Saw a news story last night about GM planning to close several plants, do away with some of their passenger cars, and eliminate 14,000+ jobs...not too rosy a picture for one of the top three...
GM slimming down
- Thread starter glwood
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If another bailout were to happen, I think Ford is the only one that would be able to survive.
Ford is doing away with the majority of their cars they said, which makes sense. I'm sure you saw that on the news a while back. They're only going to continue to produce the Mustang, trucks, and some electric vehicles.
No one buys sedans anymore. Look all over the road and the only thing you see is trucks, SUVs, and crossovers... well, and hybrid / electric vehicles of course.
So I suspect the fact that they are going to eliminate a lot of their passenger cars is taking a cue from Ford's playbook.
Ford is doing away with the majority of their cars they said, which makes sense. I'm sure you saw that on the news a while back. They're only going to continue to produce the Mustang, trucks, and some electric vehicles.
No one buys sedans anymore. Look all over the road and the only thing you see is trucks, SUVs, and crossovers... well, and hybrid / electric vehicles of course.
So I suspect the fact that they are going to eliminate a lot of their passenger cars is taking a cue from Ford's playbook.
Here's a great book if anyone is interested in the background of the American Automobile Industry. Today's problems are just another chapter in the boom and bust cycle they have experienced throughout their history. "Those who fail to learn from history are doomed to repeat it".
Crash Course: The American Automobile Industry's Road from Glory to Disaster
Or if you want to listen to it while driving your Jeep:
Crash Course: The American Automobile Industry's Road from Glory to Disaster
Crash Course: The American Automobile Industry's Road from Glory to Disaster
Or if you want to listen to it while driving your Jeep:
Crash Course: The American Automobile Industry's Road from Glory to Disaster
Ford took a big gamble and it paid off.
In other big company news--Ive heard Verizon Wireless is cutting 44,000 jobs. They are one of our bigger clients where I work in helping put up cell towers.
In other big company news--Ive heard Verizon Wireless is cutting 44,000 jobs. They are one of our bigger clients where I work in helping put up cell towers.
Totally agree with this. It is indeed a "boom and bust" cycle, and over the course of time, it's normal.
When the gas prices go through the roof, no one wants a truck or SUV, just like they didn't in 2008 (when Ford was hurting). But now that gas prices are reasonable again, people are out buying trucks and SUVs again... It will happen all over again when gas prices go back up, you can count on it.
Of course this time these companies will hopefully be better prepared by then, as they'll have more electric vehicle offerings.
Saving money. They are moving a bunch of accounting and IT jobs overseas. One of our contacts said they are offering severance packages to folks who have been there more than 20 years I think. XX amount of dollars for each year there. Which would be pretty hefty payouts for those who volunteer.
We do a lot of NEPA work for them. Essentially looking at floodplains, tribal history, threatened and endangered species in areas where they want to put up towers. They are going for one more large push of build outs here in Northern CO then they are slowing down operations (at least here)
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Don't forget the oil embargo of the '70s. That started GM on their whole "downsizing" path, and gems like the 5.7 diesel and the Cadillac 4-6-8 engines.
The more things change, the more they stay the same.....
Makes sense... the moving jobs overseas. People don't like it, but it's inevitable at some point.
Verizon clearly has the best network, but man do they charge for it! Apparently there's an extra $20 of taxes and fees that get tacked on a month to your phone bill.
Well, we're in the middle of the trade war and there's bound to be casualties. GM definitely wouldn't be so vulnerable if they had played more like Ford, but the steel tariffs are now hitting them while they're down. Sounds like Trump is threatening to cut subsidies to GM in response to the announcement, so GM's looking at getting squeezed from both ends.
Of course, there's also talk that he could impose tariffs on foreign cars with an announcement next week, which could work in GMs favor.
Either way, there's a lot of outside influence beyond the boom and bust nature of this market and I'm sure we'll see China make some plays that swing it around even more.
Of course, there's also talk that he could impose tariffs on foreign cars with an announcement next week, which could work in GMs favor.
Either way, there's a lot of outside influence beyond the boom and bust nature of this market and I'm sure we'll see China make some plays that swing it around even more.
I live about 10 miles from GMs plant in Lordstown Ohio. I never worked there.
One of the workers that was in the meeting yesterday morning said the production of the Cruze is ending. There has been no announcement that the plant will be closed. There also has been no announcement that anything else will be built there, so they're in a wait and see position. Only time will tell. FWIW that plant has been down to one shift for the last six months and was down to two shifts for the prior 16 months.
One of the workers that was in the meeting yesterday morning said the production of the Cruze is ending. There has been no announcement that the plant will be closed. There also has been no announcement that anything else will be built there, so they're in a wait and see position. Only time will tell. FWIW that plant has been down to one shift for the last six months and was down to two shifts for the prior 16 months.
I was interested in the comments from a senator on NPR today saying the tax payers bailed GM out 10 years ago and this is the thanks we get. Then the UAW also wants to fight the downsizing and restructuring. It's as if GM is something other than a business.
The markets, influences and propping up is so tangled and far from reality that I don't know what should happen. It all feels like a house of cards.
I think that was Trump that said that (although a senator may have said that too) but I'm pretty sure GM knows that they got bailed out for the sake of the economy and not because of how hospitable we were feeling towards them at the time.
Just the bank. They are doing great! It makes me feel good.Just to clarify, your bank... not your bank account?
KMET
TJ Enthusiast
If not for climate change we could produce our own stuff again.
Getting a little political in here....
Getting a little political in here....
"tax payers bailed GM out 10 years ago and this is the thanks we get."
Actually, the federal government recovered $39b of the $51b they invested to keep GM afloat. In return for their $12b investment, 1.2 million people kept their jobs, and the government got $34.9b in tax revenue. Seems like a pretty fair return on investment and nothing GM needs to apologize for.
The more you know..
https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization
"Through the Troubled Asset Relief Program the US Treasury invested a total $51 billion into the GM bankruptcy.[91] Until December 10, 2013, the U. S. Treasury recovered $39 billion from selling its GM stake. The final direct cost to the Treasury of the GM bailout was $11[92]-12 billion ($10.5 billion for General Motors and $1.5 billion for former GM financing GMAC, now known as Ally).[93] Local tax incentives amounted to $1.7 billion, most of them in Michigan.[94][95] A study by the Center for Automotive Research found that the GM bailout saved 1.2 million jobs and preserved $34.9 billion in tax revenue.[93]"
Actually, the federal government recovered $39b of the $51b they invested to keep GM afloat. In return for their $12b investment, 1.2 million people kept their jobs, and the government got $34.9b in tax revenue. Seems like a pretty fair return on investment and nothing GM needs to apologize for.
The more you know..
https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization
"Through the Troubled Asset Relief Program the US Treasury invested a total $51 billion into the GM bankruptcy.[91] Until December 10, 2013, the U. S. Treasury recovered $39 billion from selling its GM stake. The final direct cost to the Treasury of the GM bailout was $11[92]-12 billion ($10.5 billion for General Motors and $1.5 billion for former GM financing GMAC, now known as Ally).[93] Local tax incentives amounted to $1.7 billion, most of them in Michigan.[94][95] A study by the Center for Automotive Research found that the GM bailout saved 1.2 million jobs and preserved $34.9 billion in tax revenue.[93]"