DARK DAYS FOR GM
Thread Starter
Closet American
Joined: July 17, 2005
Posts: 5,851
Likes: 1
From: Vancouver, BC (Hollywood North)
:bang:
Hey GM, here's a hot tip for you: Do you REALLY need a Chevy Cobalt AND a Pontiac Pursuit? When you eliminate your obvious redundancies, then I'll know you're SERIOUS about a turnaround.
GM North America to Undergo Major Capacity Reduction
Source: GM
•Next Significant Step in GM's North American Turnaround Plan
•9 Assembly, Stamping & Powertrain Facilities, 3 SPO Facilities to Cease Operations
•Total Reduction of 30,000 Positions
•Total Cost Reduction Running Rate of $7 Billion by End of 2006
DETROIT - General Motors will undergo a wide-ranging restructuring of its manufacturing operations in the United States and Canada as part of its comprehensive four-point plan to return the company to profitability and long-term growth, GM Chairman and CEO Rick Wagoner announced today.
GM's next step in its North American turnaround plan addresses its ongoing capacity utilization, a major component of reducing structural cost. A total of nine assembly, stamping and powertrain facilities and three Service and Parts Operations facilities will cease operations.
The additional actions will reduce GMNA assembly capacity by about 1 million units by the end of 2008, in addition to the previously implemented reduction of 1 million units between 2002 and 2005. Factoring in the additional capacity from GM's new Delta Township facility in Lansing, Mich., slated to begin production next year, the overall net result will be a GMNA assembly capacity of 4.2 million units. While down 30 percent since 2002, this capacity level will still provide GM plenty of flexibility to anticipate and meet market demand, but in a much more cost-effective manner. A total of 30,000 manufacturing positions will be eliminated from 2005 through 2008.
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," Wagoner added. "But these actions are necessary for GM to get its costs in line with our major global competitors. In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible.
"We continue to be equally committed to revenue drivers - introducing compelling new cars and trucks, and executing our revitalized sales and marketing strategy - and we have received ratification of the agreement with the UAW, which will help significantly to address our health-care cost challenges," Wagoner said. "We are making steady and significant progress in implementing the plan to turn around our U.S. business."
The following six assembly plant sites will be affected in the years indicated:
•Oklahoma City, Okla., will cease production in early 2006.
•Lansing, Mich., Craft Centre will cease production in mid-2006.
•Spring Hill, Tenn., Plant/Line No. 1, will cease production at the end of 2006.
•Doraville, Ga., will cease production at the end of its current products' lifecycle in 2008.
•The third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Subsequently, Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.
•The third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand.
Capacity-related actions affecting stamping, Service & Parts Operations and powertrain facilities include:
•The Lansing, Mich., Metal Center will cease production in 2006.
•The Pittsburgh, Pa., Metal Center will cease production in 2007.
•The Parts Distribution Center in Portland, Ore., will cease operations in 2006; the Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006; the Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007. One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007.
•The competitiveness of all unitizing (packaging) operations at the Pontiac, Drayton Plains, and Ypsilanti Processing Centers in Michigan, as well as portions of the unitizing operations at the Flint, Mich., Processing Center will be evaluated in accordance with the provisions of the GM-UAW national agreement.
•St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008.
•The Flint, Mich., North 3800 engine facility ("Factory 36") will cease production in 2008.
Given the demographics of GM's workforce, the company plans to achieve much of the job reduction via attrition and early retirement programs. GM will work with the leadership of its unions, as any early retirement program would need to be mutually agreed upon. GM hopes to reach an agreement on such a plan as soon as possible.
"These are difficult moves that will affect thousands of dedicated GM employees and families, as well as state and local governments," Wagoner said. "We will work our hardest to mitigate that impact."
There will be a significant restructuring charge in conjunction with this capacity announcement, and also with any related early retirement program. The details of these charges will be provided when available.
