Big Changes at General Motors Today

Might Just Equate to Improvements in the Auto Industry Later

BY NIKKI ROBERT

 

By now, almost every living soul in the country has heard that General Motors is due to end production at five of its major plants across North America (U.S. and Canada). This also means killing off multiple passenger cars and taking out 15% of salaried jobs in hopes of cost-cutting. This plan is designed to, obviously, increase profits and also to calibrate to America’s developing tastes in automobile design.

Some say this will end all of General Motors production completely by the end of 2019 at their Lordstown Assembly plant in northeast Ohio, the Detroit-Hamtramck Assembly plant in southeast Michigan, the Baltimore Operations parts plant on the east coast of Maryland, the Oshawa Assembly plant in Ontario, and, undoubtedly, the Warren Transmission Operations plant in southeast Michigan. This could hit the Midwest very hard when it comes to vehicles. If you have an inkling that the Impala will survive, you probably need to re-evaluate your thinking process.

These specific plants (which happen to be doomed for death) point heavily toward passenger cars (SUV’s, crossovers and pickup trucks). Along with this major change in your ability for freedom to purchase within the General Motors world, the company will also be removing the Chevy Volt, Buick LaCrosse, Cadillac CT6, Chevy Cruze and the Cadillac XTS. Wakeup call!

As a car dealer there is little question as to why this decision is being made. It’s obvious the sales of these specific models were suffering immensely and have for quite some time. Some believe that the only reason these cars continued to be manufactured here as long as they were, was to support the jobs of thousands of GM workers. Unfortunately, now, saving these lost sales just seems unsustainable for the company that’s already virtually gone under just a decade ago. A cut of 15% of jobs may not seem like a lot, but, 1,500 employees at the Detroit plant, 1,600 at the Lordstown factory and 2,500 in Oshawa… well, that sounds more “in your face” and real for the families who will be affected by this major change. A brighter note for some of the workers is that General Motors is offering nearly half of these workers the opportunity to relocate to another GM plant.

A brighter note for some of the workers is that General Motors is offering nearly half of them an opportunity to relocate.

 

So, let’s talk about what really matters; how will this affect you? Technically, it really won’t have a direct impact on most of us unless, of course, you are close with someone who works at one of these plants. The reason it won’t affect the majority of us is largely due to the existing robust economy. Of course, as an auto dealer there’s the collateral debris of not being able to provide a crazy soccer mom with a new “Chevy Cruze”, but that’s on you.

The sad truth is that none of us want to see any American company close any of its plants. And certainly none of us want to see hard working Americans, who toil daily supporting their families, lose their jobs, but there really is no changing this one. Not even the President could help General Motors out of this mess.

 

So, what now? Well, we look for the silver lining. This is America, we still have free enterprise and like always we will search for greater opportunities – opportunities for General Motors to grow in other areas such as newly designed vehicles, new plants opening up, new innovations and products, or for other savvy companies to come in and fill the void.

Let’s hope and believe that there will soon be a bigger, better mouse trap on the horizon and maybe even a new and enhanced vision for the automobile industry.