GM Announces Significant Production Cuts for Q1 '09

[Rob]

GM Announces Significant Production Cuts for Q1 '09

Moves In Direct Response to Rapidly Deteriorating Market Conditions

DETROIT - General Motors announced today a significant reduction of planned production for the first quarter of 2009 due to the ongoing and severe drop in industry sales, which were down 36 percent in November overall and 41 percent for GM (2007 vs. 2008). The impact of these and recently announced actions to adjust production with market demand, will result in the temporary idling of approximately 30 percent of GM's North American assembly plant volume during the first quarter of 2009 and will remove approximately 250,000 units from production.

The speed and severity of the U.S. auto market's decline has been unprecedented in recent weeks as consumers reel from the collapse of the financial markets and the resulting lack of credit for vehicle financing.

The following U.S., Canada and Mexico operations impacted by today's announcement include:

U.S.:

Ft. Wayne (Ind.) - Chevy Silverado, GMC Sierra Light Duty Regular and Extended Cab
Flint Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Regular and Crew Cab & Medium Duty
Wentzville (Mo.) - Chevy Express, GMC Savanna
Lansing Delta Township (Mich.) - Buick Enclave, GMC Acadia, Saturn Outlook
Pontiac Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Extended Cab
Spring Hill (Tenn.) - Chevy Traverse
Fairfax Assembly (Kan.) - Chevrolet Malibu/Hybrid, Saturn Aura/Hybrid
Arlington Assembly (Texas) - Full Size SUVs: Chevy Suburban, Tahoe & Tahoe Hybrid, GMC Yukon, Yukon XL & Yukon Hybrid, Cadillac Escalade/Escalade ESV & Escalade Hybrid
Lansing Grand River (Mich.) - Cadillac STS & CTS
Orion (Mich.) - Chevy Malibu, Pontiac G6
Detroit-Hamtramck (Mich.) - Buick Lucerne, Cadillac DTS
Shreveport (La.) - Chevy Colorado, GMC Canyon, Hummer H3 & H3T
Bowling Green (Ky.) - Chevy Corvette, Cadillac XLR
Wilmington (Del.) - Pontiac Solstice, Saturn Sky, Opel GT
Canada:

Oshawa Consolidated - Chevy Impala
Oshawa Truck - Chevy Silverado, GMC Sierra Light Duty Extended and Crew Cab
CAMI - Chevy Equinox, Pontiac Torrent
Mexico:

Silao - Chevy Silverado, GMC Sierra Light Duty Crew Cab, Chevy Avalanche, Cadillac Escalade EXT
Ramos 2 - Chevy HHR, Saturn VUE, Chevy Captiva
San Luis Potosi - Chevy Aveo, Pontiac G3
As a result of these assembly plant actions, GM will also continue to assess its powertrain and stamping capacity needs and make adjustments as appropriate.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 252,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 34 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at General Motors | Corporate Website | GM.

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CONTACT(S):
Chris Lee
Manufacturing & Labor Relations Communications
586-986-9520
586-899-3021 - cell
Chris.T.Lee@gm.com

Tony Sapienza
Manufacturing & Labor Relations Communications
586-986-9540
313-410-3302 - cell
Anthony.Sapienza@gm.com

Susan Waun
Manufacturing & Labor Relations Communications
586-986-9818
313-909-0693 - cell
Susan.Waun@gm.com

 

[PassionDiva5150]

I think this is just the start. I took the CTS in yesterday for a oil change, and was talking with my service writer and the service department manager. I told them I needed to get Passion Diva in after the first of the year for a laundry list of problems. The service manager, requested I get her in before the end of the year, just to be safe, since they are not sure what is going to happen. He was also telling me, they have laid-off almost half of their service staff, from shuttle drivers, cashiers, to techs.

 

[Jetboy]

Have them look at the black trim on the door sills and windows. My dealer replaced all of mine under warranty or a service bulletin when I took it in before BBB and I had not even aksed about it. Mine looked about like PD's.

 

[PassionDiva5150]

Jetboy, I will, thanks. My list just continues to grow.

FYI
This is a letter to the editor in the Fresno Bee today.