Wagoner also said the company has further accelerated its efforts in structural cost reduction, raising the previously indicated $5 billion running rate cost reduction plan in North America to $6 billion by the end of 2006. In addition, GM continues to pursue its plans to target $1 billion in net material cost savings. In total, the plan is to achieve $7 billion of cost reductions on a running rate basis by the end of 2006 - $1 billion above the previously indicated target.
"Our collective goal remains the same: to return our North American operations to sustained profitability as soon as possible, thereby helping to ensure a strong General Motors for the future," Wagoner concluded.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company's history. GM's global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com.
Source: GM
•Next Significant Step in GM's North American Turnaround Plan
•9 Assembly, Stamping & Powertrain Facilities, 3 SPO Facilities to Cease Operations
•Total Reduction of 30,000 Positions
•Total Cost Reduction Running Rate of $7 Billion by End of 2006
DETROIT - General Motors will undergo a wide-ranging restructuring of its manufacturing operations in the United States and Canada as part of its comprehensive four-point plan to return the company to profitability and long-term growth, GM Chairman and CEO Rick Wagoner announced today.
GM's next step in its North American turnaround plan addresses its ongoing capacity utilization, a major component of reducing structural cost. A total of nine assembly, stamping and powertrain facilities and three Service and Parts Operations facilities will cease operations.
The additional actions will reduce GMNA assembly capacity by about 1 million units by the end of 2008, in addition to the previously implemented reduction of 1 million units between 2002 and 2005. Factoring in the additional capacity from GM's new Delta Township facility in Lansing, Mich., slated to begin production next year, the overall net result will be a GMNA assembly capacity of 4.2 million units. While down 30 percent since 2002, this capacity level will still provide GM plenty of flexibility to anticipate and meet market demand, but in a much more cost-effective manner. A total of 30,000 manufacturing positions will be eliminated from 2005 through 2008.
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," Wagoner added. "But these actions are necessary for GM to get its costs in line with our major global competitors. In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible.
"We continue to be equally committed to revenue drivers - introducing compelling new cars and trucks, and executing our revitalized sales and marketing strategy - and we have received ratification of the agreement with the UAW, which will help significantly to address our health-care cost challenges," Wagoner said. "We are making steady and significant progress in implementing the plan to turn around our U.S. business."
The following six assembly plant sites will be affected in the years indicated:
•Oklahoma City, Okla., will cease production in early 2006.
•Lansing, Mich., Craft Centre will cease production in mid-2006.
•Spring Hill, Tenn., Plant/Line No. 1, will cease production at the end of 2006.
•Doraville, Ga., will cease production at the end of its current products' lifecycle in 2008.
•The third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Subsequently, Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.
•The third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand.
Capacity-related actions affecting stamping, Service & Parts Operations and powertrain facilities include:
•The Lansing, Mich., Metal Center will cease production in 2006.
•The Pittsburgh, Pa., Metal Center will cease production in 2007.
•The Parts Distribution Center in Portland, Ore., will cease operations in 2006; the Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006; the Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007. One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007.
•The competitiveness of all unitizing (packaging) operations at the Pontiac, Drayton Plains, and Ypsilanti Processing Centers in Michigan, as well as portions of the unitizing operations at the Flint, Mich., Processing Center will be evaluated in accordance with the provisions of the GM-UAW national agreement.
•St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008.
•The Flint, Mich., North 3800 engine facility ("Factory 36") will cease production in 2008.
Given the demographics of GM's workforce, the company plans to achieve much of the job reduction via attrition and early retirement programs. GM will work with the leadership of its unions, as any early retirement program would need to be mutually agreed upon. GM hopes to reach an agreement on such a plan as soon as possible.
"These are difficult moves that will affect thousands of dedicated GM employees and families, as well as state and local governments," Wagoner said. "We will work our hardest to mitigate that impact."
There will be a significant restructuring charge in conjunction with this capacity announcement, and also with any related early retirement program. The details of these charges will be provided when available.
Wagoner also said the company has further accelerated its efforts in structural cost reduction, raising the previously indicated $5 billion running rate cost reduction plan in North America to $6 billion by the end of 2006. In addition, GM continues to pursue its plans to target $1 billion in net material cost savings. In total, the plan is to achieve $7 billion of cost reductions on a running rate basis by the end of 2006 - $1 billion above the previously indicated target.
