Not true at all - as usual. My family has always had GM cars - I am on my second Equinox and love it.....
My wife has a Trax, my boys have Impalas, and my daughter has a Sonic. All have been good solid cars.
If their cars are so good why are their sales so bad?
What excuse are you using for GMs layoffs and plant closings?
Trump tariffs is part of it ...... has nothing to do with the quality of the cars - I think all car dealers are having issues.....
Ford also dropped sedans at the end of the second quarter - it's not just GM
The Chrysler dealer here told me a few years ago that the cars on his lot were just about wasted space as his business was the truck/SUV sales.
How much of the average Joe's Tax dollar goes toward subsidizing this floundering whale?
How much of the average Joe's tax dollar should go toward paying for Trump's beautiful wall - you know - the same one he campaigned on ad nauseum insisting that Mexico would pay for the wall. You know - the same wall that "President Donald Trump would "totally be willing" to shut down the federal government if Congress does not approve $5 billion for construction of a wall along the U.S.-Mexican border, he said during an Oval Office interview with Politico."
Ford also dropped sedans at the end of the second quarter - it's not just GM
Ford adapted to a changing market, closed no plants and hired more workers.
Trump tariffs is part of it ...... has nothing to do with the quality of the cars - I think all car dealers are having issues.....
Ford also dropped sedans at the end of the second quarter - it's not just GM
The Chrysler dealer here told me a few years ago that the cars on his lot were just about wasted space as his business was the truck/SUV sales.
The tariffs are really not part of this decision. A $33,000-$35,000 car would see cost increases of $144-175 due to increased steel price. Just because imported steel has a 10% tariff increasing the cost, or manufacturers are forced to source higher priced US steel, as the raw material moves through the production process that cost gets spread out quite a bit. Those figures are from Commerce Secretary Wilbur Ross (we'll call him biased), but also echoed by an anti-tariff and anti-protectionist market analyst firm (IHS Markit's John Mothersole).
I'm not saying that higher input costs may not have negative consequences for some companies. What we are dealing with here is declining sales on autos that the consumer is losing interest in. The decision to discontinue these slumping models has little to do with a minimal % increase of cost per auto.
Happy you buy GM products and glad you are satisfied with them. How ironic though that each model you listed is made outside the US.
People aren't buying cars right now. The auto companies are all adapting. GM probably has more excess US capacity than the other companies. If they want to cease production on these cars, fine. Just build the other ones that people do want and are buying here.
These kinds of decisions happen way in advance. GM didn't just decide this at their 2018 Q3 meeting. That is why many people are so upset that the announced the production of a new model in Mexico, when now we know, they likely already had plans to idle these plants. What should've happened is one of these now idled plants should be retooled to build that new model.
All quotes below from earlier this year when GM announced the reintroduction of the Chevy Blazer would be built in Mexico:
"On the same day GM is laying off workers in Youngstown (then Lordstown's second shift), the company is bypassing American workers and sending more jobs to Mexico. GM should reverse this irresponsible decision, and use its tax windfall to invest in American workers," said Senator Sherrod Brown
"This news that the iconic Blazer nameplate will be built in Mexico is disappointing to UAW families and communities across this country. GM employs over 15,000 production workers in Mexico, pays the workers less than $3 per hour and exports over 80% of the vehicles to the U.S. to sell here. This is all happening while UAW-GM workers here in the U.S are laid off and unemployed. We in the UAW have always supported products manufactured and produced in the U.S. and will continue to do so as a part of the fabric of our union," said UAW President Terry Dittes.
Dear Ms. Barra,
As a Member of Congress who voted during the Great Recession to provide economic aid to embattled domestic automakers, I am very disappointed at the recent announcement by General Motors (GM) to manufacture the Chevy Blazer at the Ramos Arizpe, Mexico plant. This decision is an insult to hard-working families all across the country. Thousands of GM workers in America-including the second and third shifts at Lordstown-who have been permanently laid off are hearing the news that GM is sending jobs to Mexico instead of putting people back to work here.
