GM extends holiday shutdown, may cut production

[mgescuro]

GM extends holiday shutdown, may cut production

http://www.usatoday.com/money/autos/...n_N.htm?csp=34

General Motors (GM) will extend its holiday shutdown or make other production cuts at up to 10 factories as it deals with a continued U.S. auto sales slump and fights to stay solvent.

The cash-strapped automaker told workers about the cuts Friday morning, according to local union officials.

Dave Green, president of a United Auto Workers local in Lordstown, Ohio, said workers were told that the normal holiday shutdown will be extended until Jan. 20 at the sprawling factory complex, which stamps parts for and assembles the Chevrolet Cobalt and Pontiac G5 small cars.

The last scheduled workday will be Dec. 23, although production will start to wind down before that, he said.

Details of the other cuts were not available. GM spokesman Chris Lee would not comment on the announcements.

Green said after Jan. 20, the Lordstown complex will keep operating around the clock, but assembly line speed will be reduced from the current 62 vehicles per hour to 46.5 vehicles. The Lordstown complex, about 50 miles southeast of Cleveland, employs about 4,200 production workers.

Earlier this year the company added workers to the plant as demand for its small, fuel-efficient cars increased. Since then, the bottom has fallen out of sales industrywide, and GM later announced it would lay off up to 1,100 of the plant's workers starting Jan. 20.

Green said he's optimistic GM will resume production as scheduled Jan. 20, although at the slower assembly line speed.

More at Link

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Not unexpected. I had expected more though.

[cmoore]

This may seem like a niave question and I am sure there are contractual reasons against this, but why does GM not just shut down the majority of its production for those vehicles that have high inventory levels?

There must be some cost savings to be realized

[K-1]

Originally Posted by cmoore

This may seem like a niave question and I am sure there are contractual reasons against this, but why does GM not just shut down the majority of its production for those vehicles that have high inventory levels?

There must be some cost savings to be realized

Not with the jobs bank. Not only are you losing revenue on lost production, you still have to pay the workers too.

[big3worker]

gm could shut down north american operations for the month of december and the jobs bank would have no impact, jobs bank only comes into play on indefinet layoffs not production related temporary shutdowns.
If they was to shut down for the month they would not have to pay holiday pay ( i think ) and all they would be on the hook for would be sub pay to bring unemployment pay up to 95% they would save alot on utilities for the month and this would get them to the end of january when the next leadership in washington takes over .

[texassierradude]

I'm sure a total shutdown through Jan. 20 would save some money, even paying the 95% to the union members. Not to mention a good way to decrease the inventory. Restart production Jan. 20 at 12 noon EST as a way of thumbing GM's nose at W, Shelby, Kyl, etc.

[big3worker]

i like that janury 20 12 noon idea !!!!

[SierraGS]

Effective December 1, 2008 - All three companies should shutdown production companywide in all facilities and send all salary workers home until Jan 20th. The employees can use vacation time if they have it or take temporary layoff with the UAW giving a 60 day waiver on Jobs Banks provisions.

Maybe that is what it will take for the public to understand the impact the Big 3 have on the economy when all of the suppliers layoff workers in reaction to GM delaying/stopping all orders and initial unemployment claims jump through the roof.

The "Big 3" have to do something along those lines anyway to save money and reduce inventories.

[1999 White C5 Coupe]

Originally Posted by SierraGS

Effective December 1, 2008 - All three companies should shutdown production companywide in all facilities and send all salary workers home until Jan 20th. The employees can use vacation time if they have it or take temporary layoff with the UAW giving a 60 day waiver on Jobs Banks provisions.

Maybe that is what it will take for the public to understand the impact the Big 3 have on the economy when all of the suppliers layoff workers in reaction to GM delaying/stopping all orders and initial unemployment claims jump through the roof.

The "Big 3" have to do something along those lines anyway to save money and reduce inventories.

In support of your idea - will you be taking unpaid leave (or vacation time) from your job from December 1, 2008 - January 20, 2009?

[SierraGS]

Originally Posted by 1999 White C5 Coupe

In support of your idea - will you be taking unpaid leave (or vacation time) from your job from December 1, 2008 - January 20, 2009?