"Our collective goal remains the same: to return our North American operations to sustained profitability as soon as possible, thereby helping to ensure a strong General Motors for the future," Wagoner concluded.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company's history. GM's global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com.
I Have Admin Envy
Joined: January 30, 2004
Posts: 6,740
Likes: 1
They have to get rid of all the union deadbeats.
I know there are lots of UAW members that do their jobs, but I have seen and heard that there are a lot of bad apples that are helping bring down the ship
I know there are lots of UAW members that do their jobs, but I have seen and heard that there are a lot of bad apples that are helping bring down the ship
I'm people, and I like.
Joined: March 13, 2004
Posts: 9,243
Likes: 0
From: PDX
They gotta cut down on the number of cars and focus on those cars more.... When you have so many cars, you can't focus as much research or money on them. That is why so many Asian companies are kicking ****. Fewer Cars, more moneys for each.
My C/T is cooler than Arin is.
Joined: August 6, 2004
Posts: 4,596
Likes: 4
From: Parkersburg, WV
Originally posted by thezeppelin8@November 22, 2005, 9:03 PM
They gotta cut down on the number of cars and focus on those cars more.... When you have so many cars, you can't focus as much research or money on them. That is why so many Asian companies are kicking ****. Fewer Cars, more moneys for each.
They gotta cut down on the number of cars and focus on those cars more.... When you have so many cars, you can't focus as much research or money on them. That is why so many Asian companies are kicking ****. Fewer Cars, more moneys for each.
Bullitt Member
Joined: November 14, 2005
Posts: 302
Likes: 0
GM's main problem imho is that the killed themselves when they fired the older desginers and hired a bunch of kids. They in turn have been trying to go with a futuristic look that isn't catching on and have been making horrible model cars. IMHO GM could possibly pull their hiney out of the fire if they dump 90% of the cars they have, since 90% of them are the same model with different badges, and bring back the true American spirit in a retro Camaro and Firebird along with others.
Look at the GTO for example. What is it really? A rounder Grand Prix with more horsepower. Why not use an old style GTO? heck just for alittle variety!
Ford and Chrysler are on the ball. Why not GM?
Sorry that is just my 2 cents.
Look at the GTO for example. What is it really? A rounder Grand Prix with more horsepower. Why not use an old style GTO? heck just for alittle variety!
Ford and Chrysler are on the ball. Why not GM?
Sorry that is just my 2 cents.
Cobra R Member
Joined: March 18, 2004
Posts: 1,502
Likes: 0
Originally posted by 05blackV6@November 29, 2005, 3:55 PM
GM's main problem imho is that the killed themselves when they fired the older desginers and hired a bunch of kids. They in turn have been trying to go with a futuristic look that isn't catching on and have been making horrible model cars. IMHO GM could possibly pull their hiney out of the fire if they dump 90% of the cars they have, since 90% of them are the same model with different badges, and bring back the true American spirit in a retro Camaro and Firebird along with others.
Look at the GTO for example. What is it really? A rounder Grand Prix with more horsepower. Why not use an old style GTO? heck just for alittle variety!
Ford and Chrysler are on the ball. Why not GM?
Sorry that is just my 2 cents.
GM's main problem imho is that the killed themselves when they fired the older desginers and hired a bunch of kids. They in turn have been trying to go with a futuristic look that isn't catching on and have been making horrible model cars. IMHO GM could possibly pull their hiney out of the fire if they dump 90% of the cars they have, since 90% of them are the same model with different badges, and bring back the true American spirit in a retro Camaro and Firebird along with others.
Look at the GTO for example. What is it really? A rounder Grand Prix with more horsepower. Why not use an old style GTO? heck just for alittle variety!
Ford and Chrysler are on the ball. Why not GM?
Sorry that is just my 2 cents.
