GM Lays Off 3,600 Amid Grim Outlook

[nsap]

Crisis Continues: GM Lays Off 3,600 Amid Grim Outlook
The day of bad news continues with the American auto industry...
www.gminsidenews.com
November 7, 2008



CAMI Plant (Equinox/Torrent Plant) Eliminates Entire Shift--470 jobs gone

Oshawa Loses 500 Jobs; Impala Production Cut 20%

Lordstown Assembly (Cobalt/G5) Laying Off 1,000; Keeping Three Shifts

1,600 Positions Removed at Hamtramck, Pontiac, Wilmington Assembly Plants

Layoff Breakdown:

• CAMI Assembly (Ingresoll, Ontario): 470 [Builds Chevrolet Equinox, Pontiac Torrent, Suzuki XL7]
• Oshawa Assembly (Oshawa, Ontario): 500 (temporary) [Builds: Chevrolet Impala, Buick LaCrosse]
• Lordstown Assembly (Lordstown, OH): 1,000-1,100 [Builds: Chevrolet Cobalt, Pontiac G5]
• Detroit-Hamtramck Assembly (Detroit, MI): 500 [Builds: Cadillac DTS, Buick Lucerne]
• Pontiac Truck Assembly (Pontiac, MI): 700 [Builds: Chevrolet Silverado, GMC Sierra, metal fabrication]
• Wilmington Assembly (Wilmington, DE): 400 [Builds: Pontiac Solstice, Saturn Sky, Opel GT]

TOTAL: ~3,570

[Koasterking]

Definitely not good. I hate to say it, but maybe GM should consider selling some of it's brands.

[montrealvue]

Originally Posted by Koasterking

Definitely not good. I hate to say it, but maybe GM should consider selling some of it's brands.

That might not be an option. As many reposts have said, without a bailout they will be bankrupt within this quarter.

[nsap]

This is possibly the worst aspect of this whole mess; people losing their jobs.

[steverino]

Originally Posted by nsap

This is possibly the worst aspect of this whole mess; people loosing their jobs.

Yes, and sadly those people are GM customers (assuming most employees purchase their company's products). It's like a vicious circle

[hymeballs]

were also re -rating the line at Orion Assembly losing 600 plus jobs but keeping 3 shifts.....

[FenwickHockey65]

*facepalm*

The **** is really hitting the fan today...

[t-rex]

For the love of all that is holy, people....

Please stop using loose in place of lose!

Sorry, it's a pet peeve of mine!

[hotrod1949]

The total this time at CAMI will be near 600, after 535 were let go in April. Hopefully will be rotating layoffs, and full staffing will be required in April for next gen (if there is an April for CAMI). CAMI suppliers are starting to really hurt as well, and I expect to read of more layoffs in the parts industries next week as well.

[RedVee8]

Originally Posted by Koasterking

Definitely not good. I hate to say it, but maybe GM should consider selling some of it's brands.

Not trying to be smart, but to who?
Every car manufacturer seems to be hurting. They are more likely to end up in the cupboard of history.

[Joe in T.O.]

I am surprised 1000 layoffs at Cobalt plant. I thought they were selling. As far as the Cami plant goes, maybe they should go back to building the 3 cylinder Geo Metro and Suzuki swift. Canadian car sales are actually up but unfortunately only at Japanese companies. People still think Japanese cars are better which is so untrue.

[SierraGS]

Originally Posted by steverino

Yes, and sadly those people are GM customers (assuming most employees purchase their company's products). It's like a vicious circle

Someone who understands how an economy works!!!!!!!!

Thank You for noticing.

Funny how most posts treat the factory workers like faceless people who only come to work then go to some undisclosed area where they have no interaction with the economy.

I am not a factory worker or a unionized one, but I do know that factory workers do buy things, sometimes even the things they make which all drives the economy to make more things - it's complicated.

[Smaart Aas Saabr]

Originally Posted by steverino

Yes, and sadly those people are GM customers (assuming most employees purchase their company's products). It's like a vicious circle

You know the old saying, "What's good for GM is good for America", even today GM is not as important, but still their employees and those of GM's suppliers make a huge chunk of the US economy.

That said the employees buying their own stuff, isn't so important as typically they get those products at heavy discounts. But when they buy other stuff at the real price, things like houses, boats, TV sets... for GM guys.

[Josenez11]

Originally Posted by Joe in T.O.

I am surprised 1000 layoffs at Cobalt plant. I thought they were selling. As far as the Cami plant goes, maybe they should go back to building the 3 cylinder Geo Metro and Suzuki swift. Canadian car sales are actually up but unfortunately only at Japanese companies. People still think Japanese cars are better which is so untrue.

They were selling, like three months ago. Only sold a little over 6,000 units in October. That would be the total number of cars they produce there in roughly one five day work week.

[MadTruckMan]

It seems pretty obvious to me. First, no more GMAC leases. And then GMAC basically stops loaning money for cars unless you walk into a dealership with a fist full of cash. And I would be willing to bet that rates with other banks probably isn't really competitive. This creates the lack of sales that you now see. 20% loss, 30% loss, could be attributed to economy in general, but 50%?? That is totally from the lack of credit from GMAC and other banks. If you take a look at Toyota, company without the legacy costs of a GM or Ford, they are still turning a respectable profit. Not as much as the market would like, but still turning a profit even in this bad market. If you get GM to 2010 when the VEBA kicks in and GM can shed the retiree costs, GM begins to really make some money then. I would venture to guess that 1billion a month in profits would not be out of the question. Yes, paying back the loans would hurt that some, but you would not kill an industry that has helped this country through some of its darkest hours. But here is the kicker: What if GM doesn't have the 35billion to to pay off the VEBA?? Ummmm....uh oh! I hope that this is being worked into GM's numbers as we are going forward. Maybe this is where the UAW needs to step up and do their part to make this all work out. I hope it does...my livelyhood depends on it!