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How GM Can Fix Itself

Discussion in 'Other Cars' started by Rancid13, Nov 29, 2005.

  1. Rancid13

    Rancid13 Cool Chick with a Black Prius

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    How GM Can Fix Itself

    With labor costs bogging it down and Toyota in the passing lane, the world's biggest automaker is in trouble. Will its CEO do the overhaul it needs?

    By DAREN FONDA

    Posted Sunday, Nov. 27, 2005

    [This article contains a complex chart -- Please see hardcopy of magazine or PDF.] Standing under a fading blue sign that says BIRTHPLACE OF THE AMERICAN V6, Allan Taylor gestures at the factory behind him and grimaces. "Everything in there is obsolete," he says of the Buick engine plant. Taylor has spent 30 years there, and at 59 he's nearing retirement. It's a good thing too, since the plant won't be running much longer. General Motors plans to shut it down in 2008, one of nine factories the company aims to close, eliminating 30,000 jobs. Taylor is surprised the plant has lasted this long. "We have to put buckets under the machines to catch the leaking oil," he says. Buick City, where he works, was once a vast manufacturing complex more than a mile in length. It's now mostly a desolate field of crushed stone surrounded by parking lots too big for GM's shrinking workforce. If you didn't know you were in Flint, Mich., you might think you were at an old Soviet factory that made nameless products no one really wanted.

    Full Article
     
  2. Rancid13

    Rancid13 Cool Chick with a Black Prius

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    "Meanwhile, GM is playing catch-up in the hot market for hybrids because it has been losing sales to Toyota and Honda. The Japanese companies began developing hybrids in the '90s, when Detroit scoffed at the technology as economically unviable. "GM's reasoning with hybrids was, Why bother when trucks are selling?" says Matheson. Toyota put hybrids on the market even when the company knew they wouldn't make money right away. "Detroit doesn't think that way," Matheson says. Both GM and Ford are coming to market with their first hybrid models, while Toyota and Honda are already selling second generations."



    Yeah, why bother?..... :mellow:
     
  3. jayman

    jayman Senior Member

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    This bad attitude also exists in other North American industries, such as petrochemicals, production, chemicals, etc. In many cases the company can't conceive of "long term" past the second or third quarter.

    Refineries are the classic example where technology from the 1960's - pneumatic control loops run on 5-15 psi air pressure - are expected to be used in the 21st century. It can take weeks to go from a cold start to making in-spec product, as Hurricanes Katrina and Rita demonstrated for us.

    The Chinese state oil company SECCO recently completed the world's largest Foundation FieldBus installation as part of their new refinery. They have the largest ethylene cracker on the planet, actually 10 cracking units around a central product unit.

    Their time from cold-start to inspec? 10 hours. Compared to WEEKS. With all the efficiency and productivity gains you'd expect from 21st century technology. It helps that was a "green field" plant and it also helps the Chinese don't cling to old production methods.

    With all the record oil company profits, why don't we see American refiners using similar technology? Or for that matter, car assembly plants. All of my recent process control work has been directed towards Asian clients, not North American clients.

    So, is that my fault (Traitor issue has come up before), the Asians fault, or our own government? We appear to have created our mess, it's only right that we try to fix it.
     
  4. AlphaTeam

    AlphaTeam Member

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    It really makes me sad to read that article. Every car I have ever owned was a GM, till now. They seem like the government. They KNOW what is best for the consumer, they KNOW what the consumer wants so they will make it come hell or high water. What they don't realize is unlike our one choice when it comes to government we have a choice to buy or not to buy from them. I'm sorry make a car I WANT to buy. Get rid of the lazy union worker. When a UAW union worker makes 2 or 3 times what a person with a similar job that is non-union worker does is just sick. 2 years after a lay off you get 95% pay....give me a break...oh boo hoo you union rat.
     
  5. Jack 06

    Jack 06 New Member

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    UAW assembly workers make a good target, but they do not account for the ongoing drop in GM's US or world market share.
     
  6. AlphaTeam

    AlphaTeam Member

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    No I do not solely blame them. There are several reasons as the article states. That is one point I feel stongly about though.
     
  7. paprius4030

    paprius4030 My first Prius

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    Jack 06, your so right!!! The poor slob working guy always gets the shaft. Maybe if an everyday guy had some say inGM they wouldn't be in the shape their in. Maybe if the person that made the bad descions got the AX so many jobs wouldn't be eliminated because they would have modern products that people would buy. Too bad Toyota can't take over some of these closed plants(although from the sounds of their condition maybe they wouldn't want them) or at least take over some of the workers so they can still have jobs.
     
  8. MarinJohn

    MarinJohn Senior Member

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    Doesn't it seem obvious to anyone but me that the first cost-cutting measure should be to eliminate all high end 'bonuses'? Funny how the article didn't mention Clinton's attempt at nudging US automakers in the right direction by GIVING them BILLIONS to develop hybrids 10 years ago, and how they took the money and ran kicking and screaming AWAY from hybrids, and rewarded their highest paid executives with outrageous bonuses.
     
  9. windstrings

    windstrings Certified Prius Breeder

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    In todays news:
    By Leslie Wines, MarketWatch
    Last Update: 3:23 PM ET Dec 20, 2005

    NEW YORK (MarketWatch) - U.S. stocks were lower in late afternoon trade Tuesday, as strategists suggested the year-end rally may be over, while General Motors traded not far from its all-time low stock price.