Posted on 11/30/2018 5:59:21 AM PST by george76
General Motors Co on Monday pulled the plug on the Chevrolet Volt hybrid and the Detroit-Hamtramck Assembly plant that builds it, both examples of a costly gamble that is not paying off.
GM’s widely touted factory of the future, forced on a town desperate for jobs and hailed decades later by former resident Barack Obama, is set to wind down over the next few years, leaving beleaguered Hamtramck wondering what happened.
Detroit Mayor Mike Duggan said at a news conference Monday that he told GM chief executive Mary Barra Monday that “we moved thousands of people out of that neighborhood ... to create that assembly plant and I felt that the city of Detroit deserved more consideration.”
The Detroit-Hamtramck plant stands on 465 acres of land that was once a neighborhood known as “Poletown.”
In 1981, the Michigan Supreme Court approved a decision to allow Detroit to tear down up to 1,500 homes, more than 140 businesses, a hospital and six churches to build the $500 million plant. The Detroit News reported 4,200 people lost their homes as a result.
GM convinced officials in the cities of Detroit and Hamtramck, the state of Michigan - and ultimately the state’s highest court - to use eminent domain, a controversial process in which government seizes private land.
Karen Majewski, the mayor of Hamtramck, told Reuters that the GM plant is one of the largest contributors to local property taxes. Empty, she worried the factory will discourage other investments.
“They destroyed homes and churches and local businesses, all to build that plant,” Majewski said. “Now that the plant is going to close, people will wonder why that neighborhood had to be sacrificed in the first place.”
(Excerpt) Read more at reuters.com ...
Okay help me out here. GM is ceasing production of the Volt, their premier hybrid vehicle, and a pretty good one at that. It’s very competitive with the much more expensive Tesla. At the same time GM’s long term goal is to stop production of all fossil fuel powered vehicles and move solely to electrics by I believe 2030. Anybody else see a disconnect here?
I’m thinking the Unions killed off these car plants. It isn’t just the wages which are too high for the skill level required; it’s the pension and benefits. Yes; the Unions did renegotiate with GM for a lower wage rate and less benefits - probably less pension or a 401K option but it probably wasn’t enough to offset all the pension liability which may one day end up killing GM altogether. Maybe Ford and Dodge too unless a lower pay rate can be agreed on.
It was a ponzi scheme and I think we all know what happens to ponzi schemes when it’s time to pay the piper.
The government has been able to get away with not using Social Security funds paid in for what it was meant for because the gov can print more money but someday it too will have to pay the piper.
And yet Ford and Chrysler, with the same unions, aren't having this problem. Could it be that it isn't unions but is instead bad management decisions?
The workers don't decide what to buy. Management makes product decisions on what to make. Management designs the products. Management markets the products. These plants are closing because they are producing a product and the demand for it isn't there. Ford and Chrysler saw this coming and planned their lines accordingly.
Very possible. It surely did not get burned up or dumped into the ocean.
Probably a combination of both. Ford and Chrysler may indeed be having the same problems but GM got in bed with the dems and took the bailout when Ford didn't so that in itself proves GM has made some bad management decisions.
I've seen what happens when government dictates a minimum wage higher than what the market can bear or the employee deserves. Lay offs and downsizing with the higher skilled employees doing double duty filling in for the laid off employees. The socialist Bernie Sanders wants to make $15 the minimum wage nationwide. All this will do is make many things unaffordable to those on a low income and do nothing for those who had a wage increase. Probably would cause their lay off and a recession.
“Anybody else see a disconnect here?”
The Volt was electric only for about 35 miles than a gas engine kicked in to power the electric motor. The Chevy Bolt I believe is 100% electric. I prefer the Volt method since there is no range anxiety but the idea didn’t take off, at least for Chevy. Toyota Prius is an example of a gas / hybrid that has sold well with an 11.3 gallon tank and 600 mile range.
“Anybody else see a disconnect here?”
The Volt was electric only for about 35 miles than a gas engine kicked in to power the electric motor. The Chevy Bolt I believe is 100% electric. I prefer the Volt method since there is no range anxiety but the idea didn’t take off, at least for Chevy. Toyota Prius is an example of a gas / hybrid that has sold well with an 11.3 gallon tank and 600 mile range.
DRUDGE already has a link to The Hill where a GM Employee blames Trump for the closure because he gave the Workers false hope.
Amazing what liberal politicians can do when they are motivated. If a conservative tried that anywhere. . . .
I know from direct personal experience.
Since GM redesigned the Volt so it looks like a real Car, we would have considered buying one to replace my Wife’s Kia.
I’m not a big fan of all electric Vehicles. The redesigned Volt fills a nice niche. Too bad it didn’t sell enough to keep the Plant open.
Wonder how the Fords have treated you?
I was all Ford until about 2005, when they started having little stuff go wrong.
My experience with Dodges: the engines are the bomb, but the electronics/dashboard/details can make you crazy.
Fiat, not Dodge.
There are no guarantees in life.
Good point!
“Didn’t they also take part in the big auto bailout touted by Obama? “
Someone out there correct me if I am wrong. But GM sold out to the unions per the govt bail out which screwed many investors in the process. There was no choice, the deal was made between the obama administration and the unions.
Chrysler sold out to Fiat. Part of the deal was that they separate Dodge trucks from Chrysler and call them Ram. Chrysler may have gotten some govt incentives, but not the wholesale screw job GM gave the country by hooking up with unions.
As a kid I liked Fiat cars, there were many in Ethiopia when I lived there. So Dodge being owned by Fiat is not a bother.
“Wonder how the Fords have treated you?”
I felt I had no choice for what we do with trucks, which is haul a camper. I hated Ram styling and would not have a Chevy due to the obama screw job, even if one were given to me.
We started with a 2011 F150 and it was fairly reliable with more power than we needed.
We got a 2018 last April and have over 20,000 miles on it. Love the 10 speed and the 370 HP V8. It’s very comfortable.
The 2011 developed rear end noise. The 2018 just got it. With the 2011 it was pinion bearings. Haven’t taken the 2018 in yet. If it does in fact have gear or bearing trouble, I might go for a 2019 Ram after it’s fixed.
The dashboard/electronics do take some getting used to.
I had a 2008 that developed a weird intermittent howl that didn’t sound engine-related...I always figured it was something transmission-caused.
Of course everytime I took a dealer mechanic out there was nothing.
I end up selling it ‘cause it was just too damned loaded to drive, leather, sunroof, every option. Found I could more easily beat the crap out of a ten-year-old Tundra.
Resident of the White Hut, not Hamtramck.
If anyone is interesting in seeing a chart of
auto Mfgrs and state click the following link.
US auto mfgrs
https://en.wikipedia.org/wiki/List_of_automobiles_manufactured_in_the_United_States
Surprise suprise.
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