' ... At the factories, around 3,300 blue-collar workers could lose jobs in the U.S. and another 2,600 in Canada ... '
https://www.axios.com/general-motors-restructuring-electric-vehicles-2b7bbb52-2034-4d60-8375-409866626c31.html The electric vehicle stakes of GM's restructuring November 27, 2018 Ben Geman General Motors' plan to shutter several plants and cut thousands of workers is a glimpse into big changes that may loom as major automakers make the slow transition to electric vehicles. Driving the news: As my Axios colleagues reported, GM said Monday that it will cut 15% of its salaried workforce, estimated to be more than 14,000 people in North America. It will idle factories in Michigan, Ohio, Maryland and Canada. The intrigue: The auto giant called it part of a restructuring that will help devote more resources to fully battery-powered offerings — even as it also focuses on larger gasoline-powered products in the move away from some sedans. The company is focusing on crossovers, trucks and SUVs, while "resources allocated to electric and autonomous vehicle programs will double in the next two years," the company said. By next year, it will no longer make the Buick LaCrosse, the Chevrolet Impala, or the Cadillac CT6 sedan. The plan also includes killing off the Chevy Volt, a plug-in gasoline-electric hybrid with limited range first launched in 2010. The big picture: Autotrader analyst Michelle Krebs called the GM move the result of several forces, including a downturn in the North American and Chinese markets, a consumer shift toward SUVs, and tariffs and trade policy. But one impetus is to position itself for electric and autonomous offerings that won't be money makers any time soon, she tells Axios. "It has got to be very profitable right now to finance all that.” The automaker plans to launch at least 20 all-electric models by 2023. "GM is really betting big on autonomous and electric vehicles, and so it has got to shore up its profits right now prepare for that future." — Michelle Krebs But, but, but: Via Greentech Media, the Union of Concerned Scientists' David Reichmuth offers a critical view of GM's near-term positioning for its long-term, more electrified future. “I like what they said about electrification; the problem is what they’re investing in," he tells Greentech, noting the company's focus on SUVs and pickups. "I think GM and a lot of the companies know that electrification is the future, but they’re prioritizing the short-term profits from some of these less efficient gasoline vehicles," he says. What's next: Mark Muro, a Brookings Institution expert in industrial transitions, also tells me the GM move is about slowing sales in the U.S. and China and the shift away from sedans. But he adds, "The changes are equally all about accelerating the company’s move toward into the future of mobility. In that sense the restructuring reflects the company’s aggressive transition from gas to electric and analog to digital." That will shift the employee base, with more emphasis on software engineers and electrical engineers, Muro says. He called the changes part of maintaining a competitive industry. "There will be excruciating pain in some places left behind," Muro says. Go deeper: Look for more car factories to close [ https://www.axios.com/general-motors-american-automakers-closures-detroit-7315b7ba-da81-4786-af35-fef3aacb3675.html ] Analysts react to GM job cutsclose [ https://www.axios.com/analysts-react-to-general-motors-restructuring-2ce0a3eb-a459-4a24-a172-293073d4a09b.html ] Politicians react to GM closings in their backyardsclose [ https://www.axios.com/general-motors-plant-closing-politician-reactions-bd0dbd67-09fa-4daa-bfcd-843f991b94bb.html ] ... [© axios.com] https://www.chicagotribune.com/business/ct-biz-gm-plant-closing-restructuring-20181126-story.html GM to slash up to 14,000 jobs in North America; 7 plants could close as part of restructuring 2018-11-26 Tom Krisher Associated Press 6 cars to be killed by GM plant closures [image] General Motors follows Ford's and Fiat Chrysler Automobiles' pullout from the sedan segment with the planned closure of four factories in the U.S. and one in Canada by the end of 2019. In addition to laying off or buying out 14,000 employees, the planned discontinuation of the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevy Impala, Chevy Volt, and Chevy Cruze sedan and hatch is expected to save GM $6 billion (Robert Duffer) General Motors will cut up to 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles, the automaker announced Monday. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The restructuring reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off. At the factories, around 3,300 blue-collar workers could lose jobs in the U.S. and another 2,600 in Canada, but some U.S. workers could transfer to truck or SUV factories that are increasing production. