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UAW Attacks GM as Trump Signs “New” NAFTA Deal

Trump in Argentina for G20 Summit.

by on Nov.30, 2018

The leaders of Mexico, the United States and Canada sign the "new" NAFTA in Argentina.

The United Auto Workers renewed its attack on General Motors as leaders from the U.S., Mexico and Canada used the G20 Summit in Argentina for the back drop for officially signing a new North American Free Trade Agreement that was negotiated last summer but still must be approved by the U.S.

President Donald Trump joined the leaders of Canada and Mexico at a global meeting in Argentina for the signing of the deal, fulfilling a longstanding political promise with a deal he celebrated as a “groundbreaking achievement.”

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UAW President Gary Jones, however, said GM’s announcement of the closure of five of its factories in the U.S. demonstrates that the new trade pact does not go far enough in protecting the interest of workers in the U.S. (more…)

FCA Pledges $5.7B Investment in Italian Auto Plants

Plans call for new 500 EV and Alfa Romeo hybrid.

by on Nov.30, 2018

FCA CEO Mike Manley signed off on a $5.7 billion investment plan in the company's facilities in Italy.

Fiat Chrysler Automobiles said this week that its plants in Italy would return to full employment with a $5.7 billion investment in new cars and engine technology, including a fully electric version of the Fiat 500 city car and a plug-in hybrid Alfa Romeo compact utility vehicle.

The FCA announcement plans to mollify anxious union workers – and uneasy political factions in its home country – offer a sharp contrast to the tack taken by General Motors Co., which announced plans to close seven plants and eliminate 15,000 jobs.

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GM’s announcement angered union officials in the U.S. and Canada as well as figures from opposite end of the political spectrum, such as U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau. (more…)

Ford Cuts Production at Two Plants, Shifting Workers to Other Sites

Company moving workers to meet production needs.

by on Nov.29, 2018

Ford is cutting one shift at the Louisville Assembly Plant, but moving those workers to the Kentucky Truck Plant.

On the heels of General Motors’ announcement that it plans to shutter five plants in North America, Ford Motor Co. said it expects to reduce production at two key U.S. assembly plants by next spring.

However, mindful of the harsh political fallout that followed the GM announcement, including a series of angry tweets from President Donald Trump, Ford took pains to emphasize that workers displaced by the impending cuts at assembly plants in Louisville, Kentucky, and Flat Rock, Michigan, will be offered jobs at nearby Ford plants.

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No workers will be laid off during the changes, which are scheduled to take place next spring, Ford spokeswoman Kelli Felker stressed in an e-mail to TheDetroitBureau.com. (more…)

GM Selling Off Hotel Property to Raise Cash, Get Lean

Moody's gives thumbs up to the plan.

by on Nov.28, 2018

GM is looking to sell the hotel it owns in the Millender Center for $45 million.

In another step aimed at disposing of unneeded assets and raising cash, General Motors has confirmed it plans to sell off a hotel located directly across the street from its world headquarters in Detroit, which is now the midst of a real-estate boom.

The automaker said it intends to sell the 265-room Courtyard Marriott hotel that was built in 1985 as part of the mixed-use Millender Center complex on Jefferson Avenue and is linked to General Motors Riverfront headquarters in downtown Detroit by a covered footbridge.

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GM acquired the property years ago when Detroit was in the economic doldrums. However, downtown has undergone a major revival the past five years and the value of real estate has risen sharply, making it a propitious time to sell, GM said. (more…)

Trump Threatens General Motors With Economic Sanctions

President suggests EV credit could be revoked.

by on Nov.27, 2018

President Donald Trump suggested he would search for ways to eliminate government subsidies to General Motors.

With the benefit of a good night’s sleep, President Donald Trump once again addressed General Motors’ plans to realign its manufacturing operations in the U.S. and Canada.

He took to Twitter this afternoon to reveal how he plans to deal with the situation.

