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Author: Subject: General Motors Closing Plants Cutting Jobs

Maximum Peach





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  posted on 11/27/2018 at 09:11 AM
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GM to slash 14,700 jobs in North America


DETROIT (AP) — General Motors will lay off 14,700 factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric vehicles.

The reduction includes 8,100 white-collar workers, some of whom will take buyouts and others who will be laid off. Most of the affected factories build cars that won't be sold in the U.S. after next year. They could close or they could get different vehicles to build. They will be part of contract talks with the United Auto Workers union next year.

Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario. Also affected are transmission factories in Warren, Michigan, as well as Baltimore.

More than 6,000 factory workers could lose jobs in the U.S. and Canada, although some could transfer to truck and SUV plants.

GM, the largest automaker in the U.S. and includes the Chevrolet, Buick, Cadillac and GMC brands, said the moves will save $6 billion in cash by the end of next year, including $4.5 billion in recurring annual cost reductions and a $1.5 billion reduction in capital spending.

Those cuts are in addition to $6.5 billion that the company has announced by the end of this year.

GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong," CEO Mary Barra told reporters.

Barra said GM is still hiring people with expertise in software and electric and autonomous vehicles, and many of those who will lose their jobs are now working on conventional cars with internal combustion engines.

Barra said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust with it.

The factories up for possible closure are part of GM's effort "to right-size our capacity for the realities of the marketplace," as consumers shift away from cars to trucks and SUVs.

The company, she said, has invested in newer architectures for trucks and SUVs so it can cut capital spending while still raising investment in autonomous and electric vehicles.

The salaried reductions amount to 15 percent of GM's North American workforce out of 54,000. At the factories, 3,000 workers could lose jobs in Canada and another 3,600 in the U.S. Some U.S. workers would transfer to truck and SUV plants where GM is increasing output, the company said.

GM has offered buyouts to 18,000 retirement-eligible workers with a dozen or more years of service. It would not say how many have accepted the buyouts, but it was short of the company's target because GM said there will be white-collar layoffs.

The company expects to take a pretax charge of $3 billion to $3.8 billion due to the actions, including up to $1.8 billion of asset write downs and pension charges. The charges will take place in the fourth quarter of 2018 and the first quarter of next year.

https://www.cleveland.com/business/2018/11/gm-to-slash-14700-jobs-in-north- america-lordstown-plant-faces-closure.html




The local GM plant here is among those that will idle on March 1st. The plant currently runs just a single shift employing about 1500 workers. At the end of 2010 this plant was running full steam with three shifts building the smaller Chevy Cruze with approximately 4500 employees.

 
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Maximum Peach



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  posted on 11/27/2018 at 09:12 AM
GM's stock was up 4.79% on the news.
 

Maximum Peach



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  posted on 11/27/2018 at 09:37 AM
They are eliminating the Chevy Cruze (Lordstown), Cadillac CT6 (Detroit/Hamtramck), Cadillac XTS (Oshawa Canada), Chevy Impalla (Oshawa Canada and Detroit/Hamtramck), Chevy Volt (Detroit/Hamtramck) and Buick LaCrosse (Detroit/Hamtramck). The Warren Michigan plant is a transmission plant for now discontinued cars, but also for the current line of Acadias and Malibus. The Baltimore plant builds the Allison transmissions used in 2500 and 3500 series pickup trucks.


This while they newly announced Blazer will be built in Mexico, where the Terrain and Equinox are also built and the Buick Envision is built in China among other vehicles GM brings in from Korea. Can't bring those vehicles here and employ US workers for those. Nope.

I don't fault GM eliminating certain models and plants due to declining sales of some models. What I have a problem with growing foreign production while there are plants here and people here that could build those cars. If they want to discontinue models made here, they should build new or other models in those facilities.



 

Universal Peach



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  posted on 11/27/2018 at 10:53 AM
It's a shame the Volt is being discontinued. It's very popular here in California.

I wasn't aware so many models were built out of the US.

 

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Ultimate Peach



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  posted on 11/27/2018 at 11:34 AM
You are going to see more production moving outside of the US to avoid tariffs. The tariffs on imported steel and aluminum have really hurt the automotive industry, plus retaliatory tariffs on the vehicles if they are exported. Much of this is directly related to unintended consequences from the Trump tariffs. Not to mention higher labor costs in the US, there has never been a worse time to build autos in the USA.
 

