Tom Krisher, THE ASSOCIATED PRESS
October 16, 2008
DETROIT - Another 1,600 workers at three General Motors Corp. factories in the United States will be laid off indefinitely over the next few months as the automaker tries to control its inventory amid a worsening U.S. sales slump. About 700 workers at GM's pickup truck plant in Pontiac, Mich., will be furloughed starting Feb. 1, while another 500 at the Detroit-Hamtramck sedan factory will be laid off starting Jan. 12, spokesman Chris Lee said Thursday. In addition, 400 workers at a two-seat sports car assembly plant in Wilmington, Del., also will be out of work starting Dec. 8. Workers were notified of the company's actions on Sept. 29, Lee said.
The Detroit-Hamtramck plant, which makes the Buick Lucerne and Cadillac DTS full-size sedans, already is down to a single daily shift. GM will reduce its assembly line speed from 56 to 38 cars per hour to achieve the layoffs, Lee said. The Pontiac truck plant, which makes the Chevrolet Silverado and GMC Sierra pickups, also is operating on one shift and will see its line speed go from 55 trucks to 24 trucks per hour. GM's Canadian subsidiary, which also makes the Silverado and Sierra pickups in Oshawa, Ont., has announced plans to close its truck factory in 2009. A spokeswoman said this week that there are no plans to speed up the plant's closure. In Wilmington, the plant that makes the Pontiac Solstice, Saturn Sky and Opel GT roadsters will go from two shifts per day to one, Lee said. "We don't need excess inventory out there," Lee said. "We adjust up and down to the market. Pickup trucks, as you know, have been impacted, and in this case our large luxuries have been impacted and the small two-seater niche products as well." Lee said the company plans no further plant announcements at this time.
George McGregor, president of United Auto Workers Local 22 at the Detroit-Hamtramck plant, said the union has known about the layoffs for a while, but didn't know the exact number. "We don't know when the return date will be. We are just holding on," said the 62-year-old, who has been a GM employee for 41 years. "We had a lot of people who retired early. With what's left now, we are just holding on, taking it day to day, year to year." McGregor's plant, which employs 1,500 hourly workers, is slated to build the Chevrolet Volt, GM's electric car with a small gas engine to extend its range. The Volt is due in showrooms in late 2010, but McGregor said the union is not sure when production will start.
During the layoff, workers will get close to full pay and benefits through supplemental pay and state unemployment. After 48 weeks they go into a jobs bank in which the company pays 85 per cent of their salaries, plus benefits. Within two years, the workers could lose pay and benefits if they don't transfer to another plant. GM said the Pontiac truck plant has 1,200 hourly workers, while the Wilmington factory has 1,100. The automaker announced Monday that it would shutter its metal parts stamping factory near Grand Rapids by the end of 2009, costing 1,520 jobs. It also sped up the end of SUV production at its Janesville, Wis., plant to Dec. 23, eliminating another 1,200 positions.
Industry analysts say the sagging U.S. auto market will force GM to close more plants. U.S. sales overall are down 13 per cent for the first nine months of this year, with predictions that automakers will sell 2 million fewer vehicles than they did last year. GM is burning through more than $1 billion in cash per month and analysts say it may reach the minimum amount of money to run the company sometime next year. GM's sales are down 18 per cent, and the company has lost $57.5 billion in the past 18 months, largely because of tax accounting changes.
GM shares rose 15 cents, or 2.3 per cent, to $6.37 in afternoon trading.

 

I wonder if the Big Three are kicking themselves for Only producing SUV's, Trucks for the last 15yr's. Way to look at the Big Picture. Now it effects even more people.

 

Yep...Trucks were the huge money maker in Oshawa plant. Too bad they didn't use some of the profits to invest in future products. The execs at GM have always been into the greed of dividends and their own egos. No fools like old fools

 

I think they built what people wanted to buy. Why did everyone else (Toyota, Nissan, Mercedes, etc) get into the SUV and Crossover market if people weren't buying them?

 

During the layoff, workers will get close to full pay and benefits through supplemental pay and state unemployment. After 48 weeks they go into a jobs bank in which the company pays 85 per cent of their salaries, plus benefits.

Not a bad benefit for being laid off. Close to full pay and lots of time to go job hunting. No wonder the US car prices are so high, workers getting nearly full pay and not having to work for it.

At 62 years old, George McGregor, UAW president needs to retire and let some other younger union bureacrat take over the reigns who will sit back, collect money as the workers sit home making 85% of their salaries, then wait for the government help them with their mortgage payments.

 

I agree .......... but didnt they ( Toyota, Nissan, Honda) also still produce some economy vehicles besides the the suv?

 

So did GM, Ford, and Chrysler. As a matter of fact, Toyota STILL has more SUV models than any other brand! GM's cars and trucks also individually get better mileage than competitors from the Japan Three.

I wonder why nobody is concerned about all the money Toyota and Nissan have lost developing and building their full-size trucks and SUVs over the last few years that will never sell. At least the plants GM is shutting down were already written off years ago.

 

Toyota, Nissan does not have the Money issues the big 3 have. They haven't been around long. Weather u want to hear it or not they don't have the Union B.S. To deal with.

 

Ya, Must be Hard to make it. Wonder what they would do if they only got 60% of there Pay.

Another reason to drop UAW. Image what Car price's would be without people making $40hr and 90% of there health care covered.

 

Exactly spot on.