New Book says GM wanted to merge with Ford

[NJGOAT]

Originally Posted by dkf747

Lost jobs. How much business sense does it make when Americans can't afford to buy their cars?

America isn't the only market GM exists in and it isn't even their largest market anymore. Still, if we really want to get down to brass tacks, the reason the shutdowns occurred is that the US auto market went from about 16 million cars a year in 2007 to 12 million cars a year today. That's a 25% reduction in auto sales in the United States.

Spend any amount of time reading industry news and you will see that GM has made many positive strategic decisions to increase it's profitability and survivability long term in the market. In fact, they are now one of the healthiest automotive companies out there.

Additionally, some of the plants that article refers to as being shutdown were parts plants owned by GM. Quite a few of those parts were outsourced to other US companies. In fact the auto industry as a whole has added 113,000 jobs in the US since GM and Chrysler emerged from bankruptcy.

They are also now beginning to re-open plants in the United States and expand operations at others. The old Spring Hill Saturn plant in TN is being retooled and will put more than 2,000 people back to work. The Warren and Romulus assembly plants in Michigan are adding shifts worth another 500 workers. GM chose to assemble the new Sonic compact in the United States using an incredibly advanced assembly plant, forgoing the opportunity to build the car in Mexico, China or Brazil. GM also still employees the most US workers of any auto company.

[dkf747]

Originally Posted by NJGOAT

America isn't the only market GM exists in and it isn't even their largest market anymore. Still, if we really want to get down to brass tacks, the reason the shutdowns occurred is that the US auto market went from about 16 million cars a year in 2007 to 12 million cars a year today. That's a 25% reduction in auto sales in the United States.

Spend any amount of time reading industry news and you will see that GM has made many positive strategic decisions to increase it's profitability and survivability long term in the market. In fact, they are now one of the healthiest automotive companies out there.

Additionally, some of the plants that article refers to as being shutdown were parts plants owned by GM. Quite a few of those parts were outsourced to other US companies. In fact the auto industry as a whole has added 113,000 jobs in the US since GM and Chrysler emerged from bankruptcy.

They are also now beginning to re-open plants in the United States and expand operations at others. The old Spring Hill Saturn plant in TN is being retooled and will put more than 2,000 people back to work. The Warren and Romulus assembly plants in Michigan are adding shifts worth another 500 workers. GM chose to assemble the new Sonic compact in the United States using an incredibly advanced assembly plant, forgoing the opportunity to build the car in Mexico, China or Brazil. GM also still employees the most US workers of any auto company.

I'm glad to read that. We need more jobs here in the US.