Zen Peach



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  posted on 11/27/2018 at 11:37 AM
quote:
You are going to see more production moving outside of the US to avoid tariffs. The tariffs on imported steel and aluminum have really hurt the automotive industry, plus retaliatory tariffs on the vehicles if they are exported. Much of this is directly related to unintended consequences from the Trump tariffs. Not to mention higher labor costs in the US, there has never been a worse time to build autos in the USA.


Perhaps a change in the Paradigm would be beneficial. Perhaps U.S. auto makers could start producing vehicles people are proud to own, good looking cars that speak to youth. Cars that are dependable and not shabbily produced.

How many people here own an American CAR?...Not truck.

 

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Universal Peach



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  posted on 11/27/2018 at 12:30 PM
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Perhaps a change in the Paradigm would be beneficial. Perhaps U.S. auto makers could start producing vehicles people are proud to own, good looking cars that speak to youth. Cars that are dependable and not shabbily produced.

How many people here own an American CAR?...Not truck.


People have been saying that for years and nothing changes at GM or Ford. Also producing Impala's for my 75 year old father in law is getting them no where.

Another fault is marking up the vehicles they do sell so only a few can buy them. Cost for new GM trucks are through the roof. Why not sell 1000 trucks at 45 k instead of 100 at 60 k?

Dodge is doing the same with the Jeep. Things are cheap to make but here in Canada a new 4-door jeep is 40 k.

A lot more asian cars on the road because they build them well and price them to what people can afford.

 

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Ultimate Peach



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  posted on 11/27/2018 at 12:35 PM
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You are going to see more production moving outside of the US to avoid tariffs. The tariffs on imported steel and aluminum have really hurt the automotive industry, plus retaliatory tariffs on the vehicles if they are exported. Much of this is directly related to unintended consequences from the Trump tariffs. Not to mention higher labor costs in the US, there has never been a worse time to build autos in the USA.


Looks like free trader, Larry Kudlow is having enormous control over Trump with sound economic policies Kudlow must have to tuck his tail every time he sits in on economic strategy meetings with Trump.

For someone who boasts so much about his intelligence and business acumen, Trump has shown he is nothing more than a neophyte when it comes to what is best for America via his tariffs. He is hurting the people who voted for him.

 

Peach Master



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  posted on 11/27/2018 at 05:03 PM
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For someone who boasts so much about his intelligence and business acumen, Trump has shown he is nothing more than a neophyte when it comes to what is best for America via his tariffs. He is hurting the people who voted for him.


And they don't seem to care as long as people like Kavanaugh get a lifetime appointment, Saudi Arabia's killer MBS remain Jared's bank & we're protected from imminent invasion via central America.

 

Universal Peach



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  posted on 11/27/2018 at 05:22 PM
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It's a shame the Volt is being discontinued. It's very popular here in California.

I wasn't aware so many models were built out of the US.


The Volt is an impressive machine and was years ahead of its time when it debuted some years ago. However, while the actual model may be discontinued, its technology and the lessons GM engineers and designers learned from its production and continued improvements over its lifetime will be incorporated into the numerous completely new pure electric and hybrid vehicles GM has already announced it will be producing within a few short years.

So in essence the name "Volt" may disappear, but its technology will not. In fact, the Chevy CUV known as the "Bolt" is just such an example. It's basically a Chevy Volt in the body of the Chevy Trax small cross over vehicle (CUV) with the option of AWD....Just a hybrid rather than a pure internal combustion only vehicle currently in the Trax.....

What I am hoping for soon is a GM Sierra full size pick-up with Volt technology....That would be very cool. Especially if built in the USA and as mentioned above, didn't cost as much as a small house. 60K for a well equipped pick up truck seems to be the norm and is , frankly, absurd and way too pricey.

[Edited on 11/27/2018 by Chain]

 

Zen Peach



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  posted on 11/27/2018 at 05:29 PM
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Also producing Impala's for my 75 year old father in law is getting them no where.


This is definitely the President's fault!

 

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Universal Peach



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  posted on 11/27/2018 at 05:33 PM
quote:
quote:
You are going to see more production moving outside of the US to avoid tariffs. The tariffs on imported steel and aluminum have really hurt the automotive industry, plus retaliatory tariffs on the vehicles if they are exported. Much of this is directly related to unintended consequences from the Trump tariffs. Not to mention higher labor costs in the US, there has never been a worse time to build autos in the USA.


Looks like free trader, Larry Kudlow is having enormous control over Trump with sound economic policies Kudlow must have to tuck his tail every time he sits in on economic strategy meetings with Trump.