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. Trump has harsh remarks for GM over layoffs » The company also said it will stop operating two additional factories outside North America by the end of next year, in addition to a previously announced plant closure in Gunsan, South Korea. General Motors Co.'s pre-emptive strike to get leaner before the next downturn likely will be followed by Ford Motor Co., which has said it is restructuring and will lay off an unspecified number of white-collar workers. Toyota Motor Corp. also has discussed cutting costs, even though it's building a new assembly plant in Alabama. GM isn't the first to abandon much of the car market. Fiat Chrysler Automobiles got out of small and midsize cars two years ago, while Ford announced plans to shed all cars but the Mustang sports car in the U.S. in the coming years. The layoffs come amid the backdrop of a trade wars between the U.S., China and Europe that likely will lead to higher prices for imported vehicles and those exported from the U.S. GM CEO Mary Barra said the company faces challenges from tariffs but she did not directly link the layoffs to them. GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong," Barra told reporters. Factories that could be closed include assembly plants in Detroit and Oshawa, Ontario, and Lordstown, Ohio, as well as transmission plants in Warren, Mich., and near Baltimore. The announcement worried GM workers who could lose their jobs. "I don't know how I'm going to feed my family," Matt Smith, a worker at the Ontario factory, said Monday outside the plant's south gate, where workers blocked trucks from entering or leaving. "It's hard. It's horrible." Smith's wife also works at the plant. The couple has an 11-month-old at home. Workers at the Ontario plant walked off the job Monday but were expected to return Tuesday. After the morning announcement, Barra was to head for Washington to speak with White House economic adviser Larry Kudlow in what was described as a previously scheduled meeting, according to a White House official who spoke on condition of anonymity because the official was not authorized to discuss the meeting publicly. GM, Honda teaming up to produce self-driving vehicles » President Donald Trump, who has made bringing back auto jobs a big part of his appeal to Ohio and other Great Lakes states that are crucial to his re-election, said his administration and lawmakers are exerting "a lot of pressure" on GM. Trump said he was being tough on Barra. He said he told the company that the U.S. has done a lot for GM and that if its cars aren't selling, the company needs to produce ones that will. At a rally near GM's Lordstown, Ohio, plant last summer, Trump told people not to sell their homes because the jobs are "all coming back." Most of the factories to be affected by GM's restructuring build cars that will not be sold in the U.S. after next year. They could close or they could get different vehicles to build. Their futures will be part of contract talks with the United Auto Workers union next year. The Detroit-based union has already condemned GM's actions and threatened to fight them "through every legal, contractual and collective bargaining avenue open to our membership." Bobbi Marsh, who has worked assembling the Chevrolet Cruze compact car at the Ohio plant since 2008, said she can't understand why the factory might close given the strong economy. "I can't believe our president would allow this to happen," she said Monday. She now faces an uncertain future, not knowing whether the plant will close for good or if there's a chance it could find another use. "Everything is up in the air," she said. "I don't want to give up hope for this facility and these people. I spend more time around them than my own family. It would be like breaking up a family." [image] Oshawa plant A worker checks the paint on a Camaro at the GM factory in Oshawa, Ontario, on June 10, 2011. General Motors may close the plant. Around 3,300 blue-collar workers could lose jobs in Canada. (Frank Gunn/Canadian Press) Democratic Sen. Sherrod Brown said the move will be disastrous for the region around Youngstown, Ohio, east of Cleveland, where GM is one of the area's few remaining industrial anchors. "GM received record tax breaks as a result of the GOP's tax bill last year, and has eliminated jobs instead of using that tax windfall to invest in American workers," he said in a statement. Many of those who will lose jobs are now working on conventional cars with internal combustion engines. Barra said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust. She said GM is still hiring people with expertise