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GM to Idle Plants

Troubled automaker General Motors, struggling to save cash, said today that it will cut production by idling five manufacturing plants for brief periods of time over the next two months.

During the week of Dec. 8, GM will shut down a plant in:

-- Wentzville, Mo.

For the week of Jan. 5:

-- Lordstown, Ohio
-- Orion, Mich.
-- Fairfax, Kan.

For the week of Jan. 12:

-- Oshawa, Ontario, Canada

The plants make everything from cars to SUVs and trucks.

GM said it plans no permanent workforce reduction at the idled plants, which employ about 16,000 workers.

-- Frank Ahrens

The Ticker is Twittering!

By Frank Ahrens  |  November 21, 2008; 1:41 PM ET
Categories:  The Ticker  | Tags: General Motors  
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Next: Hill to Detroit: You Want Money? Play By Our Rules.

Comments

As the Congressional hearings indicated, senators and congressmen alike stated that the big 3 automakers have a failed business model. There was a recent segment on one of the national news stations showing workers in the south at a Honda plant. There CEO only receives a million dollars in salary, the workers have a job for life and when the plant went idle the company paid the workers during their layoff to go out into the community to perform community services. The workers mentioned that this was the best company they ever worked for as they treat their workers with respect and because of that, the workers want to do their best to help their company succeed. Their auto lines are efficient, their management structure is lean and they are able to make significant changes within a short period of time when the market conditions warrant.

Compare that to the adversarial role between labor and management in the U.S. auto industry over the last 40 years, the redundancy of autos, GM makes over 60 models and 100 of variations of those models and a bloated management structure resistant to change.

The managers should have foreseen the fact of the emerging third world companies competing for fewer resources, would drive of the price of fuel. The fact that the auto manufactures lobbied Congress against any legislation that would increase fuel efficiency is an indication of the arrogance and stupidity of the CEO's of these companies.

The rationale that they would selling to consumer demand is ridiculous when their top economic advisers should have been warning them that both India and China would be consuming more than 50% over the next 10 years which would drive up the price of crude oil. They should also have been aware that any disruption in the supply of oil caused by war etc. would eliminate consumer demand for these products.

Their business model is flawed and their own expert states that they would not be able to pay back the taxpayers the bailout money. Throwing good money after bad, is not the solution.

Posted by: Ecoclimber | November 21, 2008 3:11 PM | Report abuse

Im not sure how much money this will save when GM employees get 95% of their salaries even when they are not working.

Another empty idea from the head of Rick Wagner

Posted by: indep2 | November 21, 2008 4:12 PM | Report abuse

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