GM is laying off thousands of workers, closing three plants, and ending production of the Chevy Volt

Verge ^ | 11-26-2018 | Andrew Hawkins

[tcrlaf]

Amid flagging sales, General Motors confirmed on Monday that it will no longer make the plug-in hybrid Chevy Volt, ceasing production on March 1st, 2019. The news comes as part of a wider plan by GM to slash car production in North America and halt production of several low-selling brands. Trading on GM shares was briefly halted on the stock exchange early on Monday in anticipation of “major operational changes,” according to CNBC.

GM plans to “unallocate” three assembly plants — in Oshawa, Ontario; Detroit, Michigan; and Warren, Ohio — putting the future of those plants in doubt, Reuters reports.

The move will necessitate layoffs of salaried executive employees. “Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making,” GM said in a statement. An estimated 14,000 factory workers and white-collar employees stand to lose their jobs, according to The Associated Press.

[sphinx]

I was raised in a GM town, always bought GM products, was a small shareholder for many years (sold in time and made money), and would have stuck with GM through a legitimate bankruptcy. But the UAW bailout killed my brand loyalty. GM was not bailed out: the shareholders lost everything, the bondholders got pennies on the dollar, the secured bondholders were illegally looted, management was purged, the dealers were purged, the suppliers took a hit … and the UAW was made whole, with $50 billion in giveaways.

The parasite killed the host, and Obama paid off the parasite. So I will never buy another car built by the UAW until the union repays what it took. Since that will never happen ….

[discostu]

If there were that many preexisting orders they wouldn’t need to cancel it. Look at the chart in post 23, some of this stuff will still be getting made for a year. That’s just crappy management doing a bad job of filly a supply chain they don’t need and now have to burn through.

[ichabod1]

Just think your driverless car will always go exactly as fast as the law allows.

[ichabod1]

I don’t get it. I got a sedan because I wanted the ability to have whatever I put in the trunk to be out of sight. With the fold down seats I have the same room as an SUV or more. It was purely a personal preference. I can’t seen them going away. Others will make them. Or ‘SUV’s will just be sedans that ride higher.

[equaviator]

She’s “too cute to fail”!

[equaviator]

I hope you’re right, and I really resent the Silicon Valley attitude at GM here in Michigan. They’re engaged in their own brand of social engineering to bring about drastic changes in the corporate culture to include a very deep sense of “community”. Note to Governor-Elect Whitmer: Let Michigan be Michigan!

[xzins]

Fird is doing the same thing. New sales are something like only one third sedans and dropping.

The sedan plants are at 50% and less capacity, and that means they’re losing money on them.

[catnipman]

“Doesn’t that tell them the public does not want these hybrids?”

so-called hybrids are 100% gasoline internal-combustion powered vehicles ... they’re just exceptionally efficient vehicles because they use regenerative braking and engine control technology to turn the engine off instead of idling ...

[catnipman]

“someone i know just had a hybrid given to them, apparently this hybrid recharges whiel driving- no plug in necessary- why aren’t car manufacturers seeking to refine this technology instead of requiring expensive electric plug in recharguing?”

hybrid technology is already refined ... oh, and hybrids are 100% gasoline internal-combustion powered vehicles ... they’re just exceptionally efficient vehicles because they use regenerative braking and engine control technology to turn the engine off instead of idling ...

[catnipman]

“In my opinion autonomous vehicles will not survive First Contact with the American tort bar.”

yep ...

[catnipman]

crossover = fancy station wagon that costs twice as much as an actual station wagon ...

[Hot Tabasco]

some of this stuff will still be getting made for a year.

Some of that "STUFF" as you call it are parts which will be used for stockpiling then made available to dealerships when customers like you bring in your discontinued XYZ vehicle that needs a new transmission or whatever.........

[tcrlaf]

“A hybrid can save you about $900/yr in fuel costs. A couple of years of ownership will pay for the difference between a hybrid and a full gas model.”

Not at $2 a gallon gasoline.
But, I am 100& SURE the Democrats have a plan to “Fix” that.

[tcrlaf]

That “Strong Consumer Demand” was almost ALL Government using tax dollars to purchase them.

[1Old Pro]

The Volt was only produced to help satisfy fleet café standards, not because it made business sense or people wanted it.

This is what happens when inept politicians and environuts try to impose their wacked beliefs on businesses.

[ProtectOurFreedom]

Exactly right! That “Strong Consumer Demand” cracked me up. So strong now that they are killing it. Ha!

[catnipman]

I suspect the death of the Volt is going to have a domino effect on a whole bunch of other unprofitable obmamamobile pay-for-play EVs .... EVs were always a government mandated “fad” that was never really going to get off the ground ... once the artificial gasoline price increases under obama were nuked by Trump, there was not even a smidgen of an economic reason for anyone to want of these white elephants ... look for more announcements of EV models being discontinued by other manufactures ...

[Hot Tabasco]

If there were that many preexisting orders they wouldn’t need to cancel it.

I've worked in the Detroit auto industry my entire life and have found that the vast majority of people whose only knowledge of vehicles is what they buy and drive.

Every vehicle on the road today, when first introduced, took about 8 years from concept to full production. And every vehicle has a calculated life cycle which is contingent on buyer demand. As long as the demand continues, the auto company will continue to produce the car with additional changes and add on's to keep up with their competitor.

Once the demand for a specific style starts to wane, the auto companies shift their attention to the type of vehicle the public is more inclined to buy.

I'll use my own car for example, which is a 2016 Ford Focus. Ford has announce they will discontinue the Focus and the Fusion and other passenger cars with 2018 being the last years manufactured.

There was no out cry here when those articles were posted........

Check out this article from this past April..........

https://www.nbcnews.com/business/autos/ford-stop-making-all-passenger-cars-except-mustang-n869256

[tcrlaf]

NOBODY in the media dares to talk about the quarter billion dollar failure of the THINK! electric car debacle, that Obama played for press. They only built 100 cars, sold NONE, and gave a few dozen away to social orgs that immediately tried to sell them for peanuts.

The taxpayers got left holding the bag, as usual, but Obama got his propo, and is that not what is REALLY important??

[RegulatorCountry]

There are however examples of vehicles with a sort of built in floor for demand that continue on long after the product development cycle would have discontinued them. The tooling is amortized, the ad budget is practically nil, what changes are made are driven by government regulations if any regulatory changes, and corporate decisions on drivetrains. Prime example: the Ford Crown Victoria and stablemates Mercury Grand Marquis as well as Lincoln Town Car.