GM Lays Off 3,600 Amid Grim Outlook

[Clownzilla]

Originally Posted by mike's 01ws6

Some of theses cars also belong to ouside contractors, vendors, etc. Do you think the people that are making $14 an hour are not going to drive whatever is cheapest?

It doesn't matter if it's a 20 year old junker! If you work at GM or do most of your contracting work at GM then you need to drive a GM. The mentality that you bring to the table is the same mentality that is helping to destroy GM. ALWAYS support your employer by buying their products over the competition!

[Kennyboy]

Sad reality. California is already the import capital of the planet, it's a matter of time before every place in America is dominated by imports.

[PAULSTS1]

Originally Posted by Koasterking

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

Unfortunately no one is buying or ramping up auto production, today even the omnipotent Toyota is crying about lost business. This morning I was looking at U-Tube videos about highly popular Brands that aren’t around anymore. This gives me the feeling that come 100-120 days, GM is a goner.

Look at some of the Brands that were, but now are not:

Cord, Packard, Desoto, Plymouth, American Motors (made up of Nash, Rambler, Wileys), Duesenberg, Hudson, Oldsmobile, Studebaker, Tucker, Avanti, Stutz, etc. These are some of the companies that are now automotive carnage.

The one glimer of hope is FORD, it has a year of operating capital and has eliminated a lot of the cash burn, because they have a working proactive management team. Ford did not count on a bailout, because management realized that you have to be able to re-pay in order to borrow. Also as the sole remaining survivor of the USA auto industry, they will be helped when they ask for it. GM has become the Lehman Brothers of the Auto Industry, because of inept and arrogant management.

.

[crm2019]

Originally Posted by CheetahDC

I thought the Cobalt/G5 was selling well? Does anyone have sales figures for that model over the past few months?

yeah, check out this link.

http://media.gm.com/servlet/GatewayS...74&docid=50002

if only gm had a brain.....

[CheetahDC]

Ow, ow ow ow. I have a lot of love for the Cobalt/G5, they're built not far from me in my own state and they're in my favorite segment and they've got everything from economy to FAST. This hurts.

Just WHY is the Cobalt/G5 selling less than cars like the Malibu and Impala? I'm not quite sure I understand. Are Americans just not into compacts as everyone says we are becoming?

[Jim Altemus]

Originally Posted by tkrelston

Sadly, GMs own employees are less and less GM buyers. A drive past the Tech Center will clearly indicate that more and more are buying imports of the Audi and Prius kind. GM should take that sort of thing into consideration when doing layoffs and hiring; legal or not!

Right because this is the problem, not that GM isn't making cars that people want and hasn't been for a while, but that some employees are being treasonous. The fact that some employees would prefer to pay retail (or a premium in the case of the Prius) than take the GM employee discount should be a HUGE reality check for GM.

Instead of laying these people off for their choice of automobile or making them park in the far back corner of the lot (like they did at the NDH plant we used to have here in Bristol) why not ask those non-GM buyers why they chose the car they did and learn from it. The first word that comes to mind with Audi is class leading interior design and materials while the Prius, like it or not, is about fuel efficiency.

I won't get into a bunch of Monday morning quarterbacking here. I think that if we're honest with ourselves we can see what got GM to where it is today. Like it or not, we're at the point where GM needs to trim brands and dealers. I know this sucks, but at some point they need to accept the situation and move on... while they still can... if they still can.

[Dukeboy01]

The Lexington Herald- Leader reported this morning that 110 would be laid off from the Corvette Assembly Plant in Bowling Green. Haven't seen that announcement in any of the estimates from Friday.

Is there a link to where someone from GMI is keeping a running total?

Story at the link below:
http://www.kentucky.com/181/story/585646.html

[5.3Avalanche]

I'm a die hard GM fan and I love their vehicles. Trucks, cars, everything. If they go under, I will saddly miss them. Passionate cars like the Corvette, the GXP Pontiacs, offroad marvels from Hummer all the way to their hardworking trucks. I've driven and love them all. I sure hope they don't go so that I can keep buying their excellent vehicles in the future. God speed GM.

[montrealvue]

Originally Posted by CheetahDC

Just WHY is the Cobalt/G5 selling less than cars like the Malibu and Impala? I'm not quite sure I understand. Are Americans just not into compacts as everyone says we are becoming?

Americans are warming up to compacts but the competition has a leg up on them. The Honda Civic and Toyota Corolla are great vehicles that have become the benchmark in their segment. While GM left the Cavalier and Sunfire in this segment for a decade without changes others stepped up and put out fantastic vehicles. By the time GM put the Cobalt in showrooms it was too late for anyone to notice. Though it may be a decent vehicle, it is about 5 years behind what the competition has out there. Timing is everything, GM still needs to grasp that concept.

