GM to cut car production in North America, halt some models: source

[Eugene]

Last edited Mon Nov 26, 2018, 12:19 PM - Edit history (1)

Source: Reuters

DETROIT/WASHINGTON (Reuters) - General Motors Co plans to announce as early as Monday it will significantly cut car production in North America and stop building some low-selling car models, a source briefed on the matter said.

GM plans to announce a broader restructuring of its efforts as it shifts more of its focus toward electrified and autonomous vehicles, the source said.

GM declined to comment ahead of an expected announcement at mid-morning.

Cost pressures on GM and other automakers and suppliers have increased as demand has waned for traditional sedans. The company also has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.

-snip-

BUSINESS NEWS NOVEMBER 26, 2018 / 8:29 AM / UPDATED 5 MINUTES AGO
Paul Lienert, David Shepardson
4 MIN READ


Read more: https://www.reuters.com/article/us-gm-restructuring/gm-to-cut-car-production-in-north-america-halt-some-models-source-idUSKCN1NV1NB

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Updates: (thanks DonViejo in GD):

https://www.democraticunderground.com/100211474060

G.M. to Stop Production at 5 Plants in U.S. and Canada (New York Times)

GM to lay off 15 percent of salaried workers, halt production at five plants in U.S. and Canada (Washington Post)

[kwassa]

1. Ford is cutting out all their cars, aren't they?

Much of the American public has moved over to small SUVs instead.

The modern station wagon.

[VMA131Marine]

2. All except the Mustang

Not sure if that applies to Lincoln as well.

[scarytomcat]

14. and the camero

gas guzzling muscle cars
americans don't get it

[Amishman]

37. No, Americans are starting to get it which is why AWD crossovers are king

Unibody crossovers make total sense

Better interior room for the length / weight than a sedan
Better fuel economy than a body on frame SUV or truck
Ground clearance and AWD for winter weather, plus better visibility from sitting higher
They do a little bit of everything fairly well.

The truck based SUVs quietly faded over the years, even the 'full size' Ford Explorer and Dodge Durango are lighter unibody construction now.

This is that same consolation hitting sedans.

Not surprised by the layoffs, GMs middle management is insanely bloated and inefficient. They have to bring in contractors like me for special projects because their internal structure is so tangled and inefficient.

[Tikki]

3. Where we live, many drivers have already made the jump from hybrids to EVs.

We are headed to the L A Auto Show early next month to learn about
what is on the horizon in EVs that will fit our budget and lifestyle.

The Tikkis

[safeinOhio]

4. Japan will take up the slack, along with SK.

American car makers build to please stock holders.
Japan makes cars to please customers.


guess who builds better cars, or even builds cars anymore.

[watoos]

5. The consumers in Japan and SK are also more loyal.

We used to have a Buy American movement back in the day before Walmart moved in to town.

[workinclasszero]

13. Yeah I would agree with you

The American auto companies love 80,000 dollar plus gas hog pickups and SUV's.

Affordable high MPG sedans, not so much.

[safeinOhio]

15. I worked 30 years in car plant....

Quality was a marketing tool only.

[Calista241]

17. $80k is a lot to spend on any vehicle.

You can get a fully equipped, all the bells and whistles, top of the line Jeep for less than $60k. Even a Ford Raptor, the top of the line F-150, or the GMC Denali line, doesn't get much over $60k when it's totally, full equipped.

Now if you're talking Cadillac's, Porsches, Land Rovers, BMW, or Mercedes, then I can understand the $80k price point, but only one of those is an "American auto company."

[workinclasszero]

18. It's pretty close depending on the model and bells and whistles of course

2019 Ford F-150 SuperCrew

MSRP range $34,695 - $70,560

https://www.edmunds.com/ford/f-150/2019/supercrew/

[Tracer]

27. I will NEVER pay more for a car...

... than I paid for my HOUSE.

[Ohiogal]

28. Amen to that!!!

[workinclasszero]

36. IKR?

Terrible investments really. You lose thousands in value the day you drive it off the lot too.