General Motors had pledged to invest more than $1 billion in domestic factories and create 7,000 new jobs, which makes today's announcement more troubling, especially in conjunction with the second shift at Lordstown plant officially ending this past weekend. The men and women of our community walked out of the plant for the last time with anxiety and concern for the future, and woke up recently to learn that GM is creating jobs in Mexico.
In response to the elimination of the second shift, your statement said that "we're working hard to get additional business for the complex." This morning's announcement proves that while there is plenty of investment in the 15,000 production workers in Mexico - and their sub-par wages of less than $3 per hour-more can and should be done by GM to position the Lordstown plant for next 20 years. As GM employees around the country are being laid off, I am requesting an explanation for this decision and urging GM to reconsider and bring the jobs back to the United States.
The men and women of my district are ready to go back to work, and I stand ready to support GM in promoting domestic job creation. I appreciate your attention to this matter, and I look forward to your response outlining the reasons behind this decision. Should you have any questions or concerns, please don't hesitate to contact me or my staff anytime.
Sincerely,
Tim Ryan
Member of Congress
It would be nice if GM used their tax windfall to keep those jobs in the US, but unfortunately the new tax law wasn't set up in a way to encourage that. That said, it is seems rediculous that Trump is throwing a fit about this when he and his family continue to manufacture their products in China (and set everything up so that their families products do not face tariffs).
It would be nice if GM used their tax windfall to keep those jobs in the US, but unfortunately the new tax law wasn't set up in a way to encourage that. That said, it is seems rediculous that Trump is throwing a fit about this when he and his family continue to manufacture their products in China (and set everything up so that their families products do not face tariffs).
Obama's tax money bailout for GM lacked any stipulations that GM build and hire American. Obama's wanted what turned out to be the Volt which Gm is now discontinuing due to lack of sales.
"The new tax law" had nothing to do with bailing out GM's incompetent management.
The rest of your post is your typical ignorant rant about something that has nothing to do with the GMs failures.
It would be nice if GM used their tax windfall to keep those jobs in the US, but unfortunately the new tax law wasn't set up in a way to encourage that. That said, it is seems rediculous that Trump is throwing a fit about this when he and his family continue to manufacture their products in China (and set everything up so that their families products do not face tariffs).
I 100% agree with your feelings about the Trump family products and have always and will always say that.
And I also agree, corporations have armies of lawyers and tax analysts so they can fully maximize their returns and minimize their expenses, which taxes are one. The old system, foreign profits earned and held overseas were not taxed at all. So while the tax on foreign earnings is less than that on domestic earnings, it is an improvement still and overall the corporate tax reform bill made operating and earning profit inside the US more attractive than it had been - so that is an incentive. I think corporations will be capitalizing on any and every advantage they see, some of that will be here and some of that will be there. I would certainly personally prefer more of it to be here and would not give any preferential treatment to foreign earnings vs domestic earnings, but I must acknowledge that there may have been good reason to help US businesses compete abroad with the lower rate.
The US has sweetened the incentive to be here. For those that don't want to come (or stay) and sell their goods here, there are different ways to also incentivize that (or penalize them not doing so).
Here are some figures for thought.
This was on a CNBC graphic - 2017 US auto sales = 17.23 million
Sales by where built:
US 56%
Mexico 12.5%
Canada 11.6%
Japan 9.3%
Europe 6.7%
Korea 4.9%
56% of 17.23 million is 9,648,800
44% is 7,581,200
The trade.gov link at the bottom of this post says 2017 saw 8,271,840 units imported (passenger and light truck)(231,901 medium and heavy trucks imported).
US Exports of passenger vehicle and light trucks for 2017 was 1,983,979 and I'm not sure how medium and heavy trucks get factored in (commercial vehicles), but we can state those here as 129,575. A January 2018 Automotive News article stated exports to be 1.4 million.
