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Lansing Grand River Closes


Bruce Nunnally

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General Motors has announced that it will shutter operations at Lansing’s Delta Township plant and Grand River facility. Delta makes the Buick Enclave, GMC Acadia, and Saturn Outlook while Grand River makes Cadillac STS and CTS.

The move is part of GM’s move to cut spending and production by about 30 percent in order to stay afloat while waiting on word about federal loans to assist in operations and reorganization.

Lansing City Council member Carol Wood said in a phone interview with Michigan Messenger the plant shut downs in Lansing would have a “huge impact” on the economy locally.

[article]

Bruce

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The UAW has agreed to a number of concessions. The issue was a matter of whether they agreed by March of 2009 or to changes in 2011 when I guess their current contract is up.

If the new Administration fixes health care, oddly enough that might change the dynamics of the auto industry as well. A lot of GM's labor cost delta is the health care cost for retired workers.

Porsche made 95K cars or so in 2007 an made a profit of around $27K per car, the highest in the industry

GM made 9,370,000 vehicles in 2007 and lost $38,730,000,000 (-$4,055 per car)

Toyota made 9,366,418 vehicles in 2007 and made $17,146,000,000 (+$1,874 per car)

GM sells the most cars in the world. GM is losing money.

In recent years, GM has made a number of changes that will, given time, make them profitable again. Car model changes, factory changes, labor concessions.

The problem now is whether they have the time.

The bright side is that the current crisis may bring on change even faster, and accelerate GM's return to profitability.

Bruce

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I agree that health care is the nemesis of most companies troubles. It sucks that when you retire, and you think that you have all the bases covered, ie: healthcare coverage etc, that something like this happens. I don't know what they're going to do with it, and I certainly wouldnt rely on the Messiah to take care of it, hell, hes got trillions in projects that he promised to undertake, and take care of the whole United States!. Health care is an issue all around the country, and being in a union, this is one of the issues we've been fighting for, and given concessions for, for years. I don't know what UAW is going to do, but they have to do something, I guess.. Why don't they stop giving money to useless bums that don't work, collect money, and buy beer and lottery tickets everyday? It seems thats the way to go nowadays, don't pay your bills, collect SSI, drink beer and buy lottery tickets, your all set! Instead, work hard for 30 years, collect a pension, and then have the rug pulled out, and your back to where you started?

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I'm missing the point here.

I fail to see the connection between closing one more assembly facility (a responsible management decision given the cirmcumstances) and how hired labor chooses to spent their disposable income.

Jim

Drive your car.

Use your cell phone.

CHOOSE ONE !

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The 2 Lansing plants are NOT closing. They are being idled for 40 days.

Most GM plants will not be building any vehicles during Jan '09. Also, xmas shut down starts on 23rd of December.

*Goverment mandated sub prime mortages =wallstreet bailout =lack of consumer confidence =drop in cars sales to 25 year low =Big 3 request for goverment loans to ride out downturn.

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