For someone who boasts so much about his intelligence and business acumen, Trump has shown he is nothing more than a neophyte when it comes to what is best for America via his tariffs. He is hurting the people who voted for him.


Indeed....Trump proves practically daily that he has no business acumen nor even basic knowledge of micro or macro economics. He's a con man who's Daddy left him and his siblings a lot of money. Much of which Trump managed to lose whenever he actually attempted to start and operate a business on his own. Once Fred trump was dead and gone and no longer able to bail little Donnie out at every turn, he turned to other, more seedy individuals. And we all know who they are....

 

Ultimate Peach



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  posted on 11/27/2018 at 06:05 PM
quote:
quote:
Also producing Impala's for my 75 year old father in law is getting them no where.


This is definitely the President's fault!


The man said this and this is a direct quote.

Trump to Warren, MI in 2016: “If I’m elected, you won’t lose one plant, you’ll have plants coming into this country, you’re going to have jobs again, you won’t lose one plant.”


 

Ultimate Peach



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  posted on 11/27/2018 at 06:27 PM
quote:
quote:
Also producing Impala's for my 75 year old father in law is getting them no where.


This is definitely the President's fault!


Declining sales of a particular model is certainly not the president's fault, but creating an environment where plants are closing in the US and opening in other countries to avoid tariffs is. A new model could be made in those closing plants, but why would they? Steel and aluminum prices have skyrocketed in the US due to the tariffs and the car's price to foreign markets is now higher due to the increased material costs AND retaliatory tariffs. Add to that higher labor costs (that part isn't the President's fault), and the death nail has been dealt to the auto industry just a few years after the automotive industry seemed to have recovered.

 

Ultimate Peach



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  posted on 11/27/2018 at 06:33 PM
It also shows that decreasing fuel standards did nothing to help the automotive industry. It also shows that decreasing taxes was not particularly effective in keeping jobs in the US. Cheap materials is far more important when it comes to profits, and the cost effectiveness of operating plants in the US.
 

Ultimate Peach



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  posted on 11/27/2018 at 07:43 PM
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Cheap materials is far more important when it comes to profits, and the cost effectiveness of operating plants in the US.


That and cheaper labor is why first daughter, senior advisor, and true patriot Ivanka Trump produces most of her lines not in Ohio but in foreign countries.

I'm not sure why Republicans give Trump & family a carte blanche pass on the so called America First thing when the Trumps should lead by example. But the Republicans seem to give the Trumps a pass on everything. Deliver conservative judges, and all is OK.

 

Zen Peach



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  posted on 11/27/2018 at 07:48 PM
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They are eliminating the Chevy Cruze (Lordstown), Cadillac CT6 (Detroit/Hamtramck), Cadillac XTS (Oshawa Canada), Chevy Impalla (Oshawa Canada and Detroit/Hamtramck), Chevy Volt (Detroit/Hamtramck) and Buick LaCrosse (Detroit/Hamtramck). The Warren Michigan plant is a transmission plant for now discontinued cars, but also for the current line of Acadias and Malibus. The Baltimore plant builds the Allison transmissions used in 2500 and 3500 series pickup trucks.


This while they newly announced Blazer will be built in Mexico, where the Terrain and Equinox are also built and the Buick Envision is built in China among other vehicles GM brings in from Korea. Can't bring those vehicles here and employ US workers for those. Nope.

I don't fault GM eliminating certain models and plants due to declining sales of some models. What I have a problem with growing foreign production while there are plants here and people here that could build those cars. If they want to discontinue models made here, they should build new or other models in those facilities.





https://www.cnn.com/2018/11/26/business/gm-cars-dropping-production/index.h tml

https://www.cnn.com/2018/11/27/opinions/trump-general-motors-economic-cost- weinberg/index.html





[Edited on 11/28/2018 by gina]

 

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Ultimate Peach



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  posted on 11/27/2018 at 08:23 PM
quote:
quote:
Cheap materials is far more important when it comes to profits, and the cost effectiveness of operating plants in the US.


That and cheaper labor is why first daughter, senior advisor, and true patriot Ivanka Trump produces most of her lines not in Ohio but in foreign countries.

I'm not sure why Republicans give Trump & family a carte blanche pass on the so called America First thing when the Trumps should lead by example. But the Republicans seem to give the Trumps a pass on everything. Deliver conservative judges, and all is OK.


You make it too simple. There are 3 types of Trump fans.

