Breaking News: Temp. GM Closures for January

[The Critic]

Quote:
DETROIT - General Motors announced today a significant reduction of planned production for the first quarter of 2009 due to the ongoing and severe drop in industry sales, which were down 36 percent in November overall and 41 percent for GM (2007 vs. 2008). The impact of these and recently announced actions to adjust production with market demand, will result in the temporary idling of approximately 30 percent of GM's North American assembly plant volume during the first quarter of 2009 and will remove approximately 250,000 units from production.

The speed and severity of the U.S. auto market's decline has been unprecedented in recent weeks as consumers reel from the collapse of the financial markets and the resulting lack of credit for vehicle financing.

The following U.S., Canada and Mexico operations impacted by today's announcement include:

U.S.:

* Ft. Wayne (Ind.) - Chevy Silverado, GMC Sierra Light Duty Regular and Extended Cab
* Flint Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Regular and Crew Cab & Medium Duty
* Wentzville (Mo.) - Chevy Express, GMC Savanna
* Lansing Delta Township (Mich.) - Buick Enclave, GMC Acadia, Saturn Outlook
* Pontiac Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Extended Cab
* Spring Hill (Tenn.) - Chevy Traverse
* Fairfax Assembly (Kan.) - Chevrolet Malibu/Hybrid, Saturn Aura/Hybrid
* Arlington Assembly (Texas) - Full Size SUVs: Chevy Suburban, Tahoe & Tahoe Hybrid, GMC Yukon, Yukon XL & Yukon Hybrid, Cadillac Escalade/Escalade ESV & Escalade Hybrid
* Lansing Grand River (Mich.) - Cadillac STS & CTS
* Orion (Mich.) - Chevy Malibu, Pontiac G6
* Detroit-Hamtramck (Mich.) - Buick Lucerne, Cadillac DTS
* Shreveport (La.) - Chevy Colorado, GMC Canyon, Hummer H3 & H3T
* Bowling Green (Ky.) - Chevy Corvette, Cadillac XLR
* Wilmington (Del.) - Pontiac Solstice, Saturn Sky, Opel GT

Canada:

* Oshawa Consolidated - Chevy Impala
* Oshawa Truck - Chevy Silverado, GMC Sierra Light Duty Extended and Crew Cab
* CAMI - Chevy Equinox, Pontiac Torrent

Mexico:

* Silao - Chevy Silverado, GMC Sierra Light Duty Crew Cab, Chevy Avalanche, Cadillac Escalade EXT
* Ramos 2 - Chevy HHR, Saturn VUE, Chevy Captiva
* San Luis Potosi - Chevy Aveo, Pontiac G3

As a result of these assembly plant actions, GM will also continue to assess its powertrain and stamping capacity needs and make adjustments as appropriate.

http://www.gminsidenews.com/forums/f12/b...-january-72646/

Also: http://www.640toronto.com/Channels/Reg/NewsLocal/Story.aspx?ID=1046361

 

[Kestas]

The union members won't be hurting. This is just a temporary situation where they will be getting 80% of their wages. What they will really miss is their overtime pay.

Won't this 80% pay be coming from the government (paid in earlier by the employer) and not from GM? If so, it's rather smart of GM to do this... idle their cash outflow while having the goverment pick up the tab for union pay.

 

[Cutehumor]

I thought GM had to pay 95% of UAW pay if a plant idles or shuts down?

 

[ToyotaNSaturn]

Yes. This is killing GM to keep paying people to sit home and do nothing. It's privatized welfare.

Welfare never works in the long run.

If GM wasn't so [censored] stupid, they would have kept making small Saturns in the "Saturn" plant (which is no longer), thus they would have made a killing on small cars during the high gas prices.

They killed the Saturn name by melding it as another GM unit. As a result, they lost the opportunity to sell a LOT of true Saturns (ones that are plastic, small and get nearly 40MPG) to the public when the time came. Sure GM gave the people what they wanted: SUV's, trucks, etc. That's good and that makes good sense. However GM is too big of a ship to change quickly to sell a lot of small cars, like they could have.

 

[steve20]

ceasing production on the Corvette for January-this IS the Apocolypse

Steve

 

[Gary Allan]

Originally Posted By: Cutehumor
I thought GM had to pay 95% of UAW pay if a plant idles or shuts down?


Sub pay was initiated by the automakers to eliminate production loses from retraining people who got other jobs while on lay off. The idea was to make up the difference between unemployment and a 40 hour work week with benefits continuing. That allowed the automakers (essentially) fixed labor costs.

When the unemployment runs out ..the company picks up the full tab.

 

[XS650]

Originally Posted By: steve20
ceasing production on the Corvette for January-this IS the Apocolypse

Steve


It is. As of a few days ago they were scheduling production without constraints for January
http://www.corvetteblog.com/archives/cat-corvette-production.html

I wonder if their sales have tanked of if components won't be available becasuse of other plant shutdowns.

Edit: Probably sales, they shut down for a week in September because of excess stock and the market is worse now.

 

[ARB1977]

If GM workers are getting 90% of their pay, isnt that still more than what the forgin car makers are making?

 

[rg200amp]

Originally Posted By: ARB1977
If GM workers are getting 90% of their pay, isnt that still more than what the forgin car makers are making?


If GM is going to pay them over 90% for doing nothing, Why not just keep paying them the 100% and get something out of it??

LOL

 

[hone eagle]

SUB-suplamental unemployment benefits-added to UI to bring you to 90 % of wages before tax,runs out when UI runs out ,in Canada 42 weeks or if your in a "hard struk area"52 thats it.

 

[hone eagle]

And I almost forgot SUB was a fund contributed by workers(wage give-ups) and the company

 

[GMBoy]

Originally Posted By: Kestas
The union members won't be hurting. This is just a temporary situation where they will be getting 80% of their wages. What they will really miss is their overtime pay.

Won't this 80% pay be coming from the government (paid in earlier by the employer) and not from GM? If so, it's rather smart of GM to do this... idle their cash outflow while having the goverment pick up the tab for union pay.



Their pay will unemployment - then GM pays what's called subpay to get them to 85% of their pay.