conference call with reporters that she wanted to transition the company when times were good. That brought praise from Wall Street: GM's stock rose more than 5% Monday. "In contrast to times past, General Motors, under CEO Mary Barra, is trying to get ahead of a potential crisis by making cuts now," said Michelle Krebs, executive analyst at Autotrader."

I guess I missed whatever the point was that you were making with this post. Sorry.
 

psalms 91

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It doesnt make sense to close plants rather than use them in the way she is saying unless of course it is about union busting and getting cheaper labor
 

Albion

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It doesnt make sense to close plants rather than use them in the way she is saying unless of course it is about union busting and getting cheaper labor

Maybe, but the effect of the Obama takeover of GM a few years back was to take the ownership from the stockholders and give effective control to the unions. The details involved I am not sure of, but it doesnt look like a union-busting move.
 

NewCreation435

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I guess I missed whatever the point was that you were making with this post. Sorry.

Your comment was that GM was "not exactly alive" and my point is that according to reports that these changes were being made when times were good
 

tango

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I wonder how well the auto industry will survive, especially if it's anything like the UK industry.

Prior to 1993 the Honda Accord, sold in the UK, was made in Japan. In 1993 they started construction of the all-new, British built, Honda Accord. I attended a launch event at a Honda dealer to see it. Even with my untrained eye I could see that the panels weren't aligned properly. The Accord I drove at the time, which was made in the 80s in Japan, had well-aligned panels but the brand new one that had literally zero miles on the clock had some panels misaligned by nearly half an inch.

As far as unions go, they are good when they are busy protecting workers from abusive bosses. When the unions themselves become abusive and start to expect pay rates far above what the market can bear all they do is hasten the demise of their industry. Sadly market forces seem to depress pay rates for the people who do much of the real work and seem to do very little to rein in excesses in the boardroom. It's a shame that cost-savings always result in pressure brought to bear on the rank-and-file workers and never on CEO rewards.
 

Albion

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Your comment was that GM was "not exactly alive" and my point is that according to reports that these changes were being made when times were good

You think that times are good for GM at this the present?
 
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