1. The rich Trump fan who likes him for cutting taxes.

2. The religious Trump fan who likes Trump for his conservative court picks.

3. The typical Trump fan who likes Trump because he dislikes the same people as they do, and also because Liberals hate him.

 

Peach Master



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  posted on 11/27/2018 at 08:29 PM
He will find somebody to blame. We can bet on that.

 

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Ultimate Peach



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  posted on 11/27/2018 at 08:39 PM
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He will find somebody to blame. We can bet on that.


He already has - The Fed.

He is a pro at taking all the credit when there is any good news at all, and any bad news is always somebody else's fault. Always.

 

Maximum Peach



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  posted on 11/27/2018 at 10:06 PM
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It's a shame the Volt is being discontinued. It's very popular here in California.

I wasn't aware so many models were built out of the US.


GM has so many US vehicles across so many brands it is a lengthy list:

Chevy BoltEV - Michigan
Chevy Camaro - Michigan (same as the Cadillac CTS and ATS)
Chevy Colorado - Missouri (same as the GMC Canyon)
Chevy Corvette - Kentucky
Chevy Cruze - Ohio (discontinued - Lordstown plant idling)
Chevy Equinox - Mexico and Canada (same as the GMC Terrain)
Chevy Impala - Canada (same as the Cadillac XTS)(discontinued - Oshawa plant idling)
Chevy Impala - Michigan (same as the Cadillac CT6) (discontinued - Hamtramck plant idling)(CT6 production may move to another plant)
Chevy Malibu - Kansas (same as Cadillac XT4)
Chevy Silverado - Canada, Indiana, Michigan, Mexico (same as GMC Sierra)(Oshawa plant idling truck production to be absorbed by Indiana)
Chevy Sonic - Michigan (still available previously announced discontinued)
Chevy Spark - South Korea
Chevy Tahoe - Texas (same as the GMC Yukon and Cadillac Escalade)
Chevy Trax - South Korea and Mexico
Chevy Volt - Michigan (discontinued - Hamtramck plant idling)

Buick Regal - Germany
Buick LaCrosse - Michigan (discontinued - Hamtramck plant idling)
Buick Cascada - Poland
Buick Enclave - Michigan
Buick Encore - Korea
Buick Envision - China

Cadillac XT5 - Tennessee (same as GMC Acadia)

It's a lot of vehicles!

Some of these plants do export from here to the world. Such at the Arlington Texas plant being the only producer of Tahoes, Yukons and Escalades. Formerly these vehicles were also built in Mexico and Russia, but now they consolidated to Texas. Then outside of North America, Chevy has several other plants around the globe to service regional markets. For instance GM has 5 major plants in China that build 18 models, some unique to that market and some models that are sold here. GM also has major plants in South Korea, Thailand, South America just to name a few. The Chevy Cruze which was built in the plant down the road from me, was rarely exported anywhere because they also built the Cruze in Mexico, China, Russia, Vietnam among other locations. The Malibu is built in Kansas, but then also China and South Korea. If you buy a Malibu in North, South or Central America it probably comes out of Kansas. Anywhere else it is probably coming from Asia.

I've talked to people that think if you are buying, say a Lincoln it is built in the US, which alot of people just don't think about it. Lincoln's MKC is built in the US. Their MKZ is built in Canada.

I try to go to the Cleveland Auto Show every year. I remarked on here that looking at the vehicles on display that Kia actually had more cars there that were built in the US than Buick did.

Different parts of the country seem to have a different mix of vehicles I've noticed. Around here there are a TON of Buick Encores. They went from selling 32k in 2013 to 49k in 2014, to 67,5xx, to 78,5xx, to 88k and this year is on pace for about 5,000 more units than 2017. All from Korea. But hey Grandma is driving around in a Buick. It is by far Buick's #1 seller in the US. Their #2 seller is the larger Enclave that is built in Michigan at the same plant as the Chevy Traverse. Then Buick's #3 seller is the Envision...from China, they sold 41,040 of them here last year. All from China. If you add up all the foreign built Buicks sold in the US last year, about 150k of their 219k total units which makes roughly 68%.

[Edited on 11/28/2018 by nebish]

 

Maximum Peach



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  posted on 11/27/2018 at 10:18 PM
quote:
You are going to see more production moving outside of the US to avoid tariffs. The tariffs on imported steel and aluminum have really hurt the automotive industry, plus retaliatory tariffs on the vehicles if they are exported. Much of this is directly related to unintended consequences from the Trump tariffs. Not to mention higher labor costs in the US, there has never been a worse time to build autos in the USA.