Whichever source is used, be it 7.5mill or 8.2mill, there is quite a disparity on the number of autos imported into the US and the number exported, 1.9mill or 1.4mill.
Foreign producers are more dependent on sales here than US producers are dependent on foreign sales.
https://www.trade.gov/td/otm/autostats.asp
An interesting informed opinion:
Don't blame Donald Trump's tariffs for GM layoffs
https://www.freep.com/story/opinion/editorials/2018/11/28/president-donald-trump-gm-tariffs/2128278002/
An interesting informed opinion:
Don't blame Donald Trump's tariffs for GM layoffs
https://www.freep.com/story/opinion/editorials/2018/11/28/president-donald-trump-gm-tariffs/2128278002/
That is a good contribution to the thread.
A couple things that popped in my mind reading it. With Chrysler, Ford and now GM reducing or abandoning car production, that is definitely going to hand more sales in that segment to the foreign brands.
We and they say things like "nobody is buying cars". That isn't exactly factual. There are still alot of people buying cars, just not enough to justify their production based on volume and margins.
The Impala for instance, US sales were 44,000 in the first 3 quarters this year. The Cruze they sold 110,000 US. Now for perspective the high water mark for the Cruze was 2014 when they sold over 273k. And the Impala has declined every year since 2010's 172k.
Chevy still has some cars in their portfolio, but the people who are still interested in buying cars are going to buy cars, they just aren't going to be buying the discontinued nameplates. Those sales are going to go do somebody.
I also think that with all the assembly and production plant talk, I have overlooked the 8,000 while collar jobs. Some of those definitely could be management at the plants, but some must be in engineering and other office type jobs. That is concerning because GM can do R&D or accounting anywhere, so they could be getting rid of some of that work to offshore. Another big concern that isn't getting as much attention.
A final thing I thought about when they were talking about what could, if anything swing people back to cars and they mention an oil embargo or a large gas tax. While large trucks and SUVs are very popular, take a closer look at alot of the SUVs you see on the road. And if you want to go one step further, take a look at some of the engines they are offering. Very small displacement 4 and 6 cylinders with active fuel management on V8s to make those engines run with less fuel when they can. Heck, what Ford has been doing with their small engines, fuel economy and still producing power is pretty amazing.
So the movement is towards trucks and SUVs, many of the ones on the road now are different than they were 10 years ago and alot different than what we had out there 20+ years ago.
Another thing before I run off here, a lighter note, I can probably understand why GM has to save some money because they apparently have plowed it all into their holiday advertising budget! Are you all seeing that same annoying commercial over and over where the couple goes outside and the guy gets a his and hers truck and SUV, the truck was supposed to be for him but the girl loves it. The last 2 weeks I must've seen that commercial well over 100 times. Now I watch alot of TV right now with football season, still I think anyone even just watching TV occasionally would be getting blasted with that commercial. You all seeing it?
Yes - I hate that commercial - it is on all the time......
Saw an article today that blamed a lot on the republican tax plan - makes it beneficial for companies to have assets in other countries.....
I have no problem with anyone criticizing the President for his statements or lack of effective leadership.
Two things related to the steel/aluminum tariffs and the tax plan regarding this GM news. I know opponents of the President and his policies will make any and every attempt to link economic problems to this administrations actions, but I think it is important to remember that this was a global restructuring plan announced by GM. They are deallocating a plant in Canada and their official press release states they will cease operations at two additional plants outside of North America by the end of 2019. Actions taken at facilities in Canada and around the globe have nothing to do with US imposed steel and aluminum tariffs and contradict the foreign asset holding for tax purposes argument since apparently they stand to have fewer foreign assets as a result of this announcement.
Here is the full GM official release:
https://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2018/nov/1126-gm.html
Are you all seeing that same annoying commercial over and over where the couple goes outside and the guy gets a his and hers truck and SUV, the truck was supposed to be for him but the girl loves it.
