GM to Lay Off About 450 at Lansing Grand River

8327 Views 90 Replies 33 Participants Last post by roy219, Dec 12, 2014

Envoy4Life

Discussion Starter · Dec 9, 2014

GM to Lay Off About 450 at Lansing Grand River.
The Detroit News
By: Melissa Burden
December 8, 2014

General Motors Co. confirmed Monday it will lay off close to 450 hourly workers — about 100 more than originally announced — at its Lansing Grand River Assembly Plant as it moves to one shift early next year.

The Detroit automaker said last month it would lay off 350 workers at the plant that builds the Cadillac ATS, ATS Coupe and CTS because of lagging sales of the cars.

The company also said it would cut one of two shifts, and about 350 workers on the second shift would supplement the first shift.

GM said last month some second-shift employees would be able to move to the first shift as the line speed was increased to produce more cars on the one shift.

Employees were being notified of the additional layoffs Monday.

“We are adjusting plant production capacity to better align with market demand. Beginning in January 2015, the plant will operate on a single shift,” GM said in a statement.

“Approximately another 100 people will be impacted by the layoff. We are still working through details. Of the 350 employees that (were) already notified last month, approximately 200 of those 350 employees will transfer to (Lansing Delta Township Assembly Plant).”

The 200 workers will be eligible to transfer in January based on seniority and in accordance with the UAW contract, said GM spokeswoman Erin Davis.

The Lansing Grand River plant will begin a shutdown on Dec. 15 that’s expected to last until sometime in January.

GM would not comment specifically on the plant shutdown.

Full article available at link.

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Serpens

· #2 · Dec 9, 2014

I wonder why they used such an old picture.

Reactions: 4

ClassyEldo

· #3 · Dec 9, 2014

This is unfortunate. In my opinion, the current Cadillacs have lost an intrinsic dose of "Cadillac DNA," and along with toning down the styling, this has caused the motoring public to choose other products (the '15 passenger cars are simply bland). My "quick-fix" suggestion, to boost interest in the models, would be to produce a few limited editions, with unique color offerings and equipment and plush details (e.g. suede-like headliners, plush floor mats, special logos or badging on sail panels or elsewhere, unique wheels and grills, possibly chrome door mirror coverings--as Jaguar featured, etc.) Then I would rush to get the designs upgraded for MCE's as quickly as possible. I would also push for a CTS Coupe (with enhanced styling) and another Convertible model (with rear seating--as in E350 and 850Ci), and another wagon (either ATS or CTS). Speed up getting the needed SUV's, too.

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paul8488

· #4 · Dec 9, 2014

Serpens said:
I wonder why they used such an old picture.

I think I see a Cimarron front clip in the background...

Reactions: 1

dslay04

· #5 · Dec 9, 2014

Let's see what happens with the refreshes

sfbreh

· #6 · Dec 9, 2014

Dear anyone who has a problem with this: Buy a Cadillac.

Reactions: 2

1.21 giggawatts

· #7 · Dec 9, 2014

crummy thing to do right before christmas.

32016

· #8 · Dec 9, 2014

Whatever luster and good PR Cadillac had begun to gain is pretty much trashed now. There were some good reviews for ATS and CTS which created a brief positive buzz for Cadillac but headlines referencing layoffs, slow sales, and high inventories have offset all that and reinstated the loser image.

It'll be interesting to see how long Johan and the upmarket flirtation lasts. I think CT6 will be a make or break product for Cadillac. If it also fails like ATS and CTS have, I would expect the Board of Directors to put Cadillac's management and future under review.

megeebee

· #9 · Dec 9, 2014

1.21 giggawatts said:
crummy thing to do right before christmas.

Oh, they'll be paid I think.

Ci2Eye said:
Whatever luster and good PR Cadillac had begun to gain is pretty much trashed now. There were some good reviews for ATS and CTS which created a brief positive buzz for Cadillac but headlines referencing layoffs, slow sales, and high inventories have offset all that and reinstated the loser image.

