Canadian Railroads > GM to shut Oshawa plant?

Multiple reports say General Motors will shut down its large auto plant.

If true, it won't be good for the railroads.

Posted from Android

Lackawanna484 Wrote:
-------------------------------------------------------
> Multiple reports say General Motors will shut down
> its large auto plant.
>
> If true, it won't be good for the railroads.

Very true about it not being good for the railways .... or for the entire Canadian economy.
Official announcement expected shortly .
https://nationalpost.com/news/canada/general-motors-to-announce-closure-of-oshawa-plant-affecting-thousands-of-jobs

 

Will MacKenzie
Dundas, ON

Oshawa was the largest plant in N America at one time. 4 plants co-located. Down to 1 post 2008 IIRC.

If true, Chrysler - Windsor, Honda - Alliston, Toyota - Ingersoll, Ford - Oakville are the last 4 remaining auto plants in Canada. Corrections welcome.

what was the reason for the closure?

66

Closure due to lack of sales of some GM  vehicles along with cost cutting.  Buyouts were offered to many white collor workers a month ago.  Now comes the plant closures.

Not just Oshawa: https://www.politicususa.com/2018/11/26/gm-to-slash-jobs-and-production-cancel-some-car-models.html?fbclid=IwAR3E7sygA6IvKm-NcY_IdjT0RATtpkbAu0DsLdq13xWNF17YgjGUchC-Kxg

King_Coal Wrote:
-------------------------------------------------------
> Oshawa was the largest plant in N America at one
> time. 4 plants co-located. Down to 1 post 2008
> IIRC.
>
> If true, Chrysler - Windsor, Honda - Alliston,
> Toyota - Ingersoll, Ford - Oakville are the last 4
> remaining auto plants in Canada. Corrections
> welcome.

Don't forget Toyota in  Cambridge too...

That's a good article. Operating at 31% of capacity is a death sentence.

If people won't buy what you're selling, making more of it is not a good idea.

Posted from Android

GM will also get rid of 15% of its Salaried workforce. So much for the alleged benefits of gutting NAFTA.

The Baltimore Sun notes that the plant closings involve some facilities manufacturing hybrid vehicle engines, truck transmissions, etc. The White Marsh MD plant is only 20 years old, and is partly powered by solar panels financed the the US federal government

https://www.baltimoresun.com/business/bs-gm-cuts-20181126-story.html

King_Coal Wrote:
-------------------------------------------------------
> Oshawa was the largest plant in N America at one
> time. 4 plants co-located. Down to 1 post 2008
> IIRC.
>
> If true, Chrysler - Windsor, Honda - Alliston,
> Toyota - Ingersoll, Ford - Oakville are the last 4
> remaining auto plants in Canada. Corrections
> welcome.

CAM (GM) Ingersoll
Chrysler Bramalea

Posted from Android

I don't know if it's still the case, but there used to be an equaling agreement. Cars sold in Canada had to equal cars manufactured in Canada.

So Chrysler could export minivans to the U.S., but its imports couldn't exceed exports.

I think NAFTA phased that out.

Posted from Android

GM is also closing fifty year old Lordsown, Ohio Plant which produces the Chevy Cruz.  The Cruz is a bad car compared to Hondas, Hyundais, Nissans, and Toyotas of similar size.  GM got into trouble last time by producing bad products.  The US government bailed them out and initially they improved quality control.  But just like the rail industry, the lure of management bonuses was just to much to ignore,and the result was a poorly designed car that in no way could compete with the quality control of it's competitiors at Honda, Hyundai, Nissan, and Toyota. Even NAFTA couldn't save the Cruz.

Sales of "conventional" autos ( sedans) have been declining for years.  Despite government insistance on improved fuel econonmy, the consumer wants SUVs and Pickup trucks.  If small cars are not selling, you should adjust your production to whats selling.  Its that simple.

Norm

Norman Orfall
Helendale, CA
TIOGA PASS, a private railcar

A friend of mine (nonunion) is taking the buyout. He has worked for GM over 30 years and is third generation GM. He says he will take it. The offer is 6 months pay. He retains his pension that he can draw next year but has to wait for social security as is under 62. He will also dip into his 401K as has to pay for his health insurance. He is also told he can not say anything negative about GM and not work for a competitor or supplier. I suppose he is better off than many of us baby boomers who were "downsized". At the last GM plant he worked his job was replaced by a temp. He says he's sure that the same thing will happen again but thinks the buyout will be less later.

Victor A. Baird
http://www.erstwhilepublications.com

DLM Wrote:
-------------------------------------------------------
> Closure due to lack of sales of some GM  vehicles
> along with cost cutting.  Buyouts were offered to
> many white collor workers a month ago.  Now comes
> the plant closures.



Edited 1 time(s). Last edit at 11/29/18 17:21 by wabash2800.

ubee1964 Wrote:
-------------------------------------------------------
> GM is also closing fifty year old Lordsown, Ohio
> Plant which produces the Chevy Cruz.  The Cruz is
> a bad car compared to Hondas, Hyundais, Nissans,
> and Toyotas of similar size.  GM got into trouble
> last time by producing bad products.  The US
> government bailed them out and initially they
> improved quality control.  But just like the rail
> industry, the lure of management bonuses was just
> to much to ignore,and the result was a poorly
> designed car that in no way could compete with the
> quality control of it's competitiors at Honda,
> Hyundai, Nissan, and Toyota. Even NAFTA couldn't
> save the Cruz.


