GM to close several plants
It looks like GM is finally doing some things to get its North American over-capacity under control. This plan is expected to save GM $7 billion by the end of 2006. The plan includes closing several final assembly plants as well as several parts manufacturing plants.
Say what you will, but a significant portion of GM's (as well as Chrysler's and Ford's) production (and subsequent incentives) is driven, not by demand in the market, but by a financial need to keep the UAW workers working rather than paying a large portion of their salaries even if a plant is idle. It is cheaper to put thousands in incentives on the product than to idle the workers and get no revenue for their pay.
Closing some plants permanently is going to be quite painful both to the workers, salaried and union, but with current moves to make plants more flexible (able to build more than one model or platform, and make it much easier to keep plants at 100% of their capacity) - this should ultimately be a good thing for GM and definitely for the future of the remaining plants, workers, and the company.
The plants that are closing, what they currently build, and when they are scheduled to shut their doors per this plan are:
GM will close these stamping and powertrain plants:
GM also will reduce production at these facilities:
Good luck GM. Let's hope your upcoming product makes this the last time you need to scale back like this.
Say what you will, but a significant portion of GM's (as well as Chrysler's and Ford's) production (and subsequent incentives) is driven, not by demand in the market, but by a financial need to keep the UAW workers working rather than paying a large portion of their salaries even if a plant is idle. It is cheaper to put thousands in incentives on the product than to idle the workers and get no revenue for their pay.
Closing some plants permanently is going to be quite painful both to the workers, salaried and union, but with current moves to make plants more flexible (able to build more than one model or platform, and make it much easier to keep plants at 100% of their capacity) - this should ultimately be a good thing for GM and definitely for the future of the remaining plants, workers, and the company.
The plants that are closing, what they currently build, and when they are scheduled to shut their doors per this plan are:
- Oklahoma City. 7-seat versions of Buick Rainier, Chevy Trailblazer, GMC Envoy, and Isuzu Ascender. It will close in early 2006. Production will likely shift to Moraine, Ohio - which currently builds the 5-seat variants.
- Lansing Craft Centre in Lansing, Mich. Chevy SSR. It will close in mid-2006. This may spell the end for the hot-rod, retro, convertible pickup.
- The Doraville, Ga. Buick Terraza, Chevy Uplander, Pontiac Montana SV6, and Saturn Relay. It will close in 2008. Production is expected to shift to a plant currently under construction in Delta Township, outside Lansing, MI.
- The Oshawa, Ontario, car plant No. 2 will close in 2008. It builds the Buick LaCrosse and Pontiac Grand Prix. Replacements for these cars will likely be build in Oshawa plant #1 or another GM plant.
GM will close these stamping and powertrain plants:
- The Lansing, Mich., stamping plant will be closed in 2006.
- The Pittsburgh stamping plant will be closed in 2007.
- The St. Catharines, Ontario, Street West powertrain parts plant will be closed in 2008.
- The Flint North plant in Flint, Mich., which builds the 3.8-liter V-6 engine, will close in 2008.
GM also will reduce production at these facilities:
- Line No. 1 of the Saturn plant in Spring Hill, Tenn., will be shut down at the end of next year. This line builds the Saturn ION, its replacement will be build alongside the Chevy Cobalt at the Lordstown, Ohio plant.
- The third shift at the Oshawa, Ontario, car plant No. 1 will be dropped in the middle of next year. This plant builds the Chevy Impala and Monte Carlo.
- The third shift at the Moraine, Ohio, truck plant will be cut in 2006. Moraine builds the Buick Rainier, Chevy Trailblazer, GMC Envoy, Isuzu Ascender (once production ends in Oklahoma City, and the Saab 9-7.
Good luck GM. Let's hope your upcoming product makes this the last time you need to scale back like this.
Production dates for the Jeep Compass and Patriot
Allpar.com is reporting that the Jeep Compass and Patriot not only are going into production (surprising just about no one) but also when they are expected to start being built.Both are based on the new chassis co-developed with Mitsubishi for use in the new Dodge Caliber small cross-over/wagon/thing, the Mitsubishi Lancer/EVO and Outlander, as well as the next PT Cruiser.
Compass is a sportier, rally-car inspired, non-Trail Rated Jeep (one of the first non-Trail Rated Jeeps, but likely not the last).The Patriot looks every bit like a resurection of the classic Cherokee, in a slightly smaller package. It kind of makes you wonder, with rumors of an upcoming Jeep Wrangler 4-door, if the Liberty's days are numbered.
Compass is expected to enter production in May 2006 with the Patriot ramping up in October 2006.
Prices are expected to be range from the high-teens to low-20's.
$100,000 Cadillac?
