GM To close 9 Assembly, Stamping & Powertrain

[Mervz]

http://www.gm-trucks.com/home/content/view/247/1/

 

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.

[mwalls54]

Bunch of crap if you ask me.

[Dylan06SS]

I've seen it coming for months. This is the reason I bought all the GM stock I could when they went 'junk status' b/c this is the begining of their recovery. I see 2 things happening...

 

1) layed off employees will unload all their EPP stocks, virtually eliminating EPP loss by GM by these plants.

2) other investors will see the measures and buy into GM

 

both of these are gonna increase my share value.... retirement here I come.

[CoolBlueSS]

I wonder how things would be without a union.

[FSU VHO]

Better

[edessa]

The union is what screwed GM, IMO.

[Dylan06SS]

I can see the flames starting on this one already, but unions are a drain on the american economy. At one time they made sense... but they haven't for a VERY long time now. Theres enough government regulation, standards, and laws in place to protect the workforce now without throwing some teamsters into the mix.... its a parasitic drain on US industries and needs to be eliminated, but I doubt it'll ever happen.

[XGMTech]

I can see the flames starting on this one already, but unions are a drain on the american economy. At one time they made sense... but they haven't for a VERY long time now. Theres enough government regulation, standards, and laws in place to protect the workforce now without throwing some teamsters into the mix.... its a parasitic drain on US industries and needs to be eliminated, but I doubt it'll ever happen.

<{POST_SNAPBACK}>

Well spoken Dylan.

[detjoe]

sad to say, but unions just protect themselves not the workers they are surposed to protect/represent. It makes me sick that people suffered to create unions and now we dropped the ball in keeping them working. I goto work everyday and do my best, while I see the Union rep be the most useless, unapproachable, lazy person on the job???? Did they close the silverado plant in ontario?

[Aspentaylor]

Maybe that is why the dumb sh!ts will not settle my lawsuit against them! GM is claiming my aftermarket accessories were the reasons for my 9 batteries. This all came out at the settlement conference. GM is still trying to blame my cell phone charger and horse trailer. Fortunately I have documentation that shows I bought my horse trailer after 5 batteries and my cell phone charger after 7 batteries. My attorney actually told me I could settle for a couple grand and call it quits. Yeah right! Sorry had to rant. GM is being cheap!

[Bigdogx]

I've seen it coming for months. This is the reason I bought all the GM stock I could when they went 'junk status' b/c this is the begining of their recovery. I see 2 things happening...

 

1) layed off employees will unload all their EPP stocks, virtually eliminating EPP loss by GM by these plants.

2) other investors will see the measures and buy into GM

 

both of these are gonna increase my share value.... retirement here I come.

<{POST_SNAPBACK}>

 

 

It's nice to see while 30,000 people are going to be getting axed a month before x-mas that all you give a crap about is your stocks rising!

[CASEY]

I've seen it coming for months. This is the reason I bought all the GM stock I could when they went 'junk status' b/c this is the begining of their recovery. I see 2 things happening...

 

1) layed off employees will unload all their EPP stocks, virtually eliminating EPP loss by GM by these plants.

2) other investors will see the measures and buy into GM

 

both of these are gonna increase my share value.... retirement here I come.

<{POST_SNAPBACK}>

 

They aren't out of trouble yet. GM needs to build vehicles that people want to buy without having to give them away. GM cars have been crap for a long time; full size trucks and suv's are the only thing GM does right. They need to cut more.

[TBSS]

If all GM does is shed or restructure its financial burdens (pension plans, etc.) they will still be ****ed. They don't have one car I would buy right now, and with the way gas is (and where it likely will be for a while) if all you have to brag about is SUV's and a new full size platform with 6.2L motors that get 18-20 MPG, you're screwed. Hate to say it, but huge trucks and SUV's are like the dinosaurs before the big asteroid hit - on borrowed time. If, as an automaker, you don't have fuel-efficiant vehicles or alternative fuel vehicles or hybrid vehicles in the pipeline, you're in bad shape, and this is where GM is. My $.02.

[CoolBlueSS]

GM neds to be active in the market, not reactive to the market.

 

Hybrid vehicles are a waste of money, imo. Fuel milage is maybe 1-2 MPG better for 5K-8K more than the gas equivalent. They need to make cars that people want to drive.

[Dylan06SS]

It's nice to see while 30,000 people are going to be getting axed a month before x-mas that all you give a crap about is your stocks rising!

<{POST_SNAPBACK}>

 

It is nice b/c the funds I used to purchas GM stock when it was at its very worse in some small way go towards keeping the corporation afloat. Yes, its shitty that 30,000 people are going to get cut loose, but what else can/should I do to prevent that?

 

At least I have the balls to reinvest some money into GM and back it. Most people only buy the vehicles, bitch about the quality, and take advantage of any incentive, warranty, or discount they can get. So who is actually doing more to back up GM's 30,000 recently laid off employees?

 

My stock rising means that the company I have invested in is making a recovery so they don't have to lay off another 30,000 next year at this time... so yes... yes it is VERY NICE.

 

 

 

Please think before making an ignorant post next time.