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Re: American carmakers are clueless (no LBC)

To: <spridgets@autox.team.net>
Subject: Re: American carmakers are clueless (no LBC)
Date: Tue, 22 Nov 2005 19:30:09 -0500 reply-type=response
References: <E4A374257A3CD1438C6EAE5FCD9A1EF501B8A7FB@idbexc02.americas.cpqcorp.net> <43833B9A.9020306@earthlink.net> <006201c5ef85$924aed80$f675fea9@p0k7l8> <000401c5ef89$4d19ed70$6664640a@vgl.cvg.ucdavis.edu>
Where did you get your facts Glen?  GM is not dumping "all" of their small 
and midsize production capacity.  This link will give you a list of what 
plants are actually being closed.   http://tinyurl.com/7rjuz

They are closing the Oklahoma City assembly plant that builds a midsize SUV 
that isn't selling well.  They have another plant that builds the same 
vehicle.  The Doraville, GA plant builds full size vans that are slow 
sellers these days.  They have other van plants.  The Lansing Craft Centre 
builds the very low volume Chevy SSR.  They are closing down one Saturn 
line, not all of them.  They are eliminating unneeded production shifts at 
several other plants.  They are closing a non-productive (thanks UAW!) truck 
engine plant, and again they have other engine plants.  They are closing a 
small metal fab plant in Pittsburgh and another in Lansing, MI.  They are 
closing some redundant parts distribution centers.  All of these moves are 
to reduce unneeded production capacity.

Hardly dumping all of their small and mid-size capacity.  And as far as the 
30,000 jobs - nobody - I repeat *nobody* is getting layed off.  GM cannot 
lay anyone off per their contract with the UAW.  Unneeded hourly employees 
go into a "job bank" and get 95% of their pay until they are called back to 
work.  I know people that have been in the job bank for years.  They sit at 
home and get paid.  These positions will be eliminated through attrition - 
people retiring or quitting.

IMHO, GM is doing what they need to do to stay competitive.  They currently 
have $28 billion in cash and are making these moves to improve their 
competitiveness long before they might have to consider bankruptcy.  Yes, 
they have been building "bloated toads" for some time - because that's what 
the buyers out there wanted.  Peter C's Janesville, WI plant is an example. 
Janesville builds Suburbans, Tahoes, and Yukons.  And even in today's market 
there are enough people out there that still want them that GM has no plans 
to close the plant.  GM is in business to make money.  Janesville makes 
money.  GM lost money on every Chevy Cavalier ever built.  Go figure.

No, I don't work for GM, or Ford, or Chrysler.

Rick

----- Original Message ----- 
From "Glen Byrns" <grbyrns at ucdavis.edu>
To: <spridgets@autox.team.net>
Sent: Tuesday, November 22, 2005 12:22 PM
Subject: American carmakers are clueless (no LBC)


>I was shocked at the complete cluelessness of the whole thing.  In the last 
>few days I see GM dump all their small and mid-size production capacity, 
>and bet the whole pot on large SUVs and trucks where they get the highest 
>profit margin.
>
> A story yesterday noted how the new American car hybrids will only get 1 
> or 2 MPG better than their conventional powered twins.  They pissed away 
> the potential gas savings by adding extra weight and power.
>
> A story last week said that the big automakers were tepidly supporting the 
> upcoming importation of several different micor-cars under their labels as 
> a way of building brand loyalty in new car buyers with the hope that they 
> will later buy one of those bloated toads they continue to produce.
>
> American car makers remain cluless to a fault.  Betting on a future of 
> limitless cheap gas and environment raping tanks.  Start the pool on GM 
> declaring bankruptcy and getting a bailout from our taxes.
>
> Glen Byrns
> (obviously woke up wearing his cranky pants)




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