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“Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China,” he tweeted. (more…)

Trump Chides GM for Plant Closures, New Congresswoman Blames Trump

President says he's pressuring GM to reverse course.

by on Nov.26, 2018

President Donald Trump said he told GM CEO Mary Barra that the country has been "very good" to the automaker.

Last year, President Donald Trump encouraged employees living near General Motors’ Lordstown plant and other long-shuttered plants to hang in there despite the fact there was no reason to believe the industries in the region were planning to add jobs.

“They’re all coming back. They’re all coming back,” he told a crowd at rally in July 2017. The raucous crowd roared its approval and he added, “Don’t move. Don’t sell your house.”

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Today he found out he was wrong — again. (more…)

Mary Barra Continues Radical Reshaping of GM

No more business-as-usual.

by on Nov.26, 2018

GM CEO Mary Barra is leading the transformation of the company's manufacturing footprint.

For more than a century, General Motors defined the “old boys network,” and while it long made GM the largest and most powerful automaker on the planet, by 2009 it helped drive the automaker into bankruptcy.

It took a federal bailout to keep Detroit’s largest automaker alive. But it’s GM’s first woman chief executive – indeed, the first female CEO at any major carmaker – who is forcing the company to abandon its shopworn playbook.

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The latest evidence comes with the announcement on Monday that GM will shutter three North American assembly plants, as well as two powertrain facilities, while slashing 15% of its white-collar workforce. It’s all part of a move, according to Barra, that will see it shift away from the sort of cars and trucks it has been building for more than 100 years and focus on the electrified and autonomous vehicles many experts believe will dominate tomorrow’s transportation industry. (more…)

GM Closing Five Plants, Cutting 15,000 Workers

Company plans to close more plants in the future.

by on Nov.26, 2018

GM is closing three plants in the U.S. and Canada, including its Oshawa, Ontario facility as it transforms its manufacturing footprint.

General Motors, in a move likely to have a significant political impact, confirmed it is preparing to shut five plants in the U.S. and Canada as its restructures its operations across the globe.

GM Chairman and CEO Mary Barra told analysts the company plans to halt production of vehicles, among the them the Chevrolet Volt, Cruze and Impala, now built at plants in Detroit, Lordstown, Ohio, and Oshawa, Ontario. The company also plans to close two powertrain plants.

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None of the plants will have products allocated to them past the end of 2019, said Barra. As part of the unfolding restructuring of the company GM also plans to slash is salaried head count by 15% and cut its executive ranks by 25% and restructure its product development system, Barra said. (more…)

General Motors Shuttering Canadian Plant

Oshawa plant closure cuts 2,500 jobs.

by on Nov.26, 2018

GM has been pressing hard to keep production and demand in line, regularly cutting output of slow-selling models.

General Motors plans to shut down its massive Oshawa, Ontario plant as part of an ongoing series of actions by the company to prepare for the next sales downturn.

The company is looking to remake its manufacturing footprint with an eye toward more battery-electric vehicles, which the Oshawa plant currently doesn’t produce. Oshawa has been rumored to be on the cutting block for some time now as the company has struggled to find products for the sprawling facility.

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The other plant considered to be in danger as part of this reorganization is GM’s Lordstown, Ohio site. The company has cut production there repeatedly, moving from three shifts down to one shift now with 3,000 employees. The only thing keeping that site afloat is that it produces the Chevy Cruze small sedan.  (more…)

GM Looking at White Collar Layoffs Due to Low Buyout Acceptance

Company falling well short of hoped-for 7,000 early retirements.

by on Nov.20, 2018

General Motors is offering buyouts to thousands of employees as it seeks to streamline its North American operations.

We can do this the easy way or we can do this the hard way — so what’s going to be?

That was the question essentially posed to thousands of General Motors Co. white collar employees by the company’s management, looking for at least 7,000 to accept an early retirement buyout. The automaker is looking to trim salaried workers as a proactive cost cutting measure.

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Those selected to participate in the plan have until noon Monday to decide; however, early reports suggest the company is going to get a little over half of its target, which means that GM likely will be laying off people in the near future to get that number. (more…)