Car Chat General discussion about Lexus, other auto manufacturers and automotive news.

GM closing Ontario, Detroit, and Ohio factories

Thread Tools
 
Search this Thread
 
Old 02-25-19 | 06:20 PM
  #676  
Toys4RJill's Avatar
Toys4RJill
Thread Starter
Lexus Fanatic
 
Joined: Nov 2011
Posts: 31,645
Likes: 73
From: ON/NY
Default

Originally Posted by JDR76


Shortly after the tax break they reduced staffing by about 20,000.
What was the alternative? To leave completely? When did this all happen?
Old 02-25-19 | 06:26 PM
  #677  
JDR76's Avatar
JDR76
Lexus Champion
 
Joined: Nov 2013
Posts: 12,551
Likes: 1,630
From: WA
Default

The alternative was to move production of new planes to other states.

I don’t recall the exact timeline. About 4 years ago.

My my point is simply that this is the game many (most?) large corporations play. The incentives in Illinois pulled Boeing headquarters out of Seattle. The SC incentives got Boeing to open a production facility in Charleston.
Old 02-25-19 | 06:31 PM
  #678  
MattyG's Avatar
MattyG
Lexus Champion
 
Joined: Jul 2013
Posts: 2,300
Likes: 4
From: RightHere
Default

In Boeing's case, you can never leave. It's part of a very core aviation/defence infrastructure. You don't build Dreamliners in places other than the US. Too much knowledge and engineering. Airbus/Aerospatiale is the same. You sell airplanes to other countries, but you don't design/build them there. You can outsource common parts. Cars are a different thing. Everybody can build a car.
Old 02-25-19 | 06:33 PM
  #679  
Toys4RJill's Avatar
Toys4RJill
Thread Starter
Lexus Fanatic
 
Joined: Nov 2011
Posts: 31,645
Likes: 73
From: ON/NY
Default

Originally Posted by JDR76
The alternative was to move production of new planes to other states.

I don’t recall the exact timeline. About 4 years ago.

My my point is simply that this is the game many (most?) large corporations play. The incentives in Illinois pulled Boeing headquarters out of Seattle. The SC incentives got Boeing to open a production facility in Charleston.
I understand what you were trying to say. I just don't think there is anything wrong with it. These corporations like GM in certain states create tremendous value to a particularly community.
Old 02-25-19 | 06:34 PM
  #680  
JDR76's Avatar
JDR76
Lexus Champion
 
Joined: Nov 2013
Posts: 12,551
Likes: 1,630
From: WA
Default

Not really. Airbus now builds A320s in China. We have an interiors finishing center there too. Lots of production in Brazil at Embraer, which Boeing is now partnering up with. Not nearly as easy as cars though, so point taken.
Old 02-25-19 | 06:35 PM
  #681  
JDR76's Avatar
JDR76
Lexus Champion
 
Joined: Nov 2013
Posts: 12,551
Likes: 1,630
From: WA
Default

Originally Posted by LexsCTJill


I understand what you were trying to say. I just don't think there is anything wrong with it. These corporations like GM in certain states create tremendous value to a particularly community.
I don’t either.
Old 02-25-19 | 06:36 PM
  #682  
mmarshall's Avatar
mmarshall
Lexus Fanatic
 
Joined: Oct 2003
Posts: 91,591
Likes: 88
From: Virginia/D.C. suburbs
Default

Originally Posted by MattyG
Yes the Japanese companies pay less but they don't lay off their workers.
The mainstream Japanese companies also wouldn't dream of dropping all of their sedans and converting their entire line-ups to trucks/SUVs. Any corporate manager even suggesting something like that would probably be out of a job that very afternoon.

The UAW/Unifor can be blamed for being shortsighted because they overvalue their members' skills. They don't have the monopoly in Detroit they once had.
Monopoly or not, I have to disagree with the idea that UAW skills are overrated. You cannot put a monkey on the assembly line and expect even a reasonably well-made vehicle. Even with robots and automation doing much of the physical work today, sharp eyes, sharp skills, and sharp minds are still needed to oversee the results. And one won't learn those skills by reading auto forums like this....it takes experience.
Old 02-25-19 | 06:40 PM
  #683  
MattyG's Avatar
MattyG
Lexus Champion
 
