My take on saving GM, risky.
We are looking at 20,000 people losing their jobs, permanently. There will be permanent layoffs, these folks are gone for good. We are looking at 12 plants to close permanently. No one is calling you back for work to rev up the plant, it is gone. We are looking at 3 plants idle. What does that mean? To me, it means that if things look good down the road that these plants can come back.
Today is a sad day. Today is a happy day.
Sad because a name that everyone in America knows, General Motors, is no more. Happy day because the government stepped in to save GM and Chrysler, by saving this industry came the one thing this country invented, the automobile.
We all can argue about GM's lack of vision, clarity, along with their greed on producing gas guzzling cars/trucks only to be hit with gas rocketing sky high and the consumer letting these cars/trucks go to the wayside. All of the above is true, but the major factor is the poor management of GM that got them here today.
We all can argue about the Obama Administration stepping in and owning 60% of GM and forcing restructuring, retooling, etc. This argument is valid, but remember it was the automotive industry that came running to the government for a bailout, in doing so they have no choice but to do what the Obama Administration says if they want the money.
My take, this is all risky. We have propped up banks and are still propping them up. We have propped up AIG and they are not out of the woods, yet. Now we are propping up GM. It is easy to shake that finger, but many of us know people that work in the automotive industry and this is their life. This is it for them.
I don't know if this will work. Me, personally, I would not purchase a GM or Chrysler car at this time. My attitude is the wait and see. Wait and see if they will produce fuel efficient cars. Wait and see if they produce affordable cars. Wait and see if they will even be around in the very near future. Just wait and see.
President Obama has assumed a platter of headaches, each being put on his plate. If GM does not shake out by 2012 in the right direction, he owns it, and the Republicans will continue to let him know this. (even though the Republicans said send them to bankruptcy from the beginning)
Finally, read what Michael Moore has to say about the closing of General Motors, as we know it, here. Worth a read.
GM Plants to Close
Assembly plants scheduled to close:
—Wilmington, Del. Scheduled to close in July. Cars produced at the plant include the Pontiac Solstice, the Pontiac Solstice Coupe, the Saturn Sky and the Opel GT.
—Pontiac, Mich. Set to shut its doors in October. Produces the GMC Sierra, a sports utility vehicle, and the Chevrolet Silverado.
Assembly plants expected to be idled:
—Orion, Mich. Assembles Chevrolet Malibu and the Pontiac G6. Will halt production in September.
—Spring Hill, Tenn. Assembles Chevrolet Traverse. Will halt production in November.
Two new stamping plants, which mold sheets of steel into different auto parts, are set to close permanently:
—Mansfield, Ohio. Will close in June 2010.
—Indianapolis. Will close in December of 2011.
One stamping plant will be idled:
—Pontiac Metal in Pontiac, Mich. Expected to shut down at least temporarily in December of 2010.
Five plants where powertrain systems are produced are scheduled to close:
—Livonia Engine in Livonia, Mich. Will close in June 2010.
—Four other powertrain plants will close in December 2010: Flint North Components in Flint, Mich.; GM’s Willow Run Site between Ypsilanti and Belleville, Mich.; Parma Components in Parma, Ohio (near Cleveland) and Fredericksburg (Va.) Components.
Three service and parts warehouses and parts distribution centers are also on the closure list:
—Warehouses in Boston, Jacksonville, Fla. and Columbus, Ohio. Set to close on the last day of this year.
Monday, June 1, 2009
My take on saving GM, risky.