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Old 21st November 2005, 22:41   #1
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Default November 2005 : GM to close 12 plants and cut 30,000 jobs!

General Motors is going to close 12 North American plants and cut 30,000 jobs as part of it's revival and turnaround strategy. 3,900 jobs will be cut in Canada when GM's plants in Oshawa close down in 2008. Almost the whole of that town works in some way in GM's plants there. Wonder what's going to happen in 2008. The St. Catherines plant in Ontario is also to close down in 2008. It's not just GM employee's but ancilliary industries or vendors that supply automotive parts that may have to close down and that may render more people jobless.
This is extremely big news guys, and it's still developing. Wonder what the unions have to say about this.

Last edited by amit : 21st November 2005 at 22:46.
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Old 21st November 2005, 22:50   #2
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In auto related news today, it was revealed that Toyota's market share in the US is now less than 1 percentage behind that of GM. Its 0.9% less than that of GM.

Ford Motor Co is now over 4% behind Toyota in marketshare, and has just announced its first jobcut of 4,000 employees.
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Old 22nd November 2005, 12:34   #3
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This is sure-shot! The giant ship is sinking

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Old 22nd November 2005, 18:33   #4
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This is good news actually for Indian Automobile Manufactureres..especially component manufacturers....Delphi is in a mess & many Indian Auto Component Manufactures are keenly looking at what's up for sale !!
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Old 22nd November 2005, 22:02   #5
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Quote:
Originally Posted by paharino1
This is good news actually for Indian Automobile Manufactureres..especially component manufacturers....Delphi is in a mess & many Indian Auto Component Manufactures are keenly looking at what's up for sale !!
If Tata Component suppliers are any indication of "Indian Auto Component Manufacturer" quality, thats a pipedream... so far the problems I have had on the Safari are all 3rd party component issues.
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Old 22nd November 2005, 22:06   #6
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Yeah read this news just today in the local newspaper, was shocked to read such a thing. Just was thinking about the employees who are working there would all of a sudden become jobless this is such a pity ..............
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Old 22nd November 2005, 22:09   #7
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Quote:
so far the problems I have had on the Safari are all 3rd party component issues.
Tata would yet be to blame for those malfunctions. Most manufacturers today are mere assemblers of cars built of parts from third party vendors.

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Old 22nd November 2005, 22:10   #8
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Quote:
Originally Posted by GTO
Tata would yet be to blame for those malfunctions. Most manufacturers today are mere assemblers of cars built of parts from third party vendors.

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I agree, but at least the Tata parts are troublefree so far. I know Subros, TVS and Minda engineers pretty well now
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Old 22nd November 2005, 23:00   #9
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I guess you can expect one more movie from Michael Moore on this. He first shot to fame by doing a movie on the biggest layoff by GM at his home town Flint. I think it was called Roger and Me.
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Old 22nd November 2005, 23:16   #10
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The ripple effect of this decision is beginning to sink in. For every job in GM's assembly plant, 3 are created in the auto parts industry. This means if 3,900 GM employee's are going to be laid off in Canada, then a further 12,000 will lose their jobs. GM may be sinking but it's going to sink a few more companies along with it. Ironically, there is no statement from the Bush administration yet because the Canadian government is all over the media since yesterday trying to calm people's fear's down. You can read about how auto part's makers are going to be hit because of GM's closures here
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Old 23rd November 2005, 04:10   #11
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well said Amit

GM is a big giant and hence it will take along some small companies.

I never liked their quality. GM FORD and Chrysler in The North America make cars that make even a tata looks better.

my current employer drived a dodge caravan and boy it really sucks.
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Old 23rd November 2005, 04:29   #12
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Oshawa plant in Canada has two car lines. Car line no. 1 manufactures the Chevy Impala and Monte Carlo while car line no. 2 makes the Pontiac Grand Prix and Buick Allure which is named the LaCrosse in the US.
Does this mean these cars will cease to exist come 2008? I rarely see any new Grand Prix, Monte Carlo's and Buick Allure's now. Maybe these models are on the chopping block along with the plants too..

Last edited by amit : 23rd November 2005 at 04:32.
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Old 23rd November 2005, 13:24   #13
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here's a good read on the financial numbers of Indian Automobile Component Manufacturers : http://www.ibef.org/industry/autocomponents.aspx

Key pt : Over the past two years, 7 Indian component manufacturers have won the coveted Deming Prize, one of the highest awards on TQM (Total Quality Management) in the world.

Bharat Forge, Sundaram Fastners are already BIG in their league..
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Old 23rd November 2005, 14:07   #14
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packs your bags GM, and we hate you for bringing all those gas guzzling cars to world.
BYE BYE
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Old 23rd November 2005, 16:51   #15
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The future does not look very promising for GM. If anything, it seems to be sinking down like a brick in water. Buttttttttttttttt There is no chance that the company will ever go under. See, every country has its own "infrastructural" organisations such as the postal service, airlines, railways etc. Governments will never allow these to shut down.

Similarly, the White House will do everything it can to prevent its largest auto manufacturer from going under. Loan guarantees, tax concessions, R&D rebates...you name it. How do you think all the american airlines are still flying?

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