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I am not arguing that GM is not facing formidable challenges, only that logic and history have proven many times over that it is impossible to grow by reducing. If cars are not profitable, then determine why and fix the problems! Abandoning an entire large market segment to their competition just because GM is inefficient in that segment will not save GM in the long term. If they can't find and fix the problems in the car segment, these problems will only haunt them in the Truck & SUV segments.
I am glad I voluntarily left GM while still young enough, age 56, to find secure alternative employment.
I am not arguing that GM is not facing formidable challenges, only that logic and history have proven many times over that it is impossible to grow by reducing. If cars are not profitable, then determine why and fix the problems! Abandoning an entire large market segment to their competition just because GM is inefficient in that segment will not save GM in the long term. If they can't find and fix the problems in the car segment, these problems will only haunt them in the Truck & SUV segments.
I am glad I voluntarily left GM while still young enough, age 56, to find secure alternative employment.
Honestly, it makes sense that they’re axing several cars and possibly several plants. I believe places like Hamtramck and Fairfax are producing two or three low volume vehicles at them. That doesn’t really make for good business.
I always see tons of Cruzes around. You can get thousands off of MSRP and that’s what is attractive even if their reliable and quality are spotty. Japanese and Korean manufacturers make better small vehicles, and Chrysler, Ford, and now GM have acknowledged that by ceding the market to them.
Who was the last auto manufacturer who existed only on light trucks and SUV's?
Oh, that's right. International Harvester!
GM should be identifying and fixing their car production profitability problems before these same problems destroy their truck business. Or, they can become the next I-H.
Cutting out unprofitable business lines is a no brainer. Let the Japanese and Koreans build unprofitable or barely profitable cars and let GM focus on building higher margin pickups, SUVs and crossovers. GM isn’t permenantly reducing their product lines either. They are getting rid of things that don’t sell to allocate billions in capital in electric vehicles which they are poised to be a leader in with Cruise.
I am not arguing that GM is not facing formidable challenges, only that logic and history have proven many times over that it is impossible to grow by reducing. If cars are not profitable, then determine why and fix the problems! Abandoning an entire large market segment to their competition just because GM is inefficient in that segment will not save GM in the long term. If they can't find and fix the problems in the car segment, these problems will only haunt them in the Truck & SUV segments.
I am glad I voluntarily left GM while still young enough, age 56, to find secure alternative employment.
By that logic horse breeders should be trying to fix horses so they can compete with cars.
They are getting rid of things that don’t sell to allocate billions in capital in electric vehicles which they are poised to be a leader in with Cruise.
Like the Volt? Oh wait they are killing that too!
The Silverado is fixing to drop behind the Ram in sales, it's not even a race anymore with the Ford F150.
Like the Volt? Oh wait they are killing that too!
The Silverado is fixing to drop behind the Ram in sales, it's not even a race anymore with the Ford F150.
Volt is a hybrid. It is a great car and I personally loved the ability to charge the battery on gas while driving but it is too expensive for the market and people aren’t buying enough to make a profit. GM is getting rid of the Volt so it can eventually make a profitable all electric car that is 5-10k cheaper than the dual gas-electric.
Below is the list of Assembly Plants GM has closed since 2000, in no particular order:
New United Motors Manufacturing Inc (now Tesla site)
Oklahoma City, OK
Shreveport LA
Atlanta, GA
Linden, NJ
Wilmington, DE
Baltimore, MD
Janesville, WI
Lansing #2, MI
Pontiac Truck, MI
1/3 of Oshawa Auto-plex, ONT (Oshawa had three Assembly plants)
St Therese, Quebec
Moraine, OH
With the latest round of announcements GM will be closing the additional assembly plants:
Lordstown, OH
Hamtramck, MI
Remaining 2/3's of the Oshawa Auto-plex, ONT
Since 2000 GM has only opened one new Assembly Plant in US or Canada
Lansing Delta Twp, MI
The above is based on my memory only, I managed construction projects at all of these sites with the lone exception of St Therese, and it does not include any of the Engine, Transmission, and Stamping plants which have also been closed since 2000.
GM keeps loping off the infected limbs, but I see no evidence they have found and cured the underlying disease yet.
I always see tons of Cruzes around. You can get thousands off of MSRP and that’s what is attractive even if their reliable and quality are spotty. Japanese and Korean manufacturers make better small vehicles, and Chrysler, Ford, and now GM have acknowledged that by ceding the market to them.
I see "tons" of Cruzes, and even Darts and Fusions, here in Ohio. But in DC or Los Angeles, these cars are rarities. Instead one sees Civics and Sentras, or upmarket alternatives.
All of the domestic Big 3 have decided that conventional passenger cars lack sufficient business-case. This is sorely disappointing to the portion of the buy-American crowd, which still wants a sedan or coupe. But how large is that market? I would love to have a new car with a carburetor and a hand-crank (in lieu of electric starter), but how large is that market?
GM is infamous for cancelling its more memorable cars, just as they were beginning to become good (Pontiac Fiero, Chevy Caprice, Pontiac G8, Chevy SS). But this time, one suppose that their hard-nosed business-decision is quite rational.
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