Come off it!

It would be FAR worse for Cadillac to cut prices or subvent a bunch of leases like they used to.

It'll be interesting to see how long Johan and the upmarket flirtation lasts. I think CT6 will be a make or break product for Cadillac. If it also fails like ATS and CTS have, I would expect the Board of Directors to put Cadillac's management and future under review.

The ATS and CTS have NOT FAILED. They don't out-sell their competition, and Cadillac obviously over estimated demand, but it's simply not fair or even correct to call them failures. The CTS is fetching almost $8-10K more per unit than its predecessor. Combined, the ATS and CTS out sell the Gen 2 CTS.

Both the ATS and CTS represent new entrants in markets they've never played in before. I think they're doing fine for new-comers.

Yes, I'd love it if they were both #1 sales.

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sfbreh

· #10 · Dec 9, 2014

megeebee said:
The ATS and CTS have NOT FAILED. They don't out-sell their competition, and Cadillac obviously over estimated demand, but it's simply not fair or even correct to call them failures. The CTS is fetching almost $8-10K more per unit than its predecessor. Combined, the ATS and CTS out sell the Gen 2 CTS.

Both the ATS and CTS represent new entrants in markets they've never played in before. I think they're doing fine for new-comers.

Yes, I'd love it if they were both #1 sales.

This.

The definitions of success and failure are not so clearly delineated for as someone with little insight to be able to declare ATS and CTS abject failures.

Reactions: 1

paul8488

· #11 · Dec 9, 2014

1.21 giggawatts said:
crummy thing to do right before christmas.

Getting laid off is never good timing, but GM isn't Santa. If these people wanted a guaranteed job for life they should have gone to one of those employers that guarantees jobs for life...

Yeah, it's tough, but GM (or any other manufacturer) can't keep people working to be nice. GM is making a smart decision to match production to demand.

Reactions: 3

paul8488

· #12 · Dec 9, 2014

megeebee said:
The ATS and CTS have NOT FAILED. They don't out-sell their competition, and Cadillac obviously over estimated demand, but it's simply not fair or even correct to call them failures. The CTS is fetching almost $8-10K more per unit than its predecessor. Combined, the ATS and CTS out sell the Gen 2 CTS.

Yes, true, and cutting production to avoid a glut of cars will have a positive effect on the brand's image and position; to me THIS kind of restraint and planning is at the heart of getting Cadillac to where GM wants them to be.

usayjim2

· #13 · Dec 9, 2014

Check Consumer Affairs for lots of complaints/horror stories about Cadillac Some didn't have fixes for problems and it took a couple of years for the newer models to make the necessary changes . Others had problem parts unavailable , even though within the 10 year manufacture period . I much prefer Buick's approach , limiting their assortment of models , refining them yearly , building up a solid reputation for customer satisfaction . The only GM division to be in the latest poll of the top 10 for Customer Satisfaction . When the Envision hits the market next year , it will have three superb products in the high growth crossover market segment . Then watch sales really take off for this division ! Sales percent increases for November are excellent , compare them to Cadillac and get enlightened ! How Cadillac gets the mandate and the BUDGET to throw a bunch more into the mix over the next couple of years , I believe there will be eleven in total ??... is simply beyond me . Cadillac is like my former girl friend used to be , by the time she got ready for the party , people were going home ! Simply put , Cadillac must be accountable to the company every year , not several years in the future . That's right , every year , not like an elected politician who continues to blame for several years , the previous administration for his failures ! This is totally not acceptable in one of the highest costing , most competitive businesses in the world .

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ksr

· #14 · Dec 9, 2014

sfbreh said:
This.

The definitions of success and failure are not so clearly delineated for as someone with little insight to be able to declare ATS and CTS abject failures.

Failures, no. On the contrary, I'd say that CTS has been successful.

Not failure, but I think that "disappointment" does apply in the case of the ATS.

Reactions: 1

patrickbec

· #15 · Dec 9, 2014

sfbreh said:
This.