Joined: Jul 2013
Posts: 2,300
Likes: 4
From: RightHere
Default

Originally Posted by JDR76
Not really. Airbus now builds A320s in China. We have an interiors finishing center there too. Lots of production in Brazil at Embraer, which Boeing is now partnering up with. Not nearly as easy as cars though, so point taken.
Yes I agree about outsourcing, but the core tech and innovation with the stuff that essentially is a trickle down from advanced projects stays in-country. Things with wings can be assembled wherever. Absolutely 320s get built in China, it is a gigantic growth market. But Airbus A320s have been around forever, so the Chinese already have the tech for that airplane in their hands. Cars/SUVs? Easy.
Old 02-25-19 | 06:40 PM
  #684  
Toys4RJill's Avatar
Toys4RJill
Thread Starter
Lexus Fanatic
 
Joined: Nov 2011
Posts: 31,645
Likes: 73
From: ON/NY
Default

Originally Posted by JDR76


I don’t either.
What I am surprised about the Oshawa plant situation is that the Ontario government is not trying offer anything. In contrast, they just recently gave Toyota $120 million for Woodstock. So I wonder why nothing to keep GM in Oshawa?
Old 02-25-19 | 06:43 PM
  #685  
mmarshall's Avatar
mmarshall
Lexus Fanatic
 
Joined: Oct 2003
Posts: 91,591
Likes: 88
From: Virginia/D.C. suburbs
Default

Originally Posted by LexsCTJill


What I am surprised about the Oshawa plant situation is that the Ontario government is not trying offer anything. In contrast, they just recently gave Toyota $120 million for Woodstock. So I wonder why nothing to keep GM in Oshawa?

Why throw money away, needlessly, at GM, if they have no intention of keeping the Oshawa plant open more than maybe another year or so? That's like just feeding more coins down the slot of an inoperative (or almost inoperative) vending machine.
Old 02-25-19 | 06:46 PM
  #686  
Toys4RJill's Avatar
Toys4RJill
Thread Starter
Lexus Fanatic
 
Joined: Nov 2011
Posts: 31,645
Likes: 73
From: ON/NY
Default

Originally Posted by mmarshall
Why throw money away, needlessly, at GM, if they have no intention of keeping the Oshawa plant open more than maybe another year or so? That's like just feeding more coins down the slot of an inoperative (or almost inoperative) vending machine.
GM can agree to stay for a predetermined amount of time.
Old 02-25-19 | 06:50 PM
  #687  
MattyG's Avatar
MattyG
Lexus Champion
 
Joined: Jul 2013
Posts: 2,300
Likes: 4
From: RightHere
Default

Originally Posted by mmarshall
The mainstream Japanese companies also wouldn't dream of dropping all of their sedans and converting their entire line-ups to trucks/SUVs. Any corporate manager even suggesting something like that would probably be out of a job that very afternoon.
Yes. Ford abandons an excellent vehicle with great styling - Fusion. Toyota keeps Camry and invests in a new platform. GM slows sedan sales despite strong CUV sales.


Monopoly or not, I have to disagree with the idea that UAW skills are overrated. You cannot put a monkey on the assembly line and expect even a reasonably well-made vehicle. Even with robots and automation doing much of the physical work today, sharp eyes, sharp skills, and sharp minds are still needed to oversee the results. And one won't learn those skills by reading auto forums like this....it takes experience.
It comes down to what does the corporation owe the worker and what does the worker owe to the corporation. Somebody trains those workers. If they came perfectly pre-trained for the job, they would have job portability. Somebody hires them and invests in them. The problem is that the company doesn't want to keep them around anymore. It's done with them. They are a spent resource. The question is: why did this company come to the US taxpayer when it was in trouble and who is it listening to now. Not the taxpayer or local municipalities. It's listening to Wall Street.
Old 02-26-19 | 02:54 PM
  #688  
Toys4RJill's Avatar
Toys4RJill
Thread Starter
Lexus Fanatic
 
Joined: Nov 2011
Posts: 31,645
Likes: 73
From: ON/NY
Default

This story about GM and their plant closure just continues to fascinate me.

https://www.cnn.com/2019/02/26/busin...uit/index.html

The United Auto Workers union sued General Motors on Tuesday, claiming the company's plan to shutter three auto plants violates the union's labor contract.