[Mozeby]

Originally Posted by Smaart Aas Saabr

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.

For all the Import loving idiots out there, I really hope they learn a lesson from this whole mess. You can't keep supporting Japan and Germany and then expect there to be no consequences here at home. Yeah some of them build cars here (not so much the Germans) but in the end, the profits and money all leave for Asia and Europe. Suppliers and workers (white collar and blue) lose out in North America. Maybe when we're all standing around a burning trash can to keep warm, we can use a Toyota to keep the fire burning. KEY an Import today and smile.

[lio45]

Originally Posted by Bravada

Even if those 3,600 were really GM customers, not all would buy new cars every month, and not all buy new cars at all - if they can afford new cars, I guess those are rather of the discounted Cobalt kind rather than the high-profit loaded Tahoes. So it isn't that much pain for GM, who needs to sell MILLIONS anyway.

EXACTLY. The ROI on paying 3,600 potential customers a full salary is totally ludicrous.

These 3,600 people cost WAAAAAY more to GM than they bring. Rough numbers:

If they're useless, keeping them on the payroll is what, $100,000 each per year?

To meet the threshold of payback, each one of them would have to buy 10 new Tahoes (assuming ~$10k profit per Tahoe) per year. Above that, it makes business sense to keep them employed (but you have to MAKE SURE that each buys their 10 yearly new Tahoes, otherwise you're below zero!).

Below that, it's financially advantageous to cut them.

[Jim Altemus]

Originally Posted by Mozeby

For all the Import loving idiots out there, I really hope they learn a lesson from this whole mess. You can't keep supporting Japan and Germany and then expect there to be no consequences here at home. Yeah some of them build cars here (not so much the Germans) but in the end, the profits and money all leave for Asia and Europe. Suppliers and workers (white collar and blue) lose out in North America. Maybe when we're all standing around a burning trash can to keep warm, we can use a Toyota to keep the fire burning. KEY an Import today and smile.

Again, this misses the point and is indicative of what has GM in its dire straits. For DECADES the Big 3 built sub-par cars and expected people to buy them because you're supposed to buy American. Meanwhile import manufacturers without the legacy costs the B3 were able to invest in their product and basically handed them their collective butts. In hindsight the SUV fad was a blip on the radar. I mean, what does it take for some people to realize that this business model went out the window a long time ago?

I'm happy that GM is finally building offering class cars like the CTS, the Malibu and the Corvette in the U.S. Unfortunately those are only three out of dozens of models sold through six (?) obstensively competing divisions. You also have decades of bad cars and bad experiences for customers to overcome. I think GM can do it. I just hope they have the time.

(And I know my bad GM cars. God help me I still love the Vega)

As to your comment about keying an import, that just proves what a troll you are, in one post or less.

[hunchman]

Originally Posted by lio45

EXACTLY. The ROI on paying 3,600 potential customers a full salary is totally ludicrous.

These 3,600 people cost WAAAAAY more to GM than they bring. Rough numbers:

If they're useless, keeping them on the payroll is what, $100,000 each per year?

To meet the threshold of payback, each one of them would have to buy 10 new Tahoes (assuming ~$10k profit per Tahoe) per year. Above that, it makes business sense to keep them employed (but you have to MAKE SURE that each buys their 10 yearly new Tahoes, otherwise you're below zero!).

Below that, it's financially advantageous to cut them.

You my friend missed the point. I'm not even gonna begin to explain it to you. I really hope there isn't alot more like you out there or we're all doomed.

[Bravada]

in the end, the profits and money all leave for Asia and Europe

The profits - perhaps. Although if an Asian automaker is building a new plant in the US they are financing it out of.... you've guessed it, said profits! Money - not at all. Most of the price of a vehicle built locally stays "in the economy". The people that assemble, transport, market, finance and sell the cars have to be paid, as well as the people who manage them, as well as many contractors to the plant (even if ALL the components would be sourced from outside of North America, you still have to buy power, water, meals etc.)

Not to say all this money doesn't get spent in Wal-Mart on Chinese goods...

[lio45]

Originally Posted by hunchman

You my friend missed the point. I'm not even gonna begin to explain it to you. I really hope there isn't alot more like you out there or we're all doomed.

Please explain.

Remember we're looking at this from GM's point of view -- GM as a company that needs to, first and foremost, survive if they want to be able to keep putting bread on workers' family tables.

How is it better to keep these 3,600 nice guys and gals on the payroll? I'm all ears.