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Updated - GM To Eliminate Some Car Models - Focus On EVs - Close Some Plants

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2014ChevroletImpala Oshawa plant.jpg

John Goreham
Contributing Writer, GM-Trucks.com
11-26-2018 

 

General Motors is expected to announce soon that the company will move to eliminate certain car models and close some plants that build the cars. This news seems to jive with our recent reporting about a workforce reduction among salaried employees. 

 

Reuters is reporting that the vehicle cuts will be significant and that some models will be eliminated. Separately, CTV News Canada is reporting that its sources say the Oshawa Plant in Canada that builds the Impala will be closing its operations. GM presently employs about 2,800 salaried and hourly union employees at this car plant. “While the union does not have complete details of the overall announcement we have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019,” Unifor, the union that represents the Oshawa plant's hourly workers, said in its statement. “Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement.”

 

In related news, Toyota is also planning to reduce the number of car models it produces. The Financial Times reported this week that Jim Lentz, North America chief executive officer, said the company was “taking a hard look at all of the segments that we’re competing in. We have got a large number of passenger cars,” he said. “You would expect that to come down over time.” These changes would mirror Ford's plan to eliminate all but a couple of car models in favor of crossovers and trucks.  
 

Update: GM has confirmed the Oshawa plant news and added to its "Unallocated" list the Lordstown, Ohio and Detroit-Hamtramck Assembly plant in Detroit. In addition, GM is not planning any products for the Baltimore Operations in White Marsh, Maryland, and the Warren Transmission Operations in Warren, Michigan. GM's announcement focuses on re-aligning future product focus on electric vehicles. The announcement includes,

- "GM is evolving its global product development workforce and processes to drive world-class levels of engineering in advanced technologies, and to improve quality and speed to market. Resources allocated to electric and autonomous vehicle programs will double in the next two years."

- "GM has recently invested in newer, highly efficient vehicle architectures, especially in trucks, crossovers and SUVs. GM now intends to prioritize future vehicle investments in its next-generation battery-electric architectures. As the current vehicle portfolio is optimized, it is expected that more than 75 percent of GM’s global sales volume will come from five vehicle architectures by early next decade."

 

 

 

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1.  This is not shocking, given that the plant is currently only producing cars, and had no product scheduled for production beyond 2019.  A part of me was hoping they would be able to allocate a new/different product for the facility, rather than taking jobs out of Canada.

2.  I feel for all the employees that will lose their jobs.  Closures like this affect more than just the number of GM employees that lose their jobs.  There are many other businesses that rely on the GM plant for a big part of their business.  Everything from parts suppliers, to machine shops, millwright companies, transportation contractors, and even nearby restaurants. 

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This was a given known the way the Liberal government likes to work in Canada. Run deficits, increase taxes wages and living cost, basically inflate the dollar as much as possible, no way to sell our oil, and offer no incentives for small or large businesses. It's practically treasonous policy that will do nothing but destroy our economy. Thanks Trudeau. 

 

You guys really don't know how well you have it in the USA under Trump, mainly because your media companies straight-up lie to you as they do in Canada. We know he is a champion and ours is a globalist shill. 

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Thanks to my fellow Canadian posters above. Hard times in Canada these days. Try looking at Alberta. Canada needs to stop relying on others to support itself. We have gotten lazy relying on the US to just automatically buy everything we have to build, grow, mine or manufacture. We need to look elsewhere in the world (other countries)and stop relying on the US. It will be hard but the good times are over I guess! 

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20 minutes ago, Likarok said:

Thanks to my fellow Canadian posters above. Hard times in Canada these days. Try looking at Alberta. Canada needs to stop relying on others to support itself. We have gotten lazy relying on the US to just automatically buy everything we have to build, grow, mine or manufacture. We need to look elsewhere in the world (other countries)and stop relying on the US. It will be hard but the good times are over I guess! 

