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GM's Hamtramck plant closing reopens old controversy in Detroit
Maybe the naysayers were right all along.
General Motors' decision to close its Hamtramck assembly plant recalls one of the most bitter development controversies in Michigan's history. Closing the plant will no doubt open old wounds — and raise anew questions of who benefits from such massive urban revitalization projects like the Hamtramck plant.
First, some history. By the early 1980s, then-Mayor Coleman Young was seeking to create jobs for economically distressed Detroit. He agreed to support General Motors’ plan to build its new assembly plant on the border of Detroit and Hamtramck.
But the more than 300-acre site was home to a Polish neighborhood known as Poletown. It featured about 4,000 residents, more than 1,000 houses, several Catholic churches and more than 100 businesses
Maybe "bad forecasting" isn't really the case here. Ford is responding to a market trend proactively (fewer passenger cars), and so are other motor vehicle manufacturers. Even VW has dropped its Passat sedan here (produced in Tennessee).
Yeah, the vehicle market is changing for ALL manufacturers.
Not a lot of reason to single out GM.
People want large SUV's, and pick up trucks now, not sedans, or EV's. The company is just responding to the market. Plants close, plants open. That's the business world.
There's a fairly new commercial about the Mercedes Sprinter van, touting the 'configurability' and that it will be built in South Carolina.
Apparently Ford cars aren't selling either. Actually I the date wrong, it was not announced last month, it was back in April. The only "cars" it's going to offer are the Mustang and the upcoming Ford Focus Active. Everything else will be an SUV or a truck.
So, they're getting rid of cars that aren't selling and firing the workers who built said cars. I don't see the issue. It happens all the time in many industries.
It sucks that those people will be out of a job, but with the current red-hot job market, they should be able to find work elsewhere.
Maybe Trump can also talk GM into bringing some of the vehicles they build overseas back here to fill those factories. The CEO of GM is supposedly going to The White House to have a meeting with Kudlow tomorrow.
Apparently Ford had bad forecasting too. It announced just a month or so ago that it was dropping all but 2 of it's cars.
Ken
Ford has been laying off around the world. They will layoff in the US soon as the cost of tariffs and high interest rates from Trump policy cut their sales even further than they already have.
GM did warn that they are out $1 billion because of tariffs months ago. Other companies like Target have also issued warnings. Trump isn't good for America. We are more divided than ever. Companies are starting to feel the effects of his economic policies. We will be in recession late next year or going into 2020.
Because they wish to continue sourcing goods made in china.
Why would they upset investors and unions, and take the payouts and profit sharing, and put that money to do 100% onshore manufacturing.
Harley, same thing. They came about 10 years too late with their new models. They are pumping out bikes that appeal to millennials now. They ignored an entire generation by focusing on catering to literally, a dying market, in the form of pumping out geezer glides with an asinine price tag.
The word is Complacency.
Corporatists don't want to spend the money if they can hoard it. They've grown complacent and don't want to change while the getting is good.
GMs issue has been poor upper management, and hideous body styles. Look at how they ruined Cadillac for example.
I never bought a car from them beyond Devilles, Eldorados, Fleetwood/Fleetwood Broughams, other folks buy their cars and complain about stupid little things like "interior feels cheap" etc etc
I always bought Chevy pickups. Until manufacturers stop appeasing the cookie cutter market and pump out V8 Rearwheel drive manual transmission cars. I'm not buying. Pickups it is. Until the 2019s came out. Well. Just may wind up buying a Hell Cat Challenger afterall.
I buy trucks because they're rear wheel drive. V8. And I use trucks for truck stuff.
Can't really put a dirt bike in a civic.
I'd rather spend 50k and build a custom 60s-80s C10 than buy a brand new hideous 2019. That thing is FUGLY.
It was GMs bad forecasting. People don't want sedans right now.
Quote:
Originally Posted by LordBalfor
Apparently Ford had bad forecasting too. It announced just a month or so ago that it was dropping all but 2 of it's cars.
Ken
Just like an ocean liner, these companies cannot change direction on a dime.
Considering the fluidity of the car market at this time in history, the future availability of fossil fuels, climate change and pollution, global markets, the public's wants and needs, advances in technology.....I would hate to try to predict what kind of vehicle will be popular 5-10 years from now.....and that is what automakers are faced with right now.
There are many pieces to the puzzle and no easy answers.
Just like an ocean liner, these companies cannot change direction on a dime.
Considering the fluidity of the car market at this time in history, the future availability of fossil fuels, climate change and pollution, global markets, the public's wants and needs, advances in technology.....I would hate to try to predict what kind of vehicle will be popular 5-10 years from now.....and that is what automakers are faced with right now.
There are many pieces to the puzzle and no easy answers.
I doubt very much the TRUE availability of fossil fuels will be a real concern. However, it is government's mandate of going electric that is the concern. So, you're right that is a big wild card right now. People want big Trucks, and SUV's, more, and more governments want us on mass transit, or in EV's. There is a HUGE disconnect between what the Market wants, and what cities, and some states want. There will eventually be a clash.
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