The lawsuit, filed in the Northern District of Ohio, asks the court to order GM to reverse its decision to close plants in Baltimore; Lordstown, Ohio; and Warren, Michigan. It also seeks damages for affected employees, including back wages and benefits.
The UAW says the closings breach a 2015 labor agreement that "prohibits the Company from closing or idling any plant during the term of the Collective Bargaining Agreement." GM (GM), along with Ford (F) and Fiat Chrysler (FCAU), has contracts with the UAW that are set to expire in September.The Lordstown plant is scheduled to close next week and the other two plants are set to do the same in coming months.
GM said in a statement that the company is not in violation of its labor contract with the union. "The announcements made by General Motors on November 26 do not violate the provisions of the UAW-GM National Agreement. We continue to work with the UAW on solutions to our business challenges," the statement said.
GM announced a major restructuring in November, including the closure of five plants in North America and the reduction of its salaried workforce by 15%. GM laid off 8,000 salaried workers, and 6,000 hourly workers will either lose their jobs or be reassigned to other plants.
The company has found new jobs for many of the workers at soon-to-close auto plants. Last week, GM said it would delay the closure of its Hamtramck, Michigan, plant until January 2020. It was scheduled to close in June.
Relocated workers will be given opportunities to work in Texas, Ohio, Michigan, Kentucky, Tennessee and Indiana. Workers at the Baltimore and Warren transmission facilities will be offered transfer opportunities closer to the shutdown of their plants, GM said.GM's new motto is "Zero Crashes, Zero Emissions, Zero Congestion," as it shifts to self-driving, electric vehicles. But the restructuring is also about making cars that people currently want. Customers are increasingly shunning sedans in favor of SUVs and hatchbacks.
The company said the restructuring would make it more efficient, saving $6 billion a year by the end of 2020. GM said its slimmed-down production plan would allow it to share technology across all of its vehicles and reduce the amount of time and workers it takes to build cars.

More stuff


https://www.cbc.ca/news/business/lab...wful-1.5033998

Labour board rules Unifor labour actions against GM were unlawful



The Ontario Labour Relations Board has ruled that members of Unifor engaged in unlawful strikes in their efforts to protest the planned closure of the General Motors assembly plant in Oshawa, Ont.

The ruling orders the union and its members including president Jerry Dias to cease and desist from engaging in, authorizing or counselling unlawful strikes.

General Motors Canada filed an application with the board seeking to stop "any further illegal activities" after several job actions by union members following the news that the Oshawa plant was closing.Unifor said in its response that it denied any violations of the law and that the cited incidents were discrete and resolved quickly.GM's allegations focused on several incidents where union members halted work or engaged in demonstrations, including on Nov. 26, when the company announced the closure, and Jan. 9, when it confirmed it would not reconsider its decision.

The ruling also covers actions by employees at auto parts suppliers Inteva and Lear, who temporarily walked off the job in separate actions protesting the GM Oshawa closure.

Last edited by Toys4RJill; 02-26-19 at 03:01 PM.
Old 02-26-19 | 04:20 PM
  #689  
mmarshall's Avatar
mmarshall
Lexus Fanatic
 
Joined: Oct 2003
Posts: 91,591
Likes: 88
From: Virginia/D.C. suburbs
Default

Originally Posted by LexsCTJill

https://www.cbc.ca/news/business/lab...wful-1.5033998

Labour board rules Unifor labour actions against GM were unlawful



The Ontario Labour Relations Board has ruled that members of Unifor engaged in unlawful strikes in their efforts to protest the planned closure of the General Motors assembly plant in Oshawa, Ont.

The ruling orders the union and its members including president Jerry Dias to cease and desist from engaging in, authorizing or counselling unlawful strikes.
Rulings like this, in practicality, mean little if anything. So they don't "strike" as such.......big deal. Everybody just calls in sick instead. And, if they do come to "work", they goof off or run the assembly line at maybe one-tenth its normal speed, or come back late from lunch. GM's going to lose this one, any way you look at it....the company still doesn't realize how outraged people are, and what a tiger they have by the tail.
Old 02-26-19 | 04:47 PM
  #690  
Toys4RJill's Avatar
Toys4RJill
Thread Starter
Lexus Fanatic
 
Joined: Nov 2011
Posts: 31,645
Likes: 73
From: ON/NY
Default

Originally Posted by mmarshall
Rulings like this, in practicality, mean little if anything. So they don't "strike" as such.......big deal. Everybody just calls in sick instead. And, if they do come to "work", they goof off or run the assembly line at maybe one-tenth its normal speed, or come back late from lunch. GM's going to lose this one, any way you look at it....the company still doesn't realize how outraged people are, and what a tiger they have by the tail.
I dunno. I think GM is winning the Oshawa argument. Not sure about the UAW situation. Add in the money aspect that OH is perhaps might be offering. It is interesting.


Quick Reply: GM closing Ontario, Detroit, and Ohio factories



All times are GMT -7. The time now is 03:07 AM.