$100,000 Cadillac? I bet you never thought you'd see the day.
However, it's not the planned ultra-luxury sedan that Bob Lutz wants so badly...in this case it is the V-series version of the XLR roadster. It's MSRP is $100,000 including destination (I'd certainly hope!).
The XLR is the retractable hard-top convertible, based on the same chassis as the C6 Corvette. In it's normal trim, it is powered by a 4.6l Northstar V-8 pushing 320hp through a rear-mounted 6-speed automatic.
The XLR-V uses a supercharged 4.4l version of the Northstar that puts out 443hp. Also featured on the XLR-V is an upgraded interior with Zingana wood trim.
Fuel Economy
Welcome to my newest blog. I decided to spin this off when I started wanting to post a bit about the auto industry but it didn't fit the charter of my more politically minded other blog...
This is the post that got me thinking I needed a second blog...enjoy.
--------------------------
Let me start by saying this as clearly as I can...I am a car guy.
I eat, breathe, and live automobiles. Nothing brings me more joy than a well executed car - whether that be from a spirited drive down a curvy back-road, taking an inordinate amount of time to wash, polish, and otherwise obsess over every contour and finish, or even just dreaming of cars I'd love to drive and likely never will.
As a self-avowed automotive enthusiast, I fully understand the need for all types of vehicles, big and small, frugal and utilitarian. I don't villify the SUV just because I have no need for one (note, some of the links I list below don't necessarily take this stance) because I understand that many folks have legitimate need for them. I might curse, like most of us in cars, when my view is blocked by these large wagons - especially when a 7-seat monster is being driven to work by a single person - but I certainly won't say they should give up their vehicle if it brings them joy.
I don't hold hybrids, electrics, or fuel-cell cars on a pedestal as the end-all or certain fix for our environmental woes. I'm sure, by now we've all seen the reports that you would have to own a hybrid for 10 years or more, even with $3 a gallon gas, to recoup the extra cost... Of course, I think these articles miss the point. A truer measure would be to talk about not only the financial cost, but the environmental one as well. Using less gas has it's own benefit in reduced impact on the earth (assuming we can quantify the environmental impact of the extra technology that makes hybrids possible - batteries and the like).
I think the real lesson here is to think. Think about what you really need. Think about the costs to you, your community, and your fellow drivers for choosing a specific vehicle. Once you feel you really understand all sides...then buy what makes you happy.
I know I will.
Until next time...
Scott K (seriously eyeing the Saturn SKY as my next car)
Links
Bankrate.com - Is a hybrid car good for your wallet?
MotherEarthNews.com article on high efficiency vehicles
The Grinning Planet - The SUV Problem -- Hating Them is too Simplistic
About.com - Pro SUV - Reasons You Should Own a SUV
This is the post that got me thinking I needed a second blog...enjoy.
--------------------------
Let me start by saying this as clearly as I can...I am a car guy.
I eat, breathe, and live automobiles. Nothing brings me more joy than a well executed car - whether that be from a spirited drive down a curvy back-road, taking an inordinate amount of time to wash, polish, and otherwise obsess over every contour and finish, or even just dreaming of cars I'd love to drive and likely never will.
As a self-avowed automotive enthusiast, I fully understand the need for all types of vehicles, big and small, frugal and utilitarian. I don't villify the SUV just because I have no need for one (note, some of the links I list below don't necessarily take this stance) because I understand that many folks have legitimate need for them. I might curse, like most of us in cars, when my view is blocked by these large wagons - especially when a 7-seat monster is being driven to work by a single person - but I certainly won't say they should give up their vehicle if it brings them joy.
I don't hold hybrids, electrics, or fuel-cell cars on a pedestal as the end-all or certain fix for our environmental woes. I'm sure, by now we've all seen the reports that you would have to own a hybrid for 10 years or more, even with $3 a gallon gas, to recoup the extra cost... Of course, I think these articles miss the point. A truer measure would be to talk about not only the financial cost, but the environmental one as well. Using less gas has it's own benefit in reduced impact on the earth (assuming we can quantify the environmental impact of the extra technology that makes hybrids possible - batteries and the like).
I think the real lesson here is to think. Think about what you really need. Think about the costs to you, your community, and your fellow drivers for choosing a specific vehicle. Once you feel you really understand all sides...then buy what makes you happy.
I know I will.
Until next time...
Scott K (seriously eyeing the Saturn SKY as my next car)
Links
Bankrate.com - Is a hybrid car good for your wallet?
MotherEarthNews.com article on high efficiency vehicles
The Grinning Planet - The SUV Problem -- Hating Them is too Simplistic
About.com - Pro SUV - Reasons You Should Own a SUV