GM Closing 3 Plants Plants, 30,000 layoffs - Ouch!

Kirby

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NEW YORK (CNNMoney) - Embattled automaker General Motors Corp. announced Monday it would close three U.S. assembly plants by 2008 in an effort to stop billions in annual losses at its core North American auto operations and make deeper cuts than previously announced.

The company said the plan is aimed at saving $7 billion a year by the end of 2006.

The plants being closed include Oklahoma City, and the Lansing, Mich., Craft Centre in 2006, and Doraville, Ga., in 2008. In addition, some shifts will be eliminated at three other assembly plants.

GM also said it will shut six other facilities, including stamping, service and parts, and powertrain facilities. The company said the full range of cuts will eliminate 30,000 hourly jobs through the capacity reductions, up from its previously announced target of 25,000 job cuts.
 
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epj3

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PhatBimmer said:
I agree with BMW 325i 7803
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For once, I do too.

I personally think GM owners should be insulted. The reason they are in this mess is becuase GM thought they could sell shitty products forever on the basis they aren't foreign - they think consumers are STUPID. Not anymore, and it is finally biting them in their collective asses. Not that they care about the working man anyways. Those 30k people are just a cost to their company.

I know this isn't the only reason for the money problems - there is of course the unions which work against the company.
 
Pete K

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I want GM to do well. Really, I do. A lot of Americans make a living designing, building, selling, servicing American cars. But GM seems like a huge leaking ship where they can't stop the leak and it's slowly sinking. They should have tried to plug the leak 20 years ago when they still had a chance at saving themselves. I actually think they are capable of making decent vehicles now, but that was certainly not the case 20 years ago. Just look at all the 20 year old bimmers, Benzes, Toyotas, etc still running. How often do you see a 20 year old Chevy?

I also have to say that to a certain extent it's cachet that keeps European car sales healthy in the US. If or when that wears off they'll be nothing to stop the Japs from taking over the market. VW and MB are already struggling.

In the 70s GM owned over 50% of the US market and sat back on their laurels while the Japs were steadily improving. They learned from their mistakes. Why can't GM?
 
Kirby

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Yes, the ripple effect will be huge for years to come. You've heard of the "Butterfly Effect", this is going to be the "Beached Whale Flopping in the Swimming Pool" effect.
 
Chesty Bonds

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The word on the market is that GM could file for bankruptcy *shudder*

This would really make the fit hit the shan I think; GM is basically the backbone of American manufacturing.
 
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epj3

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Chesty Bonds said:
The word on the market is that GM could file for bankruptcy *shudder*

This would really make the fit hit the shan I think; GM is basically the backbone of American manufacturing.
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Nah, I mean in terms of production numbers I guess they are pretty damn high, but we have some of the largest companies in the world. Like Boeing who will totally beat the airbus 380.
 
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Big Daddy

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Big weekend boosts Boeing sales, stock

"While 2005 is on pace to be a record year for new aircraft orders for both companies, Boeing is emerging as a clear winner. Even before the air show, Boeing had 657 orders to 494 for Toulouse, France-based Airbus as of the end of October."

Chicago Tribune
 
Bmw 325i 7803

Bmw 325i 7803

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Big Daddy said:
"While 2005 is on pace to be a record year for new aircraft orders for both companies, Boeing is emerging as a clear winner. Even before the air show, Boeing had 657 orders to 494 for Toulouse, France-based Airbus as of the end of October."

Chicago Tribune
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I find it interesting that Airbus is updating the A340 into an A350 to challenge the smaller (than a 747) long range 787... They should have just built another plane with better fuel efficiency than Boeing's 787, I guess they feel their jumbo A380 is going to suffice. Boeing thinks efficiency is the future for the industry and Airbus thinks volume...
 
I

I love my 5 Series

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Those 30,000 GM employees sure aren't going to buy another Tahoe/Silverado/GTO, etc. GM is going to lose another 30,000 vehicle sales!

By the way, most Toyotas, Hondas and Nissans are manufactured right here in the US. BMW builds X5's and Z cars in S Carolina. MBZ builds M class SUV's in Alabama. We do build good cars here. Check the VIN numbers and you can tell where your car is from (first digit is the country of manufacture 1-5 is North America).

The domestic's problem is that they think people will keep forgiving them for producing low quality junk. They just come up with another report stating how the "new" Ford, Chevy, Buick, Pontiac, Dodge, etc. has learned and they are building "world class" cars. Remember Ford's Contour/Mercury Mystique? They were suppose to take on the Accord/Camry. How many Contours/Mystiques do you see on the road today? Remember that they did sell quite a few of them.
 
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