GM press release regarding idling of plants in N America

[RedEarth]

FOR RELEASE: 2008-12-12

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.

http://angrybear.blogspot.com/2008/12/gm-press-release.html

[Idealism]

1. I see a lot of trucks and SUVs being cut

Smart business move

[gizmo1979]

10. The Hybrids are on that list too.

It's not a good move if 100000 people are out of work.

[Idealism]

11. Not as many as trucks/suvs

And they aren't firing 100,000 workers, they are just telling them not to come to work for half of the first quarter to cut costs, they will be paid still I believe.

[Diane R]

2. Can I ask why none of those plants are in the western half of the U.S?

I'm for the bailout. I support American workers. But why don't any western states get those large manufacturing jobs?

[GrizzlyMan]

3. Why is GM making cars in Mexico and Canada?

I've heard so many complaints about those of us who won't "buy 'Merican" cars and yet these people's corporate masters outsource jobs to other countries.

Tisk tisk.

[kirby]

4. What took them so long?

I dont understand. The Big 3 said that this year they expected 10 million units versus 17 million units last year. Isnt that a 41% reduction? So how is this unexpected?

[proud patriot]

5. why cut production of the hybrids?

I don't get that .

[JVS]

8. I can think of several possible reasons, but it's really just speculation

1) It might be that nothing is selling, not even hybrids
2) Maybe GM is trying to scare the bejeezus out of America. A producer's strike, if you will.
3) Maybe shutting down the bulk of their lines makes it inefficient to keep their transportation, parts, logistics, or some other kind of supply network up and running

[RedEarth]

9. here's an article on hybird sales... Green hits red light with cash-strapped consumers

LOS ANGELES/SAN FRANCISCO, Dec 12 (Reuters) - U.S. consumers' enthusiasm for all things clean and green is being overshadowed by their urgent need for a different kind of green -- the one that pays the mortgage and puts food on the table.

,,,,,,,

With gas prices now below $2 a gallon, that payback looks much farther off than when prices soared to more than $4 a gallon last summer. Sales of hybrid cars and trucks fell 53 percent in November, according to Autodata Corp, a sharper drop than the 37 percent decline seen industrywide. Toyota Motor Corp's (7203.T: Quote, Profile, Research, Stock Buzz) Prius made up more than half of total hybrid sales, though Prius sales were also down by nearly half.

Underscoring consumers' hesitance on hybrids, Toyota recently leased 23 acres of space at Southern California's Long Beach port to store thousands of cars, including Prius hybrids, that dealerships have not been able to take on.

http://www.reuters.com/article/marketsNews/idUSN1241093720081212

[proud patriot]

12. that makes sense

[OnceUponTimeOnTheNet]

6. mark for s.o. to read. nt k&r

[TomClash]

7. Merry Christmas!

Your job is idling!