Heated Seats Are Great But a Heated Steering...
GM reveals North American restructuring plan

GM reveals North American restructuring plan

Ralph Hanson June 3rd, 2008 Ralph Hanson By Ralph Hanson Author June 3rd, 2008
  • Articles Contributed: 1801
  • Comments Posted: 0
  • Leaderboard Rank: N/A

December 31st, 1969 GM today announced a range of strategic initiatives in response to growing demand for fuel-efficient vehicles and to economic and market challenges in North America. The major initiatives announced include new car and powertrain programs to meet changing demand in the U.S., new production details for the Chevrolet Volt plug-in hybrid, increased production of popular car models and reduced truck capacity, as well as a strategic review of the Hummer brand. "We are making a number of important announcements today, covering everything from product and technology investments to capacity adjustments to a strategic review of our Hummer brand," GM CEO Rick Wagoner told shareholders today. "These moves are all in response to the rapid rise in oil prices and the resulting changes in the U.S., changes that we believe are more structural than cyclical. Specific programs include the introduction of a new global compact car for Chevrolet, a next-generation Chevrolet Aveo, a high efficiency engine module for the U.S. market, addition of third shifts to the Lordstown and Orion plants, and ceased production at four plants that build pickups, SUVs and medium-duty trucks. The production cuts will see the Oshawa, Ontario, truck assembly operations in Canada, which builds the Chevrolet Silverado and GMC Sierra, cease in 2009. The plant in Moraine, Ohio, which builds the Chevrolet TrailBlazer, GMC Envoy and Saab 9-7x, will end production at the end of the 2010 model run, or sooner, if demand dictates. Janesville, Wisc., will cease production of medium-duty trucks by the end of 2009, and the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon in 2010. Finally, Chevrolet Kodiak medium-duty truck production will also end in Toluca, Mexico, by the end of this year. Wagoner said each facility employs about 2,500 people, but it's unclear if employees will be transferred or laid off. The new compact Chevrolet will represent the first U.S. application of GM’s global architecture strategy and will enter production in 2010 at the Lordstown, Ohio, plant. The car will be powered by a new 1.4L turbocharged four-cylinder engine that will also be produced in the U.S. The final specifications for the Chevrolet Volt plug-in hybrid have also been given the green light and are expected to be in showrooms by the end of 2010. Finally, GM is undertaking a strategic review of the Hummer brand to determine its fit within the carmaker’s portfolio. At this point, the company is considering all options, from a complete revamp of the product lineup to a partial or complete sale of the brand.
GM reveals North American restructuring plan

GM reveals North American restructuring plan

Enlarge Photo

GM today announced a range of strategic initiatives in response to growing demand for fuel-efficient vehicles and to economic and market challenges in North America. The major initiatives announced include new car and powertrain programs to meet changing demand in the U.S., new production details for the Chevrolet Volt plug-in hybrid, increased production of popular car models and reduced truck capacity, as well as a strategic review of the Hummer brand.

"We are making a number of important announcements today, covering everything from product and technology investments to capacity adjustments to a strategic review of our Hummer brand," GM CEO Rick Wagoner told shareholders today. "These moves are all in response to the rapid rise in oil prices and the resulting changes in the U.S., changes that we believe are more structural than cyclical.

Specific programs include the introduction of a new global compact car for Chevrolet, a next-generation Chevrolet Aveo, a high efficiency engine module for the U.S. market, addition of third shifts to the Lordstown and Orion plants, and ceased production at four plants that build pickups, SUVs and medium-duty trucks.

The production cuts will see the Oshawa, Ontario, truck assembly operations in Canada, which builds the Chevrolet Silverado and GMC Sierra, cease in 2009. The plant in Moraine, Ohio, which builds the Chevrolet TrailBlazer, GMC Envoy and Saab 9-7x, will end production at the end of the 2010 model run, or sooner, if demand dictates.

Janesville, Wisc., will cease production of medium-duty trucks by the end of 2009, and the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon in 2010. Finally, Chevrolet Kodiak medium-duty truck production will also end in Toluca, Mexico, by the end of this year. Wagoner said each facility employs about 2,500 people, but it's unclear if employees will be transferred or laid off.