If we had a leader that's only focus wasn't immigrants, virtue signalling, destroying the culture, and teaching kids about gayness, we would be able to work with Trump and both have great countries. But everyone in Canada watches CBC and gets brainwashed into the "Orangeman Bad" mentality. Harper would have worked very well with Trump and we would not be in this situation. Justin outright refuses to work with the USA on anything and stuff like this is the result. Next month Trudeau is signing away our sovereignty to the UN allowing constant and unrestricted illegal migration and any one who questions that will be charged with a "hate crime". Our country in doomed and people did it all for cool haircut and some weed. Now we pay the price. Yes we need to look at other markets, but what is more important is maintaining an excellent trade partnership with our brothers to the south, because logistically, that is the only way any of our exports will be profitable. Cheers man, best of luck in the coming years, we will need it. 

Edited by L86 All Terrain
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Busy news day on this.  GM's stock seems to be rising, for what that's worth.

 

Lots of models getting discontinued.  Cruze, CT6, LaCrosse, Volt, Impala, XTS. 

 

https://www.autoblog.com/2018/11/26/gm-production-cut-oshawa-chevy-impala-cadillac-xts/

 

Edited by rkj__

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7 minutes ago, L86 All Terrain said:

If we had a leader that's only focus wasn't immigrants, virtue signalling, destroying the culture, and teaching kids about gayness, we would be able to work with Trump and both have great countries. But everyone in Canada watches CBC and gets brainwashed into the "Orangeman Bad" mentality. Harper would have worked very well with Trump and we would not be in this situation. Justin outright refuses to work with the USA on anything and stuff like this is the result. Next month Trudeau is signing away our sovereignty to the UN allowing constant and unrestricted illegal migration and any one who questions that will be charged with a "hate crime". Our country in doomed and people did it all for cool haircut and some weed. Now we pay the price. Yes we need to look at other markets, but what is more important is maintaining an excellent trade partnership with our brothers to the south, because logistically, that is the only way any of our exports will be profitable. Cheers man, best of luck in the coming years, we will need it. 

You nailed it! I had to be careful and not come right out and blame out idiot left wing POS Prime Minister!

Edited by Likarok
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Just now, L86 All Terrain said:

But everyone in Canada watches CBC and gets brainwashed into the "Orangeman Bad" mentality. Harper would have worked very well with Trump and we would not be in this situation. Justin outright refuses to work with the USA on anything and stuff like this is the result.

Maybe I'm just another chump brainwashed by biassed media, but today's news seems more about GM restructuring, than international politics. 

 

Mary Barra has her focus on electrification and autonomous vehicle development.  To make investments in those areas, she is cutting costs by eliminating models that are seeing double digit % declines in sales, and closing the plants that make those vehicles, in addition to moving towards more efficient decision making, and more platform sharing. 

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Looks like the Asian and Korean autos are going to be the last ones standing in the sedan market. Times certainly are changing but GM cutting back no surprise with Ford exiting first.

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Bound to happen. GM simply can't compete in anything other than trucks and SUVs. BTW, everything you ever wanted in a car but was de-contented by GM is offered in the Asian cars for half the price and twice the warranty. In Mary we trust!

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4 hours ago, L86 All Terrain said:

This was a given known the way the Liberal government likes to work in Canada. Run deficits, increase taxes wages and living cost, basically inflate the dollar as much as possible, no way to sell our oil, and offer no incentives for small or large businesses. It's practically treasonous policy that will do nothing but destroy our economy. Thanks Trudeau. 

 

You guys really don't know how well you have it in the USA under Trump, mainly because your media companies straight-up lie to you as they do in Canada. We know he is a champion and ours is a globalist shill. 

Happy to trade in a N.Y. minute.

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2 minutes ago, bkesting said:

https://www.usatoday.com/story/money/cars/2018/11/26/gm-general-motors-plant-closures-job-cuts/2113275002/

 

 

Being discontinued are:

 

Chevrolet

Cruze

Impala

Volt

 

Buick

LaCrosse

 

Cadillac

CT6

XTS

I'll admit, the Buick and Cadillac vehicles, were so far off my radar, I did not even know what they were, without looking up a picture. The CT6 sounds like the biggest loss of the Buick / Cadillac group. 

 

I'll be expecting to see a better-than-the-Volt vehicle come out soon.  If you are going to cancel a bunch of cars, and claim to shift your focus to EVs, you better have more than one decent EV on the market soon after.

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