Team-BHP - General Motors to close seven factories globally & lay off 15% of its workforce

Quote:

Originally Posted by RM Motorsports (Post 4502231)

Besides shutting down a number of manufacturing facilities, GM will also reduce overall workforce by 15 percent in order to save GBP 3.5 billion (about Rs 31,800 crore)

https://www.autocarindia.com/car-new...lobally-410575

Of the two unnamed factories outside North America, could it be the India factory as well? This is just a hunch, but they were planning to sell it to Essar?

Clearly, the view from inside GM is different from what we are seeing. The industry is undergoing drastic changes, and there are many more game-changing technologies coming. For Mary Barra to announce such hard-hitting moves, the future wouldn't have been a pretty sight.

IMHO, General Motors was too bloated & too fat, even after their 2008 bankruptcy. This weight loss is necessary and more will be coming. General Motors needs to better prepare itself for the 'tomorrow' of the industry.

Quote:

Originally Posted by amtak (Post 4502286)

Of the two unnamed factories outside North America, could it be the India factory as well? This is just a hunch, but they were planning to sell it to Essar?

They have already sold the factory to SAIC. MG is being launched from the old GM factory in Halol.

Quote:

Originally Posted by GTO (Post 4502658)

IMHO, General Motors was too bloated & too fat, even after their 2008 bankruptcy. This weight loss is necessary and more will be coming. General Motors needs to better prepare itself for the 'tomorrow' of the industry.

2008 was liposuction - sucking fat out but not addressing the chronic cause

2016 is the beginning of Bariatric surgery. Addressing structural issues, fitness strategy. Stopping toxic negative cashew entities

This is all about GM missing out on boom in SUV and pick-up truck sales. All seven factories make sedans that are no longer in demand.

Ford too stopped selling sedans in the United States
https://www.team-bhp.com/forum/inter...s-survive.html

I wonder what will happen if Americans go back to sedans (sometime in the future)! What car manufacturers need is flexible factories that make a mix of vehicles (hatchbacks, SUVs, sedans, sports cars, pickup trucks etc). Or perhaps a single platform (Eg: VW's MQB platform) on which different types of vehicles are built.

The EV1 was killed by the US govt. Otherwise we would've seen the US car makers beating Japanese and Euro cars head to toe in technology and sales. The US govt killed it in the interest of their Revenue from Oil. Come 2008, the bankrupt Big Two plus struggling Ford made a pledge to make majority of their cars fuel Efficient and start the technology move toward electric car.

In 2019, Ford, Chrysler and Now GM have cut their Fuel Efficient sedans and hatchbacks as they could not compete with the lean, mean and efficient Jap cars. The luxury sedan share is taken away by the Germans. The US three are now focusing on the profit making SUV's and they are not the Big three anymore.

When we look at how Infiniti, Lexus and Acura have taken away market share in the luxury space, we have to term Chrysler, Lincoln and Cadillac as failures. A decade after GM killed lots of brands, Buick still doesn't make sense, Lincoln still doesn't have a hyper car in its lineup and Cadillac is still as unreliable.

I am seeing Both GM and Chrysler dying a slow death. GM will soon axe Buick and their operations will be limited to the North American Market. I wonder what will happen with Holden (PSA will probably purchase Holden as it complements Opel-Vauxhall.)

This news is just a passing phase until their extinction. The only way I see them surviving is like the British Motor car industry where every brand is now a subsidiary of other car maker.

Quote:

Originally Posted by devarshi84 (Post 4503437)

When we look at how Infiniti, Lexus and Acura have taken away market share in the luxury space, we have to term Chrysler, Lincoln and Cadillac as failures. A decade after GM killed lots of brands, Buick still doesn't make sense, Lincoln still doesn't have a hyper car in its lineup and Cadillac is still as unreliable.

Acura is a joke.

Cadillac alone (Not including Buick) sold more vehicles in USA than Acura in 2017. Based on sales numbers Acura would die much before GM.

The steel tariffs are going to cost GM roughly US $ 1 Billion.
GM hopes its restructuring saves it US $6 Billion.

What does a company do when it is faced with a Stable Genius in the White House who does not understand that tariffs hurt the US more than they hurt other countries.

China tariffs on US imported soya beans is causing US farmers to file for bankruptcy.
Farm Bankruptcy

The stable genius is now threatening to cut all federal subsidies to GM because they are shutting factories.
GM Subsidies Cut

Also DJT wants to cut GM Electric car subsidies.
GM Electric Car Subsidies

I feel sorry for GM Ceo Mary Barra. She has to deal with president who managed to bankrupt casinos.