'Fifty years of junk'

We were married in 1959. I sold my '56 Chevy because my in-laws gave us a brand new Mercury Comet. What a piece of junk! My husband's salary went mostly to keep the car going.
Then we got a VW Square Back; it took our growing family through several years of pretty good use. After that we got a Datsun, and that performed OK. Not super, but OK.
Then we thought we should support the American product. So we bought a Buick. Nothing but problems. Then we bought a Mercury Cougar. Same story. The motor mount broke, other problems occurred, and all of it was always very expensive to repair. Next came a Ford Taurus. The motor mount broke on this one also. We finally saw the light and bought a Toyota -- ran like a top -- later gave it to our son, and we bought a Honda. It runs like a top as well.
Do you think I favor a bailout for these boobs in Detroit who have stolen from us all these years? Fifty years of junk, and now we are bailing them out? Give me a break.
Randi Greteman
Fresno

 

[Jetboy]

VW squareback brings back fond memories. I learned to drive in one. My Mom has driven Lincolns since 1960 which forced my Dad to VW's. A series of Beetles then two Squarebacks, a 411, a 412 which was a POS and then he jumped ship to Mazda's for the rest of his life. I was born in a 55 Mercury Monterey so I hate to see the Mercury brand go away.

 

[Lola's Mom]

This thread should probably be moved since I plan to hijack it .... .... But having said that, I think it is interesting what cars our parents did drive before the foreign invasion began - mine drove a De Soto ... never even over-heated in the desert when we crossed, of course, my dad hung a radiator bag on it to keep it cool! And then our brand new '56 Dodge Coronet .... awwww, what a beauty (I learned to drive in that) .... seems like people used to keep their cars until forever back then .... after that, it was Dodge, Ford, Buick. I don't remember my parents ever complaining about car repairs .... Our nightmare repair problem was a Nissan pickup that Ray bought for work .... what a pain in the behind that thing was .... other than that and Lola (she's always been high-maintenance) we've been very lucky with our 30-odd autos.

 

[PassionDiva5150]

Hijack to your little heart's content!! As a child, my Parents always drove Fords, we even had a Edsel (don't laugh). Every 2 years my Dad would spend 2 to 3 weeks buying a new car. He loved the "game". He would go into the dealership, pick out the car he wanted, and then the back and forth would start. I can remember the salesmen driving the cars to the house for "one more look", and then taking it back, because they had not got down to the price Daddy wanted to pay. I don't remember any big problems with the cars, and Daddy drove the heck out of them. One of our favorite things was going to the local drag races, where he raced our family car. One year, he even won the Nationals in Oklahoma City, for his division. I got my love of cars from him. When I was young, we would spend the day going from car lot to car lot, just the two of us. I can still do it today.

Mark and I have had our share of cars, and the only big problem was the 04 XLR, and as most of you know, Mark drives the SH** out of his cars (mine too sometimes) He came by today to bring in some Brandy and Wine for my guys, and as he left, you could hear him all the way down the street. Everytime he shifted, it screamed!!!

 

[mswaim]

The planned production cuts are the smartest thing I have heard yet. Until the market comes back, they need to cut back, furlough employees and spend time on designs to carry them into the next decade.

No one likes muscle cars more than me, and I hope the Big Three (well, really just the Blue Oval since they are the only ones who really remember what a muscle car is) continue to offer low-production specialty products.

But they need to bank the good years and built smarter - not necessarily better. I like American cars, of all we have owned the only lemon in the lot was the 04 XLR so that's not a bad average in my book.

The bottom line is; the Big Three need to focus on the fact there is currently no market for their products so they appear pretty sad standing with their hands out looking for help. No matter how much cash they get, there is a cold reality we all need to face.

Dealerships will continue to close, employees will continue to be laid off. There is no market; and the dealerships have no buffer. They did not plan ahead, so they must now face the same reality all small businesses must face - and have faced for many many years.

 

[XLR-V Lover]

Uhhh, last time I checked GM makes a pretty good limited edition, I think the Vette ZR1 would easily qualify as would Chrysler's Viper. IMHO. . .

Floyd (BB)

 

[HOMEGAMEROOM]

The VW Squareback brings back memories for me too! It had an interesting vinyl smell when it was newer, and my nose occasionally will still catch a reminiscent whiff of it in areas with a quantity of newer synthetic materials. I probably remember scents better than events!

I think I may have also received my first hangover in it as well. The heater hoses eventually rotted away, so my Dad used to keep a spray bottle of alcohol in it to deice the windshield in the winter. I think he got rid of the car in the very early 70's.

 

[mswaim]

Uhhh, last time I checked GM makes a pretty good limited edition, I think the Vette ZR1 would easily qualify as would Chrysler's Viper. IMHO. . .

Floyd (BB)

I believe Chrysler is looking to sell the Viper Performance brand to a third party; they need the cash.

Also include the XLR/V based on their rapidly declining sales long before the market dropped.

 

[XLR-V Lover]

I believe Chrysler is looking to sell the Viper Performance brand to a third party; they need the cash.