Two questions.

1. Since you don't state any, what is "bad" about the Cruz?

2. How do you explain the tailspin that Hyundai/Kia finds themselves in? Toyota is also "rationalizing" their line up including dropping many Prius models due to slow sales.

Posted from Android

NYSWSD70M Wrote:
-------------------------------------------------------
> ubee1964 Wrote:
> --------------------------------------------------
> -----
> > GM is also closing fifty year old Lordsown,
> Ohio
> > Plant which produces the Chevy Cruz.  The Cruz
> is
> > a bad car compared to Hondas, Hyundais,
> Nissans,
> > and Toyotas of similar size.  GM got into
> trouble
> > last time by producing bad products.  The US
> > government bailed them out and initially they
> > improved quality control.  But just like the
> rail
> > industry, the lure of management bonuses was
> just
> > to much to ignore,and the result was a poorly
> > designed car that in no way could compete with
> the
> > quality control of it's competitiors at Honda,
> > Hyundai, Nissan, and Toyota. Even NAFTA
> couldn't
> > save the Cruz.
>
>
> Two questions.
>
> 1. Since you don't state any, what is "bad" about
> the Cruz?
>
> 2. How do you explain the tailspin that
> Hyundai/Kia finds themselves in? Toyota is also
> "rationalizing" their line up including dropping
> many Prius models due to slow sales.
>
> Posted from Android

Could you guys at least spell it correctly? It Cruise not cruz. Or was that a slap at GM moving production to Mexico?

PHall Wrote:
-------------------------------------------------------
> NYSWSD70M Wrote:
> --------------------------------------------------
> -----
> > ubee1964 Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > GM is also closing fifty year old Lordsown,
> > Ohio
> > > Plant which produces the Chevy Cruz.  The
> Cruz
> > is
> > > a bad car compared to Hondas, Hyundais,
> > Nissans,
> > > and Toyotas of similar size.  GM got into
> > trouble
> > > last time by producing bad products.  The US
> > > government bailed them out and initially they
> > > improved quality control.  But just like the
> > rail
> > > industry, the lure of management bonuses was
> > just
> > > to much to ignore,and the result was a poorly
> > > designed car that in no way could compete
> with
> > the
> > > quality control of it's competitiors at
> Honda,
> > > Hyundai, Nissan, and Toyota. Even NAFTA
> > couldn't
> > > save the Cruz.
> >
> >
> > Two questions.
> >
> > 1. Since you don't state any, what is "bad"
> about
> > the Cruz?
> >
> > 2. How do you explain the tailspin that
> > Hyundai/Kia finds themselves in? Toyota is also
> > "rationalizing" their line up including
> dropping
> > many Prius models due to slow sales.
> >
> > Posted from Android
>
> Could you guys at least spell it correctly? It
> Cruise not cruz. Or was that a slap at GM moving
> production to Mexico?

It's actually 'Cruze'. 

GM purchased Cruise Automation, and runs it as a separate division.  It's separate from the Chevrolet Cruze.

Cruise Automation is an interesting little piece of business, with exciting technology.  Honda has invested in the technology, and is a part owner.  The Chevy BOLT (not to be confused with the Volt) is the test bed.

> Two questions.
>
> 1. Since you don't state any, what is "bad"  about
> the Cruz?

 > 2. How do you explain the tailspin that
 > Hyundai/Kia finds themselves in? Toyota is also
 > "rationalizing" their line up including
> dropping
 > many Prius models due to slow sales.


> Could you guys at least spell it correctly? It
> Cruise not cruz. Or was that a slap at GM moving
> production to Mexico?

======================================================

Actually, it's Chevrolet Cruze.  With an "E."  Probably this was to avoid registered trademarks
which included "Cruise" and "Cruiser."

https://www.chevrolet.com/cars/cruze-compact-car

A lot of the slow sales "problems" with the Cruze stemmed from GM's Bad Old Days
when they built bad cars (does anybody remember the early Saturn Ion sedan, with its
outsourced Japanese automatic transmission, which. though working as designed, FELT
like it was malfunctioning?).  By the time the current generation Cruze was introduced,
it was a decent car and competitive with the Asian makes...and usually lower priced. 

But GM had driven off the business by then; sedan buyers generally being more cautious
and conservative, they had by then been "sold" on the "good" cars of that prior era,
never to return.

The sedan market is shrinking, and has been for a while.  As cars become smaller, the
greater capacity of the car-based sport-utility vehicle becomes more important.  GM,
like most American companies, are focused on the short term, and their share of the
shrinking market makes for a corporate decision not to focus on the market.  Toyota
is having its woes, too..."Toyota USA did not meet its profit goals last year (along
with so many others), and is also cutting staff and overhead, as well as increasing truck
production to the extent possible. But it’s also determined to make the most of its
sedan line" -Curbside Classic, Nov. 28, 2018.

As for being bad for the railroads, so what?  Like any business, the railroads need to
adapt if they are to survive.  Hopefully they do a better job of it than did General Motors,
which wound up in bankruptcy and had to be bailed out by Obama.

Oh, yeh...the railroads DIDN'T do a better job back in the 1960s and 1970s...the Northeastern
ones went under and had to be bailed out by the Government.
 



Edited 4 time(s). Last edit at 11/28/18 12:03 by GenePoon.