I don't watch television and will never purchase a new American Car.
GM, Ford & Chrysler are all out of step. Who under the age of 80 buys a Lincoln or a Cadillac these days?
How much of the average Joe's Tax dollar goes toward subsidizing this floundering whale?
How much of the average Joe's tax dollar should go toward paying for Trump's beautiful wall - you know - the same one he campaigned on ad nauseum insisting that Mexico would pay for the wall. You know - the same wall that "President Donald Trump would "totally be willing" to shut down the federal government if Congress does not approve $5 billion for construction of a wall along the U.S.-Mexican border, he said during an Oval Office interview with Politico."
I suggest a tax deduction for rich people to make a contribution towards building the wall, and a check off box for the rest of us on our tax returns you know where they have those "do you want to contribute $1 towards the presidential re-election campaign boxes. Let people contribute $1 or $5 or $10. They have all those boxes for people to contribute towards different charities, but the wall is vital to the security interests of this country. So let people contribute $1 or more towards building the wall. Let volunteers from former military and retired construction etc. workers be able to work on the wall, rather than just having some companies bid on building it. Let the bidding companies have oversight and exclusivity in the essential parts of the structure, but there is no reason you cannot have other volunteers who will help transport materials, remove debris etc. Make it a nationwide effort and the wall will be built.
Are you all seeing that same annoying commercial over and over where the couple goes outside and the guy gets a his and hers truck and SUV, the truck was supposed to be for him but the girl loves it.
I don't watch television and will never purchase a new American Car.
GM, Ford & Chrysler are all out of step. Who under the age of 80 buys a Lincoln or a Cadillac these days?
"Who under the age of 80 buys a Lincoln or a Cadillac these days?"
People whose parents thought those cars were status symbols, but since their parents couldn't afford them, they now buy them to show how successful they are. Sad to say it impacted a whole generation.
Used to own two Saturns. LOVED those cars and that company. If they were still around, I'd still be driving one.
Then I owned a Pontiac. LOVED it. If they were still around, I'd still be driving one.
Then I went and test drove a Toyota and a Chevrolet.
Been driving Toyotas ever since. Stuff happens, I guess.
Are you all seeing that same annoying commercial over and over where the couple goes outside and the guy gets a his and hers truck and SUV, the truck was supposed to be for him but the girl loves it.
I don't watch television and will never purchase a new American Car.
GM, Ford & Chrysler are all out of step. Who under the age of 80 buys a Lincoln or a Cadillac these days?
They're both big hits oversees, BigV....As are, believe it or not, Buick's.....And I see a sh@t ton of Lincoln and Cadillac SUV's all over upstate, NY too...Along with Ford, GMC, and Chrysler SUV's and pickup trucks. Of course owning quality built SUV's and Trucks actually makes sense where I live given we have 6 months of winter and copious amounts of lake effect snow. Also lots of Toyota and Honda SUV's as well...Many of which are built right here in the good old USA....
GM CEO will keep 'open mind' on plant closings, acknowledges anger
David Shepardson
4 Min Read
WASHINGTON (Reuters) - General Motors Co (GM.N) Chief Executive Mary Barra on Wednesday vowed to keep an “open mind” about the future of an Ohio plant that will lose vehicle production, but warned the Detroit automaker has excess capacity and did not suggest the company was reconsidering the plan.
Barra came under pressure from Ohio’s two U.S. senators and other lawmakers who want GM to shift production of a vehicle from Mexico or build electric vehicles at the Lordstown Assembly plant in their state that the automaker has said it intends to close.
“I want to make sure that the workforce knows that there are limitations and we do have an overcapacity across the country,” Barra said, urging workers at plants set to close to take seriously offers of GM jobs in other parts of the countries.
In a brief Reuters interview after her meetings Wednesday, she said it would be “very costly” to shift production from Mexico of the Chevrolet Blazer due to be launched in the next few days.