Also include the XLR/V based on their rapidly declining sales long before the market dropped.

I believe you'll find all brands could use an infusion of cold hard cash.

I haven't heard of Chrysler wanting to sell the Viper, but I'd be surprised if the right offer came along they didn't accept it.

According to the latest recession news, we've been in a recession since 12/07, not that that necessarily impacted the "V," but it may have had a negative effect on a car that, unfortunately, Cadillac gave up on long ago.

Floyd (BB)

 

[Jetboy]

The VW Squareback brings back memories for me too! It had an interesting vinyl smell when it was newer, and my nose occasionally will still catch a reminiscent whiff of it in areas with a quantity of newer synthetic materials. I probably remember scents better than events!

I think I may have also received my first hangover in it as well. The heater hoses eventually rotted away, so my Dad used to keep a spray bottle of alcohol in it to deice the windshield in the winter. I think he got rid of the car in the very early 70's.

Ah, the smell of fine leatherette

 

[Jetboy]

I believe you'll find all brands could use an infusion of cold hard cash.

I haven't heard of Chrysler wanting to sell the Viper, but I'd be surprised if the right offer came along they didn't accept it.

According to the latest recession news, we've been in a recession since 12/07, not that that necessarily impacted the "V," but it may have had a negative effect on a car that, unfortunately, Cadillac gave up on long ago.

Floyd (BB)

Chrysler has been in tolks on the Viper for months. Tough for a buyer to come up with cash in thei market. I am only guessing but I think Tata would be the leading candidate. Challenger sales have not been too bad.

Since Saturn is a wholly separate company, I think GM may have a chance at selling that and Saab if global financing ever opens up. All the economists I trust are saying mid 2009 before things start to ease and mid 2010 until the economy can start growing again on it's own.

 

[mswaim]

Well, I for one would hate to see any of them lose their limited production products since that is where we seem to buy most of our cars! But times are tough and tough choices must be made.

The good news - if history repeats itself, once things turn around the "boys and their toys" crowd (guys and gals whose opinions count when it comes to competition) will rise up and begin designing the next generation of specialty cars/trucks for those of us willing to pay gax guzzler & luxury taxes.

I know I paid out a chunk on the Shelby!

And I am getting my money's worth every time I turn the key!!!!!

 

[XLR-V Lover]

And I am getting my money's worth every time I turn the key!!!!!

What's a key????????

Floyd (BB)

 

[Lola's Mom]

Remember when new cars came out in the month of October .... and every new car dealer had rotating spotlights at their showrooms and you could see the "spot" from everywhere and the lure of those lights would bring the families in to ohhh and ahhh, raise the hoods and kick the tires? Those new cars all fit on one showroom floor. Now - a parking lot cannot house the models, new models, and sub-models, that each maker produces. Keeping quality on that many models from the past and produced new each year is impossible. Heck - I see cars on the road and can't even guess who makes them. If it wasn't for all of the advertising chrome and logo's they would all just be mystery vehicles. It's time for them to sort out the junk and concentrate on doing a few models well - nothing like the good ol' days. My 2 cents.

 

[mswaim]

What's a key????????

Floyd (BB)

You know, it's that metal thing that you have to use in the lock in your rear bumper that unlocks the trunk so you can unlock your doors so you can unlock your hood to start your technologically-advanced automobile(due to its under-sized battery).

Me, I use it to turn over the 500 horses under the hood of my stone-age muscle car......of course its a bit tougher now that the dyno says its closer to 600! Just don't tell PD; she still thinks that deeper rumble is the fault of mufflers that are still "breaking in"..........

 

[XLR-V Lover]

Have never needed it--actually, I can't even tell you where it is. As a daily driver the battery stays well charged.

But, if I do ever happen to be in the described situation I believe a call to OnStar will set things right again--could be wrong as I've never had to use this service. . .

Floyd (BB)

 

[Lola's Mom]

It's happened to me ....
Better have your cell phone handy to call OnStar since you will be outside looking in. Unfortunaltely, I locked my purse in the trunk which had my KEY on my FOB in it along with my cell phone ....
I was in the Costco parking lot and had to borrow a strangers' cell to call OnStar - Yep - they can unlock your car doors ..... and, if you need one, even send the technician out with a new battery..... but since that has happened and because it is a known flaw with the car, I make sure that Lola is driven regularly.
It's a quirk of the car that I am willing to cheerfully acknowledge .... a small price to pay for the look, comfort, and that unbeatable, oh, so beautiful sight of the top coming down.