My company does not have the problem the Big 3 face and I did have to make a similar sacrifice a couple of years ago when we did have problems - now we are in good shape because we understood our problem and DID something to get out of it ourselves and we did not need taxpayers dollars to do it.

Sounds like you refuse to do anything for yourself.

The Big 3 have to face a very real fact - THEY ARE IN BIG TROUBLE and they WILL HAVE TO MAKE BIG SACRIFICES to get out of them.

Better to take a little bitter medicine for a short time then face worse later.

[1999 White C5 Coupe]

Originally Posted by SierraGS

My company does not have the problem the Big 3 face and I did have to make a similar sacrifice a couple of years ago when we did have problems - now we are in good shape because we understood our problem and DID something to get out of it ourselves and we did not need taxpayers dollars to do it.

Sounds like you refuse to do anything for yourself.

The Big 3 have to face a very real fact - THEY ARE IN BIG TROUBLE and they WILL HAVE TO MAKE BIG SACRIFICES to get out of them.

Better to take a little bitter medicine for a short time then face worse later.

I currently own two GM cars - a 1999 Corvette coupe (purchased new) and a 2008 Impala LTZ (purchased new). I have owned GM cars for years.

By being a long-time, loyal GM customer, I have done more than many on this forum. I agree that GM is in big trouble. I am not associated with GM or any of its suppliers.

At least I have put my money where my mouth is when I buy new cars.

[jarsworldcom]

Originally Posted by big3worker

gm could shut down north american operations for the month of december and the jobs bank would have no impact, jobs bank only comes into play on indefinet layoffs not production related temporary shutdowns.
If they was to shut down for the month they would not have to pay holiday pay ( i think ) and all they would be on the hook for would be sub pay to bring unemployment pay up to 95% they would save alot on utilities for the month and this would get them to the end of january when the next leadership in washington takes over .

Sadly I have 5 vacation days left at GM as I have no were to go.

[TriShield]

GM is going to be bankrupt by then.

[goodies]

Originally Posted by SierraGS

My company does not have the problem the Big 3 face and I did have to make a similar sacrifice a couple of years ago when we did have problems - now we are in good shape because we understood our problem and DID something to get out of it ourselves and we did not need taxpayers dollars to do it.

Sounds like you refuse to do anything for yourself.

The Big 3 have to face a very real fact - THEY ARE IN BIG TROUBLE and they WILL HAVE TO MAKE BIG SACRIFICES to get out of them.

Better to take a little bitter medicine for a short time then face worse later.

You obviously don't understand what is being done by GM/UAW to make a statement like 'refuse to do anything'. Lots has been done. GM was on the path to profitability, but did not anticipate gas price spike or now the credit crisis where auto sales are down 30%. GM has a high fixed cost base, and had taken action to gradually get profitable as they brought in new workers, and transitioned existing workers to retirement and transfer health care to VEBA. Now changes will have to be made to accelerate cost savings, or will have to declare BK.

[GMJIM69]

I hate to break to you sad sacks out there but the Arlington TX SUV plant will be blowing and going WITH APPROVED COMPANY OVERTIME in December. This is America where LOW GAS PRICES = HIGH SUV SALES. This came straight from the Arlington TX. GM Plant today so it must be so.

[jasaero]

Originally Posted by GMJIM69

I hate to break to you sad sacks out there but the Arlington TX SUV plant will be blowing and going WITH APPROVED COMPANY OVERTIME in December. This is America where LOW GAS PRICES = HIGH SUV SALES. This came straight from the Arlington TX. GM Plant today so it must be so.

Yep, but that is also because they have closed or are close to closing about ALL other GMT900 SUV plants. Basically Arlington is the last man standing and has to pick up the slack of the plants that closed.

If SUV sales happened to go back to normal as we come out of this downturn with cheaper gas than ever, GM is going to have cost structure problems again if they have started to retool some of the shuttered SUV and truck plants and have to do a 180 to get SUV's and trucks going in them again. It will screw with Toyota's margins also though as I am sure they will encounter similar costs trying to adjust. Companies like Honda and Hyundai are the least affected as they don't really even make trucks or SUV's much other than ones based on cars that come down lines next to the cars.