U.S. President Donald Trump told GM last week that the company had “better” find a new vehicle to build at the plant in Ohio, which could be crucial to his re-election chances in 2020.
Asked about Trump’s comments, Barra did not directly answer but said she understood the strong reaction in Washington.
“I understand this is something that impacts the country and I understand that there is a lot of emotion and concern about it,” Barra said.
GM said last week it would close five North American assembly plants next year and cut up to 15,000 jobs as it blames slow selling car sales for the need to restructure.
The CEO said GM planned to add other products at U.S. plants next year and that the automaker would have some jobs to fill at other Ohio facilities in 2019.
She cast the decision as critical to keep GM competitive. In the interview, she said GM wanted to “do the right thing for our employees but also make sure General Motors is strong and lean in the future.”
Slideshow (6 Images)Senator Rob Portman said Barra made no promises about the future of the Lordstown plant in Ohio, where the soon-to-be-discontinued Chevrolet Cruze sedans are manufactured.
Barra said the plant’s ultimate status will be determined during contract talks next year with the United Auto Workers (UAW) union.
“We’re not asking for charity.” Portman said, adding the members are asking for a new product for the plant to build.
GM has come under harsh criticism from lawmakers and from President Donald Trump since Nov. 26, when the No. 1 U.S. automaker announced the biggest restructuring since its bankruptcy a decade ago.
Portman said he spoke to fellow Republican Trump on Wednesday about GM.
Barra is in Washington for meetings with lawmakers, including Senate Democratic Leader Chuck Schumer as well as lawmakers from Ohio and Maryland. She was also expected to meet with lawmakers from Michigan on Thursday, among other meetings. After GM announced its plans, Trump threatened to eliminate subsidies for GM in retaliation.
Administration officials later said they wanted to end subsidies for electric cars in 2020 or 2021, affecting GM and other automakers.
Trump also said new auto tariffs were being studied, asserting, without evidence, that they could prevent job cuts such as those planned by GM.
The UAW has objected to GM’s plan to end production in 2019 at four U.S. plants, saying it violates commitments made during contract talks in 2015. The union has asked GM to rescind the decision and resolve the fate of the plants in talks for a new labor contract next year.
December 14, 2018 10:23 AM UPDATED 19 hours ago
GM to begin U.S. layoff notices as it offers job transfers
UAW launches campaign to convince automaker to spare 4 U.S. plants
DAVID SHEPARDSON
Reuters
WASHINGTON -- General Motors on Friday said it is beginning to send formal notices to U.S. government agencies of its plan to close auto plants and cut thousands of jobs as it shrinks passenger car production in North America.
The largest U.S. automaker said 2,800 hourly active U.S. workers at four U.S. plants that will end production next year are eligible for new jobs at other plants.
GM said it currently has 2,700 current open positions at seven plants in Indiana, Ohio, Kentucky, Michigan, Tennessee and Texas.
GM said more than 1,100 U.S. employees at plants losing production have already volunteered to transfer to other GM U.S. plants, while 1,200 are eligible to retire.
The UAW also launched a campaign Friday to convince GM to spare the four U.S. plants from closing.
General Motors has a plan for the majority of employees currently working at Maryland, Michigan, Ohio and Oshawa, Canada facilities that will be without product allocation beyond 2019.
For U.S. hourly impacted employees, this includes approximately 2,700 available jobs at other GM U.S. plants, GM training opportunities and access to tuition assistance. More than 1,100 U.S. employees have already volunteered to transfer to other GM U.S. plants. This update coincides with GM’s filing of U.S. government-required layoff notifications.
“Strong U.S. and Canadian economies enable us to provide these opportunities now as we position General Motors for long-term success,” said GM Chairman and CEO Mary Barra. “Our focus remains on providing interested employees options to transition including job opportunities at other GM plants. We remain committed to working with local government officials, our unions and each individual to find appropriate opportunities for them.”
