Reply With Quote
How nice of them.The union agreed to concessions that will allow GM to turn a profit on the vehicle...
GM to Build Small Cars in Michigan
By TESS STYNES
¶ General Motors Corp. chose two sites in Michigan to build small, fuel-efficient cars, and is in negotiations with state and local government officials about economic incentives.
¶ The auto maker, which is undergoing reorganization in bankruptcy court, had considered sites in Michigan, Tennessee and Wisconsin. The U.S. government is slated to own 60% of the company after it emerges from bankruptcy.
¶ GM selected an assembly plant in Orion Township, Mich., and a metal-stamping facility in Pontiac, Mich., which are projected to employ about 1,400 workers if an agreement is reached.
¶ The plans fall under a tentative deal GM reached in April with the United Auto Workers. The union agreed to concessions that will allow GM to turn a profit on the vehicle, something that previously had been difficult in the U.S. with small cars because of relatively high labor costs. In return, GM agreed to build the model in the U.S. rather than China as originally planned.
¶ The Orion assembly plant is expected to turn out a combined 160,000 small and compact vehicles a year. While a final decision hasn't been made on timing, retooling of the plants could begin late next year, with production starting in 2011, the company said.
¶ GM plans to spend upwards of $700 million to produce the vehicles.
¶ Two other GM sites, in Spring Hill, Tenn., and Janesville, Wis., also were considered. The Spring Hill plant may be used if demand requires extra capacity, GM said.
Chrysler LLC, which also reorganized in bankruptcy, has merged its assets with Italian auto maker Fiat SpA, which plans to make more small cars for the U.S. market as part of their combination.
Last edited by Winehole23; 06-26-2009 at 01:51 PM.
How nice of them.The union agreed to concessions that will allow GM to turn a profit on the vehicle...
If they hadn't, China would be building GM's new cars, so it was a no-brainer.
Oh the UAW made some token concessions, but how do they know those concessions were enough to turn a profit when they're not even making the cars yet? They have no idea how much the consumer is willing to pay for them.
True.
At least they made some concessions, instead of just demanding they continue to get paid for nothing...
Oh the UAW made some token concessions, but how do they know those concessions were enough to turn a profit when they're not even making the cars yet? They have no idea how much the consumer is willing to pay for them.
Unions are such a ridiculous thing nowadays.
Most unions are.
I belong to a union, and I dislike my union for different reasons. They actually won't let my employer pay my job field as much as my employer wants to! I was making 6 figures in my last job, but was laid off. My current employer has the problem with Electrical and Mechanical techs leaving for higher paying jobs, but the union wont let them pay us more! It's an unusual situation, but where I work, less than 5% of us are technicians and it's a union for the operators of the equipment I maintain. We already make a bit more than the operators, and the union cannot doesn't even try to get the support of the operators to pay us market wages. My wages are still only about 60% of my last job.
Very unusual situation. I, however, have no plans to leave. I can deal with the lower income for the job security. I have to really up to be let go. I'll be a triple dipper. Social Security, TSP, and Pension. l and I can retire in 8 years! I'll probably stick it out until 2027 for a better pension percentage, and larger TSP. I'll then have 30 years government service.
Actually, as Boehner noted in the new Crap and Trade law, it specifies emission standards for new vehicles for purchases, which will curiously coincide with specs on GM's new toy cars...
Oh the UAW made some token concessions, but how do they know those concessions were enough to turn a profit when they're not even making the cars yet? They have no idea how much the consumer is willing to pay for them.
Congratulations, congress. You just put the only surviving US automaker out of business.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