I dunno man, I think too many people on this site think that GM and Ford can be saved by putting out nice performance cars like the mustang but with more power and stuff like that. I guess its natural, cause that's what guys and gals on this site look for in a car. But really, ford does have a runaway hit in its hands with the mustang, but its definitely not being enough to pull its hiney out of the fire. I agree that GM could trim down the number of cars quite a lot, and it needs to make prettier cars, but I don't think what it needs is a new Camaro and Firebird (funny you say that since that was an example of two cars that were pretty much the same with a different name). That'd be fun for enthusiasts looking for some mustang competition and stuff, but its not gonna sell in big enough numbers to save GM.
I think despite the reaction from enthusiast charger fans and stuff, chrysler made a smart move. Take some of that distinctive, muscular, american style from a muscle car, and tack it onto something that could sell in great numbers and make some serious profit, like a large sedan.
I Have Admin Envy
Joined: January 30, 2004
Posts: 6,740
Likes: 1
In terms of design, GM needs a lot of help, their newest products are an improvement, but nothing that will create a media frenzy.
A striking design can get you customers, but a quality and reliable product will keep them. Example... Chrysler has gained market share with their new LX cars, but they won't get a lot of repeat customers if they turn out to be turds.
what GM needs to do is fire most of the design staff and hire someone like Chip Foose (tell him to name his price and not mettle). That will help on the business end.
A striking design can get you customers, but a quality and reliable product will keep them. Example... Chrysler has gained market share with their new LX cars, but they won't get a lot of repeat customers if they turn out to be turds.
what GM needs to do is fire most of the design staff and hire someone like Chip Foose (tell him to name his price and not mettle). That will help on the business end.
Bullitt Member
Joined: November 14, 2005
Posts: 302
Likes: 0
Originally posted by mustang_sallad@November 29, 2005, 7:12 PM
I dunno man, I think too many people on this site think that GM and Ford can be saved by putting out nice performance cars like the mustang but with more power and stuff like that. I guess its natural, cause that's what guys and gals on this site look for in a car. But really, ford does have a runaway hit in its hands with the mustang, but its definitely not being enough to pull its hiney out of the fire. I agree that GM could trim down the number of cars quite a lot, and it needs to make prettier cars, but I don't think what it needs is a new Camaro and Firebird (funny you say that since that was an example of two cars that were pretty much the same with a different name). That'd be fun for enthusiasts looking for some mustang competition and stuff, but its not gonna sell in big enough numbers to save GM.
I think despite the reaction from enthusiast charger fans and stuff, chrysler made a smart move. Take some of that distinctive, muscular, american style from a muscle car, and tack it onto something that could sell in great numbers and make some serious profit, like a large sedan.
I dunno man, I think too many people on this site think that GM and Ford can be saved by putting out nice performance cars like the mustang but with more power and stuff like that. I guess its natural, cause that's what guys and gals on this site look for in a car. But really, ford does have a runaway hit in its hands with the mustang, but its definitely not being enough to pull its hiney out of the fire. I agree that GM could trim down the number of cars quite a lot, and it needs to make prettier cars, but I don't think what it needs is a new Camaro and Firebird (funny you say that since that was an example of two cars that were pretty much the same with a different name). That'd be fun for enthusiasts looking for some mustang competition and stuff, but its not gonna sell in big enough numbers to save GM.
I think despite the reaction from enthusiast charger fans and stuff, chrysler made a smart move. Take some of that distinctive, muscular, american style from a muscle car, and tack it onto something that could sell in great numbers and make some serious profit, like a large sedan.
I'm not saying performance cars will save them necessarly. I think what would save them is to trim the fat. 90 % of their cars are the same body with different badges. Then focus on improving what is left and to reintroduce some of the muscle cars people know and love. But do it right! You are right about the firebird and Camaro. So I say keep the GTO for pontiac and just reintro a 1969 retro Camaro or something. Just don't screw it up!
This is just one mans opinion.
Thread
Thread Starter
Forum
Replies
Last Post
austin101385
'10-14 Shelby Mustangs
3
Oct 2, 2015 01:00 PM