in software and electric and autonomous vehicles. GM will stop producing cars and transmissions at the plants through 2019. In all, six car models were scrapped, leaving the company with nine remaining car models. The automaker said it was ending Chevrolet Volt production because the vehicle was meant to be a bridge to fully electric cars when it was introduced about a decade ago. The Volt has a small battery that can take it about 50 miles, then it switches to a small gasoline engine. Since it was introduced, battery technology has improved dramatically. Now the full-electric Chevrolet Bolt can go up to 238 miles on a single charge. GM builds full-size Chevrolet and GMC pickups in Mexico, and it recently announced that a new Chevrolet Blazer SUV will be built there. Also, GM imports the Buick Envision midsize SUV from China. Building GM's Detroit plant cost thousands their homes. Now that factory is slated to close. » Among the possibilities on the chopping block are the Detroit/Hamtramck assembly plant, which makes the Buick LaCrosse, the Chevrolet Impala and Volt, and the Cadillac CT6, all slow-selling cars. LaCrosse and Volt production will end March 1, while CT6 and Impala production would stop June 1. The plant in Lordstown, Ohio, which makes the Chevrolet Cruze compact car also is on the list, and Barra said the Cruze would no longer be sold in the U.S. Production would stop March 1. Work on six-speed transmissions made at the Warren, Mich., transmission plant would stop Aug. 1, while the Baltimore transmission plant would stop production April 1, GM said. Meanwhile, GM's plant in Oshawa, Ontario, will stop making the Impala, Cadillac XTS and 2018 full-size pickups in the fourth quarter of next year. The Canadian plant appeared to be most in danger of closing. Ontario Premier Doug Ford said he talked to the head of GM on Sunday and was told "the ship has already left the dock" when he asked if there was anything Ontario could do. Canadian Prime Minister Justin Trudeau said he spoke to Barra on Sunday to express his "deep disappointment" with the closure. The AP’s Rob Gillies in Toronto, John Seewer in Toledo, Ohio, and Zeke Miller in Washington contributed. This story has been corrected from an earlier version to show that up to 14,000 workers could lose jobs instead of 14,700 ... MORE COVERAGE GM offers buyouts to 18,000 salaried workers in North America [ https://www.chicagotribune.com/business/ct-biz-gm-buyouts-earnngs-20181031-story.html ] ... [© chicagotribune.com] https://www.greentechmedia.com/articles/read/gm-restructuring-reveals-a-disconnect-between-suv-sales-and-an-ev-future#gs.FZ0IMgs GM Restructuring Reveals a ‘Disconnect’ Between SUV Sales Today and an EV Future November 26, 2018 General Motors’ long-term success may come down to how well it bridges the divide between current demand for lucrative, gas-powered SUVs and an all-electric future ... Union of Concerned Scientists’ clean vehicles program. “A lot of it in the short-term has been around their SUVs and pickup trucks. I think GM and a lot of the companies know that electrification is the future, but they’re prioritizing the short-term profits from some of these less efficient gasoline vehicles.” ... hypocrisy" GM’s reorganization arguably primes the market to move away from electrification, or at least pits the automaker’s near-term and long-term strategies against one another ... ... https://www.freep.com/story/money/business/2018/11/27/chevy-volt-donald-trump-general-motors/2120687002/ Chevy Volt was going to save Detroit. Now its workers are losing jobs Nov. 27, 2018 'Bring back jobs' On Monday, GM ... plans to close five plants, including the Detroit factory that built the Chevy Volt ... It will kill those cars, and a few others, after the assembly lines shut down. Thousands of American workers are likely to lose their jobs, from the factories that are closing and from the parts suppliers, transportation workers and the like whose jobs support the assembly plants ... GM engineers thought that engine would help traditional car consumers accept an electric vehicle. As it turned out, traditional car buyers were never going to ... [ref http://electric-vehicle-discussion-list.413529.n4.nabble.com/Will-GM-Ford-buyouts-cuts-layoffs-affect-EV-production-tp4691901.html ] ... https://www.google.com/search?q=GM+restructuring+electric { % h2-trolls waste evdl bandwidth % } For EVLN EV-newswire posts use: http://evdl.org/archive/ {brucedp.neocities.org} -- Sent from: http://electric-vehicle-discussion-list.413529.n4.nabble.com/ _______________________________________________ UNSUBSCRIBE: http://www.evdl.org/help/index.html#usub http://lists.evdl.org/listinfo.cgi/ev-evdl.org Please discuss EV drag racing at NEDRA (http://groups.yahoo.com/group/NEDRA)
