GM to Close Factories for Nine Weeks This Summer

Robert Farago
by Robert Farago

Huh? Is there anyone inside or outside of GM who seriously believes that all hell will break loose on or around June first, the federal deadline for the zombie automaker’s “restructuring”? At this point, GM planning for a summer production shutdown is roughly akin to a customer readying a garage charge point for his/her plug-in hybrid gas – electric Chevy Volt. This is the company that’s expected to kill somewhere between two and six brands. And yet, there it is, via The Detroit News: “General Motors Corp. is expected to announce Friday it’s cutting about 170,000 vehicles from its planned production this year, closing factories for as long as nine weeks this summer as the automaker works to dramatically toughen its restructuring plan before a June 1 government deadline.” Shouldn’t that be “melodramatically toughen”? If you want real drama, wait ’til the Presidential Task Force on Automobiles pulls the plug (or doubles down) on Chrysler. Then we’ll see whether or not an ocean of blood on the carpet is enough to convince GM’s stakeholders to let Uncle Sam add their scalp to his collection. I mean, take a haircut.

Robert Farago
Robert Farago

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  • JK43123 JK43123 on Apr 23, 2009
    I still say the best option is a car crusher installed at the end of each assembly line. Hey, our government has been known to pay farmers not to farm, so now that the feds run GM, why not? John
  • Psarhjinian Psarhjinian on Apr 23, 2009
    Wake the hell up, a job is a job. In this economy you are going to have to make concessions to stay employed. Here's the counterpoint: since GM actually has lower operating costs than Toyota, why are GM workers being asked to subsidize the incredibly ineptness that is GM management? The unions need to get the message of executive incompetence out, or they're downfall will be the start of wholesale wage erosion. Instead of swallowing management's excuses and marketing schtick, parroting points like currency manipulation, "only assembled here", "profits go to Japan" and the like, perhaps they ought to take out a PR campaign something like the following: "Workers brought GM some of the highest-quality factories in the world. Workers made Chrysler the most profitable car company in the world. Workers, both union and not, have in fact already borne the brunt of cost cutting. What has management done? GM and Chrysler management has systematically failed to come up with products that people want to buy, made hay on high-margin products that couldn't be sold in an economic collapse, cost-cut quality out of existence, flushed money down the toilet on failed mergers, lost more than half the market to foriegn competition and let their competitors completely outflank them during the fuel crisis. All the while pocketing multi-million-dollar salaries and bonuses. So why are the unions being asked to cut jobs and salaries? Talk to your representative about wholesale management changes at GM and Chrysler."
  • Anonymous Anonymous on Apr 24, 2009

    @psarhjinian Lots of blame to go around. Why should the taxpayers pay for this? The CAW is fighting to retain their free massages.

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