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General Motors Begins Mass Layoffs TODAY

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Zane Merva

Executive Editor & Publisher - GM-Trucks.com

February 4th, 2019

 

The Detroit Free Press is reporting that GM will layoff as many as 4,000 people white-collar positions today. Dubbed as "Black Monday" by an investment strategist, the cuts that may start today are a result of a low take rate on an employee offered buy-out announced in October

 

 

 

I can personally attest to the talent lost at the company in the last few years. Most of the people that I had the pleasure of communicating with for the past twenty years at General Motors no longer work for the company. Most received early retirement buyouts and will move on to other roles at other companies. Those cut today won't be so lucky to get that buyout. 

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And all because Truck and SUV's are dominating right now due to lower fuel prices. 

The sedan is dying out.

 

 

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1 hour ago, Sierra Dan said:

And all because Truck and SUV's are dominating right now due to lower fuel prices. 

The sedan is dying out.

 

 Not all true,  The new Buicks are all made in China.. Chevys, some are Mexico and elsewhere. GM will have the products, just Not deal with Unions anymore.

 

Edited by Formulabruce
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legacy cost of white collar workers made them go bankrupt. It seems to still be an issue today. They should of took the buyout offer in my opinion. 

Edited by JimmyJ_123
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A rear drive Impala I’m buying. I’ve had 13 of them. That would be instead of another Genesis or Stinger. I’m buying rear drive cars just not GMs.


Sent from my iPhone using Tapatalk

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2 hours ago, Formulabruce said:

 

GM’s Mexico plants last year produced about 687,000 pickup trucks and SUVs along with 119,000 cars. The automaker’s U.S. plants assembled 1.5 million pickups and SUVs and about 520,000 cars. 
https://www.commercialappeal.com/story/money/cars/2018/11/27/gm-plant-closing-spring-hill-tennessee-mexico-uaw/2118176002/

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I constantly hear of these huge lay offs from all of the American car companies and it really boils down to leadership mismanaging the company.  As a business owner myself, I know how it works to build a product and take it to market on any scale, and if these guys cannot handle keeping up with the trends and times, they have no excuses. 

 

There is nothing stopping all of these laid off staff from creating their own car company, they have all been trained, geared up towards and it's more of a matter of recreating their current jobs with new backing.  I understand it can be difficult when the economy is not roaring, but right now it's hemorrhaging, to the point there is a lot of new capitol floating around may investors and business owners could be utilizing towards new start ups like a new employee owned car company. 

 

I would start out focusing on a largely neglected demographic, the younger millenials and produce simple, cheap, but reliable commuter vehicles.  When I say cheap as in under $4k, and only meant to get them through the bulk of their 20's without needing to recycling them.  Most drive vehicles in that range already since they are delegated to used vehicles only.  One would also want to add into it factory financing that is very realistic for most of them to handle, for typical situations it's too far out of their reach.

 

When these big companies had their bail out's from the government, it bothered me to no end, for there are no bail out's for small companies.  It would be fitting their lay offs create new competition, and it would be even better if none of the big operations had bail out's and were forced to either break up into smaller companies or get out of the game all together.

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17 hours ago, JimmyJ_123 said:

legacy cost of white collar workers made them go bankrupt. It seems to still be an issue today. They should of took the buyout offer in my opinion. 

No, the legacy cost of Union workers made them go bankrupt.  Today, it's about being lean and mean.  Many companies are doing this.  They'll eventually hire more white collar workers again.

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14 hours ago, saucerguy said:

When these big companies had their bail out's from the government, it bothered me to no end, for there are no bail out's for small companies.  It would be fitting their lay offs create new competition, and it would be even better if none of the big operations had bail out's and were forced to either break up into smaller companies or get out of the game all together.

 

The US and it's states are constantly providing low or no interest loans to small companies.  So, basically your statement here was incorrect.  GM was offered a zero interest loan, and did pay it off too.  Early if I recall.

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How is a no interest loan a bailout, Nargg? Care to explain that one to us? :confused: 

 

GM should've been left to die, as I've said a million times. Another better, stronger company would have emerged from the ashes, and all those unemployed would be working again. That's how capitalism is SUPPOSED to work. Save the bailouts for the communists. 

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On ‎2‎/‎4‎/‎2019 at 6:09 PM, JimmyJ_123 said:

legacy cost of white collar workers made them go bankrupt. It seems to still be an issue today. They should of took the buyout offer in my opinion. 

 

That's Bull Shit!!!  The white collar people lost most of the benefits and insurance policies they bought into a long time ago.  The union workers kept almost all there benefits, pretty much came out relatively unscathed. 

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Sure, it’s probably a complex problem of past liabilities (to pensions and other), and mismanagement, and overpromises, and bad design, and changing market, and oil prices, and Mexico, and politics....

 

But, bottom line it seems at the core, you have US factories producing vehicles that, when sold, average a $12,000 profit. You have US factories producing vehicles, that only break even. Finally, you have US factories that lose $9,000 for every vehicle they produce. 

If you’re the business owner, what do you do? Ignoring all the politics and legacy liabilities....

 

BTW, too bad the tax payer only "loaned" the money to GM. It should have insisted on convertible stock options, and used the potential profits to pay down the pension guarantees the tax payer is also on the hook for.

But governemt is a lousy investor for a reason. Its motivation is political and not profit.  

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My dad works (still) in St Catharines.  He's relayed a story or two.  It's real people losing their jobs.  No, not the "real people, not actors" from the commercials.  Actually, for all I know, they probably got laid off too.  It's kind of sad when you look at the individuals affected, and not just the state of the giant corporation. 

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People want guarantees.  You can't have them.  There is only one true guarantee in life-  that everyone who is born, will eventually die. 

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