In their best-case scenario, Ford and GM would already be waiting anxiously by the mailbox for their federal bailout checks. Instead, it’s back to the drawing board to try to come up with enough cash to survive until December 8. Plus they still have to convince Congress that they have some kind of plan to survive beyond waiting anxiously by said mailbox. Accordingly, GM and Ford are announcing another round of cut-and-shuffle. Ford will close its Chicago Taurus/TaurusX/Sable/MKS plant for the weeks of Dec. 15 and 22, and its Flat Rock, MI Mustang/Mazda6 plant for the week of Dec. 22. According to Automotive News [sub], “the only Ford assembly operations scheduled to run the week of Dec. 22 are a van plant in Avon Lake, Ohio, an F-150 pickup production line in Kansas City, Mo. and an F-150 plant in Dearborn, Mich.” Meanwhile, GM will close the Impala plant in Oshawa, Ont. and the Lordstown, OH Cobalt/G5 plant from Jan. 12 to Jan. 20. Automotive News [sub] reports that GM will also shut down its Orion Township, MI Malibu/G6 plant from Jan. 5 to Jan. 12. GM’s Kansas City, KS Aura/LaCrosse plant will be closed Dec. 23-Jan. 20, and a planned week of downtime there has been moved up to Jan. 12 from Jan. 26. The permanent closure of GM’s Oshawa, Ont. truck plant has also been moved up, from July to May 14.
Buckle up, this is going to be a bumpy ride…
I hope the plan revolves around proactivity – not reactive production cuts. That’s what Congress is really after. A viable plan looks more than 3 months out. It looks 3 years out and more.
They need to get it through their thick skulls that product plans, productivity plans, robust business structure (ahem: kill zombie brands), cost containment, and a clear and quantifiable end to ridiculous labor contracts are what will sell. More importantly – how will they position themselves to be more agile in the face of highly uncertain economic times (that don’t appear will end anytime soon).
Ambiguity will not fly. Mullaly’s testimony wasn’t half bad, nor was Nardelli’s, but GM – being the focus of the room – had squat.
I don’t believe politicos are that skillful in business matters. Most of them come from mediocre law schools, and not very good at anything, but collecting campaign contributions in exchange for favors (tax dollars).
Politicos are just looking for some promise of change, vague enough and not necessarily kept. Look at the presidential campaign as an example. Once they get those, the coffers will open.
I am sure that congress is dying to give these scoundrels our tax money. All they have to do is ‘act humble’ and come out with some kind of plan. It doesn’t have to be based in reality but must be something congress can put their stamp on as ‘realistic’. Then Nancy and her crew can hold a press conference and announce that they have ‘saved detroit’ from a fate worse than death. I hope I am completely wrong in this statement. Really!
Politicos are just looking for some promise of change, vague enough and not necessarily kept. Look at the presidential campaign as an example. Once they get those, the coffers will open.
B.S. Politicos may not be the smartest people in the world, but they’re not going to hand out $25,000,000,000 to an auto company that’s lost more than half its customers in the past three decades with “Yes, sir, we’ve definitely got a plan! We won’t show it to you, but we’ve got it! Definitely nothing behind the table here!”
New Mexico Senator Udall, for example, was against the bank bailout. He’s not going to change that vote. And he’s a Democrat.
Democrats don’t really want to give them the money because the Big Three have made themselves look like anti-environmentalist pigs since Toyota unveiled the Prius. (What’s that about rich people not caring about the environment?) Their only interest in GM is in the well-being of its workers. Republicans don’t want to bail out companies, period. Sorry, but I think this bailout is going to deadlock till there’s nothing left to bail out.
Also: Something Awful imagery. Neato.
GM’s Kansas City, KS plant makes the Malibu and the Aura. The Lacrosse is not produced in Kansas City.
Yeah, the LaCrosse is the Impala’s roomie. Sales of Buick’s whipping boy have been steadily collapsing for a few years now anyway. GM probably has enough on hand already to see it through 2009.
The Dem’s are going to give them the money.
They owe the UAW and then the Big 3 can handout 100k retirement packages to all the retiring 48 and 50 year old workers.
One shouldn’t read too much into the shutting down of plants during the holiday season. It is SOP to reduce production around this time of year both to allow for vacation time for the workers and to slow down the influx of new model year vehicles to allow dealers to rid themselves of the remaining current model year vehicles.
Liger : GM’s Kansas City, KS plant makes the Malibu and the Aura. The Lacrosse is not produced in Kansas City.
bumpy : Yeah, the LaCrosse is the Impala’s roomie. Sales of Buick’s whipping boy have been steadily collapsing for a few years now anyway. GM probably has enough on hand already to see it through 2009.
The 2008 LaCrosse that shares its chassis with the Impala is going out-of-production sometime this December, if it hasn’t stopped already. There are not going to be any 2009 LaCrosses.
When the 2010 LaCrosse comes out in the spring of 2009 it will be a smaller car that shares its chassis with the current Malibu (which is an evolution of the Saturn Aura/Pontiac G6/Saab 9-3 chassis). The 2010 LaCrosse could well be built in Kanasas City when the factory opens again.
Edward, what part of ‘Ford does not need immediate bailout relief’ don’t you understand? Ford has never asked for an immediate cash bailout from the government. All Mullaly told members of congress during his testimony was that, although he believed it wouldn’t be necessary, the option needs to remain open in case market conditions worsen beyond Ford’s expectations.
The only ones groveling for cash were Nardelli and Wagoner.