GM U.S. HOURLY EMPLOYEES AT IMPACTED PLANTS
TOTAL U.S. HOURLY ACTIVE EMPLOYEES IMPACTED 2,800
EMPLOYEES ELIGIBLE TO RETIRE 1,200
TOTAL U.S. GM JOB OPPORTUNITIES AVAILABLE 2,700
EMPLOYEES ALREADY VOLUNTEERED TO TRANSFER 1,100GM U.S. PLANTS IN NEED OF ADDITIONAL EMPLOYEES
The additional 2,700 jobs at GM’s U.S. manufacturing plants will support new vehicle launches beginning in 2019. The facilities needing additional employees:
• Bedford Casting Operations in Bedford, Indiana
• Bowling Green Assembly in Bowling Green, Kentucky
• Flint Assembly in Flint, Michigan
• Lansing Grand River Assembly in Lansing, Michigan
• Toledo Transmission Operations in Toledo, Ohio
• Spring Hill Manufacturing in Spring Hill, Tennessee
• Arlington Assembly in Arlington, Texas
• Skilled trades jobs available across multiple locationsGM is building on its more than $22 billion in investments in U.S. operations since 2009 and reaffirming its commitment to maintaining a strong manufacturing presence in the U.S.
GM CANADA EMPLOYEES - GM Canada has initiated efforts along with its dealers, local colleges and other employers to train and help secure jobs for impacted workers from the Oshawa Assembly Plant who are interested. For additional information go to media.gm.ca.
GM SALARIED EMPLOYEES - Salaried employees impacted by the voluntary and involuntary severance programs will be provided outplacement services including job search assistance, career counseling, resume writing and interview skills. Many salaried employees at unallocated plants will have opportunities at other GM locations.
Eligible for other jobsGM hasn't assigned new vehicles to the plants and hourly union workers aren’t scheduled to begin being laid off until March 1, months after the “holiday season.”
The letter writing campaign comes nearly three weeks after GM announced the moves, which could impact roughly 6,700 U.S. plant workers, including 800 salaried, 3,300 UAW hourly workers at assembly plants in Detroit-Hamtramck, Mich., and Lordstown, Ohio and powertrain factories in Warren, Mich. and White Marsh, Md.
“Right now, workers and their families need us to stand in solidarity with them against this callous decision,” the UAW said Friday. “Without job security or stability, many of our UAW brothers and sisters are headed into the new year unsure of how they’ll provide for their families or earn a living.”
With normal attrition rates, a GM spokesman said the company is confident that all affected hourly workers will be eligible for another job if willing to move to another plant.
GM said many salaried employees at plants losing production "will have opportunities at other GM locations."
The formal layoff notices will begin going to government agencies on Friday and will continue into 2019, GM said.
GM CEO Mary Barra, who came under fire from lawmakers for how the automaker disclosed the job cuts last month, said in a statement Friday that GM's "focus remains on providing interested employees options to transition including job opportunities at other GM plants."
GM said in November it will cease production at five North American plants -- including three assembly plants in Ohio, Michigan and Ontario -- next year and cut up to 15,000 jobs. GM is ending production of a half dozen cars, citing slow-selling sedans as one reason for the need to restructure.
A big chunk of the job cuts include plans to trim 15 percent of GM's North American salaried workforce by early next year.
GM said salaried workers who are losing their jobs are receiving "out-placement services including job search assistance, career counseling, resume writing and interview skills."
GM, which announced in November it is ending production at its Oshawa assembly plant in Canada, also said it is working with "dealers, local colleges and other employers to train and help secure jobs for impacted workers from the Oshawa Assembly Plant who are interested." Canadian union Unifor has vowed to fight the plant closure.
Two U.S. senators earlier asked GM other questions on the layoff impacts, including how many jobs will be cut at suppliers as a result.
It is great that GM has openings for people to transfer. There would be alot more jobs available if they quit making autos in Mexico and Korea for sale here.