Raising any input cost does to some degree or another impact the overall cost, competitiveness and pricing of the product.

But I don't think you would say that it is always bad to raise the cost of something in order to achieve an objective, would you? I mean if we wanted, to raise wage and benefits - that has an impact on cost, competitiveness and pricing of goods and services. Or if we wanted to impose costs on manufacturers for regulatory requirements...that is an input cost that effects how companies.

Or looking at other angle, raising the gas tax. Is raising the gas tax bad if the goal is to fund something meaningful with that added tax revenue?

The problem isn't that the US imposed steel and aluminum tariffs to sustain that industry here. No. The problem is the US hasn't imposed enough tariffs across the board. Corporations are going to do what is in their best interest. They do not merely exist as job centers for our population to find work at. So as corporations do as they must for a variety of reasons, they try and cut costs and outsourcing and offshoring allows them to do that. So let's remove that incentive. If GM faced a 100% tariff on autos exported to the US do you really think they would have decided to build the new Chevy Blazer in Mexico? Absolutely not.

We don't know yet if any of these plants will get new models next year. Hopefully they do. If not, if GM is going to build new models outside the US for sale here, with the production capacity and the workforce that they just turned their back on, then they should be punished. It's not that they should be punished for simply discontinuing cars that were declining in sales. That is the right thing for them to do. It is what they replace those sales with and what they create and build here that matters.


[Edited on 11/28/2018 by nebish]

 

Maximum Peach



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  posted on 11/27/2018 at 10:28 PM
quote:
quote:
You are going to see more production moving outside of the US to avoid tariffs. The tariffs on imported steel and aluminum have really hurt the automotive industry, plus retaliatory tariffs on the vehicles if they are exported. Much of this is directly related to unintended consequences from the Trump tariffs. Not to mention higher labor costs in the US, there has never been a worse time to build autos in the USA.


Perhaps a change in the Paradigm would be beneficial. Perhaps U.S. auto makers could start producing vehicles people are proud to own, good looking cars that speak to youth. Cars that are dependable and not shabbily produced.

How many people here own an American CAR?...Not truck.


I have an American car, a Chevy Malibu. It is a fine car. A 2009. I'm not really proud of it, just a car. It was assembled in the US with the major components, the engine and transmission also being assembled here. I wouldn't buy anything else. I've considered other vehicles or when my wife replaces hers, I look. If it isn't assembled here and if the engine and transmission isn't from here and if the overall parts content of it are not significantly US, then I am not interested. Otherwise I have about a dozen old Jeeps. My wife drives a Tahoe. But that Malibu and my 2001 Cherokee are the primary transportation of mine.

I think what you drive does say something about you. Most people probably don't look at it that way. People make their own decisions for their own reasons. Plenty of US cars and trucks are well built and priced competitively vs imported models. If pass somebody driving an imported US or foreign car, yeah I give them a dirty look. Do they care, or even know. It doesn't matter. I know.

 

Maximum Peach



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  posted on 11/27/2018 at 10:34 PM
quote:
quote:
Perhaps a change in the Paradigm would be beneficial. Perhaps U.S. auto makers could start producing vehicles people are proud to own, good looking cars that speak to youth. Cars that are dependable and not shabbily produced.

How many people here own an American CAR?...Not truck.


People have been saying that for years and nothing changes at GM or Ford. Also producing Impala's for my 75 year old father in law is getting them no where.

Another fault is marking up the vehicles they do sell so only a few can buy them. Cost for new GM trucks are through the roof. Why not sell 1000 trucks at 45 k instead of 100 at 60 k?

Dodge is doing the same with the Jeep. Things are cheap to make but here in Canada a new 4-door jeep is 40 k.

A lot more asian cars on the road because they build them well and price them to what people can afford.


There is no reason for anyone to lower the price of Chevy Trucks or Jeeps..because they are selling record numbers of them. In October Jeep Wrangler sales YTD surpassed all the Wranglers sold in 2015 and there are still 2 months of sales to log yet. Sales and demand for SUVs and trucks are no problem. Lowering the prices would likely yield minimal additional sales...which is why the opposite has been happening. They raise the prices and people keep beating down the door to buy them.

 

Peach Master



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  posted on 11/27/2018 at 10:49 PM
I used to do the advertising photos at a local GM dealer and they had a lot of vehicles being built in Mexico ten years ago. I do wonder how much of the slow wage growth is due to automation.

 

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