The definitions of success and failure are not so clearly delineated for as someone with little insight to be able to declare ATS and CTS abject failures.

The people on this site are almost exclusively fixated on volume and market share. They were mostly around when the old GM focused exclusively on that too, and I suppose they internalized that flawed approach. They probably walk around with "29" badges. The fact though is that new GM is not a volume machine, cranking out every unit it can to cover its fixed costs. It now has the luxury of focusing on building it's brands which is the long term way to make outsized margins. Its s cliche, but some people on here need a pardigm shift on how they think about GM and Cadillac in particular.

Reactions: 3

MechEng

· #16 · Dec 9, 2014

Hopefully these layoffs are only temporary. At very least they should be all called back when Camaro production starts at the plant.

Reactions: 2

posaune

· #17 · Dec 9, 2014

megeebee said:
The ATS and CTS have NOT FAILED. They don't out-sell their competition, and Cadillac obviously over estimated demand, but it's simply not fair or even correct to call them failures. The CTS is fetching almost $8-10K more per unit than its predecessor. Combined, the ATS and CTS out sell the Gen 2 CTS.

Both the ATS and CTS represent new entrants in markets they've never played in before. I think they're doing fine for new-comers.

Yes, I'd love it if they were both #1 sales.

I wouldn't call them failures either (yet) but like many other great GM products, there is a pricing and perception problem. Being the newcomer in a segment, you have to offer more than the established. That is especially true with the market the ATS and CTS are in. Bringing a car that is superior than the comparable BMW/Audi/MB is not enough.

32016

· #18 · Dec 9, 2014

megeebee said:
Oh, they'll be paid I think.

Come off it!

It would be FAR worse for Cadillac to cut prices or subvent a bunch of leases like they used to.

The ATS and CTS have NOT FAILED. They don't out-sell their competition, and Cadillac obviously over estimated demand, but it's simply not fair or even correct to call them failures. The CTS is fetching almost $8-10K more per unit than its predecessor. Combined, the ATS and CTS out sell the Gen 2 CTS.

Both the ATS and CTS represent new entrants in markets they've never played in before. I think they're doing fine for new-comers.

Yes, I'd love it if they were both #1 sales.

I think GM thought if they could build BMW beating products, they could turn Cadillac around. They traveled to Germany and developed the cars in BMWs backyard and it appears they met all the requirements and built fully competitive cars but for many reasons, they have failed to gain traction in the marketplace and are selling at much lower volumes than anticipated. Weak sales necessitates elimination of a shift and a loss of jobs for 450 people.

That narrative definitely wouldn't be defined as marketplace success but if failure to meet goals and expectations is too strong a word, we'll say they didn't succeed. No matter what word is used, I think CT6 will make or break the plan. If it is successful and sells well and creates a halo that helps to move the ATS and CTS off of dealers lots, the American BMW marketing strategy continues. If not, I think they take a hard look at where they are going and whether they need to change course.

Personally, I'd like to see Cadillac be more original and more true to their own heritage. A Cadillac was never, ever a hard-charging autobahn-bred sports sedan. If they want to imitate BMW AG's products, a better match would be their Rolls Royce brand instead of the namesake brand.

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ih8slowcars

· #19 · Dec 9, 2014

Cadillac has been losing volume and market share to MB, BMW and Lexus for the past 2 years. They don't have the brand equity, image and vehicles to be competitive.

Cadillac only appeals to two classes of consumers:
- 70+ years old retirees
- pimps

Any successful, affluent young-to-middle-aged professional won't even put a Cadillac on his short list when looking for a vehicle. People who can afford premium cars are looking for elegance and refinement, not a ghetto pimp-mobile.

Cadillac has been on life-support for several years. Cadillac can't even win on its own home turf, and its perspective for an international success are basically non-existent.

posaune

· #20 · Dec 9, 2014

ih8slowcars said:
Cadillac only appeals to two classes of consumers:
- 70+ years old retirees
- pimps

The 80's called, they want their stereotype back.

Reactions: 5

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