[alfredo]

24. High ticket cars have higher profit margins.

[IronLionZion]

35. Both those countries plan way in advance

it seems like American automakers focus on very short term thinking

[Auggie]

9. It's a trend - VW dropped the iconic Beetle

[Maxheader]

25. I wish they were here in s. central kansas..

Dealers still pushing pickups and big suvs..

[watoos]

26. Not in the middle of your snow storm.

[IronLionZion]

34. And they're bringing back the Bronco and Ranger next year

these things are cyclical. Maybe if gas prices shoot sky high and people get tired of blaming Dems for gas taxes, they'll bring back more economical cars again. Always reactive.

[Historic NY]

6. So much winning

The company also has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.

[brooklynite]

7. I, for one, am tired of all the winning...

[Freethinker65]

8. But...but...but...Trump by himself has lowered gas prices

So all is well.

Who needs jobs?

[NCjack]

22. The Orange Menace forgot that car makers need steel and buyers. He

hiked the price of steel and killed the Obama stock markets, leaving many of us without the cash to buy a new car. Let's watch he and his family try to take up the slack and save USA's car manufacturers.

He doesn't know that the foot bone is connected to the ankle bone, the ankle bone is connected to the leg bone, etc.

[JohnnyRingo]

10. I have a lot of friends who work in the Lordstown plant.

It's been an economic foundation here since 1966. I really hope GM finds a new platform to build there.

[Ohiogal]

29. I know someone who works there

He said because of the age of the plant, and the way the line is constructed, they were told they can't bring another product in there without massive expense. It's just not looking good for that place to re-open, unfortunately. And it's HUGE --I can't fathom seeing it sitting there empty. So sad for all the employees. But, they've been down to one shift for a while now, so the writing was on the wall. It's a shame Americans won't buy small fuel efficient cars anymore.

[NickB79]

11. Cheaper gas has everyone buying trucks again

And in the meantime, the world burns from climate change.

Winning!

[brush]

12. Another indicator of the predictable repug admin recession.

Every time they get in, just as spring follows winter, recessions follow repug administrations.

[workinclasszero]

19. Every time...every.damn.time!

Why do the American people keep falling for the damned lies of the GOP!?

I will never understand why a working class voter would EVER vote for ANY republican!

It's literally, economic suicide!

[brush]

21. All they ever do is push tax cuts and the alleged trickle down that's...

supposed to come from funneling up money to the rich.

It never works but they keep pushing it every time they get in.

It's their only policy idea besides anti-gay issues.

[workinclasszero]

23. Every blue collar worker that voted Trump and the GOP will pay dearly for it

So will their children sadly.

Was the race hate/misogyny/white power worth it????

How's that white man in the white house working out for you GOP voting workers?? SMDH

[Ohiogal]

31. And Trump came here to campaign

and told all the fools who came to his stupid rally that he was going to make all the factories run three shifts and we'd see factories springing up all over the state. How could anyone be so stupid to believe his lies. Yet, many of them did. It infuriates me.

[workinclasszero]

32. Just like his promise of bringing back coal mining jobs

The suckers bought it big time.

[George II]

16. Yeah but....tariffs have reduced imports from China.

I wonder who those 14,000 workers will vote for in 2020? My bet is that most who voted for trump in 2016 will do so again in 2020.

[ffr]

20. So Elon Musk's vision is more right than GM's bigger polluting 4x4 truck vision?

Who knew?



Tesla turns a profit in what Musk calls ‘a historic quarter’ - WaPo

[duforsure]

30. taariffs and his new NAfta agreement

Will cripple all American auto manufacturers , thanks to trump and the gop.

[ooky]

33. Promises made, promises broken, and

the lies. All the endless lies, lies, lies, lies, lies. All those Trumptards who didn't want to pay for someone else's health care because they had theirs, will have to shop for health care, they shouldn't worry, he promised "terrific health care"...oh wait...another lie. Thoughts and prayers.