The new compact Chevrolet will represent the first U.S. application of GM’s global architecture strategy and will enter production in 2010 at the Lordstown, Ohio, plant. The car will be powered by a new 1.4L turbocharged four-cylinder engine that will also be produced in the U.S.

The final specifications for the Chevrolet Volt plug-in hybrid have also been given the green light and are expected to be in showrooms by the end of 2010.

Finally, GM is undertaking a strategic review of the Hummer brand to determine its fit within the carmaker’s portfolio. At this point, the company is considering all options, from a complete revamp of the product lineup to a partial or complete sale of the brand.

Tags: Industry, General Motors

Posted in: News


Comments (5 total)

Meet the top commenters on the Leaderboard

  1. By JVC #1, Posted: 6/3/2008

    How many "restructuring plans" has GM introduced in the last 10 years?!?! Perhaps its time to introduce a new plan to stop introducing new (failed) restructuring plans.

  2. By DadzBoyz #2, Posted: 6/3/2008

    The willingness to change plans and move with the market shows that GM is willing to change with the times. The last "Restructuring Plan" was created when gas was still $1.50 a gallon. I hav eot say that this shows a behemoth of a company trying to be somewhat nimble. If they can continue to offer interesting products that are leaders (not competitve, but LEADERS) in features and innovation in their segments, all while continuing to increase quality, I would have to say "Bravo".

  3. By chris #3, Posted: 6/3/2008

    JVC, restructuring plans are based on 1-2 year outlooks, 5 year outlooks, and 10 year outlooks. you have analysis done on the market and make certain educated guesses at what kind of holes will need filling in the market. this all pretty much started in 2001 when the big three started offering rediculously good financing on their cars to jump start the economy... and to be honest, the economy has been far from great since 2001. it's a matter of "the economy will recover... next year... it has to"... and now you're looking at ridiculous gas prices that no one who is taken seriously in the business world had predicted. It's easy to blame the american auto makers for not being ready, but just the fact that hybrids have popped up so quickly is testiment to the fact that they were planning on this happening.. they just didnt forsee so little warning. the japanese brands were more or less closer to that goal, and have been able to capitalize on it. no one knew what a prius was in 2000. now its a fashion statement.

    basically, the market is being very unpredictable right now, and everyone is trying to keep up. the american companies, as corporations, were large cash cows.. successful companies on the whole, but not at all able to change quickly to market conditions. the way these guys make and lose money, they've historically found it more effective to just weather any storm. unfortunately this has been a 7 year storm and is sure to last another couple years at least. and I think people are starting to realize that it may never go back to the way it was in the 90's

  4. By amac #4, Posted: 6/3/2008

    If the Volt is a success, I can totally see GM doing their usual brand engineering. Let's see... the Pontiac Zap... the Buick Shocker... and the Cadillac AC/DC.

  5. By caveman23 #5, Posted: 7/15/2008

    No creativity. GM's turn around is BS and the existing executive team designing these solutions is a joke. It's the traditional bean counters at work with no creative thinking. Why haven't they come out and demonstrated a new way of working, building and designing cars and an innovative sustainable plan? From what I see, General Motors continues to screw its retirees and existing employees. Why would anyone want to work for this company? Workers were promised retiree benefits that included a pension and healthcare. Both have gotten either substantially cut or eliminated all together. This demonstrates they have no values. If they don't have values for their employees, how can they have values for the environment? They also mention no raises in 2009. If you're a young employee you should consider leaving now since you can still make something out of your career and you won't get a bump in pay in 2009. Why screw the employees and not do the hard things that can really show sustainable results? Come on GM, get creative! Eliminate your workers that aren't productive. You have a lot of slackers and non performers that should be fired before cutting into benefits of those people who once made you successful. If the GM board of directors was smart, they'd can the entire executive team. Look for downgrades from brokers and credit raters that will make it even more costly for them. People should comment on every blog out there about this BS plan. caveman

Post a Comment

Post anonymously
Sign In |
will stay private
your 'posted by' name will link to the URL

More from MotorAuthority

More from High Gear Media