GM huge lay off

[2.8 Bird]

This video pretty much explains why GM is in this state. What do you guys think. Is he correct.

https://youtu.be/FEyppHyeSWQ

[ssms5411]

I like that guy, watched many of his car repairs. Yeah hes probably right, they should of never bailed GM out in the first place, and they probably will move their plants to China. If they do I'll probably buy a Dodge for the next vehicle.

[LETZRIDE]

I was guessing they were going to Mexico - didn't know the sales were so high in China.

The fact that they shut down multiple plants in the US and Canada not long after getting the bailout is brutal. There is a lot of valid points regarding part of the bail out was a call to save American jobs...then as soon as they get on their feet and see an opportunity it's like "see ya".

I get "they have a business to run" and want to cut costs as much as they can - but I can't stand behind them in this decision. I'll continue to stick to old school vehicles and as much as I wanted a new Camaro at some point - I'll get one predated 2018 when I do. If it wasn't manufactured in Canada or the USA I don't want it.

I can't stand Dodge build quality (awesome looking vehicles, I think the RAM and Challenger look amazing) but God I can't stand the ridiculousness of their engineering and build quality. If GM sticks to their guns on pulling out I'll go Ford or select Toyota's depending on where they were manufactured. Their trucks have peaked my interest some and have been manufactured in Texas and California for the most part - although I shutter at the thought of owning a Toyota lol - the reliability in them really is there.

[ssms5411]

Yeah my older brother drives a 2010 FJ has 200k miles and still going strong, they make good daily drivers. Ive rode in it and seems nice, but not as nice as my truck. Lol I would only go with Dogde because of the Challenger like the looks alot, and of course get the SRT.

[FirebirdGT]

Yep - sure is

[2.8 Bird]

IMO they should've just improved their plantform. Just like the way they did with the Vette and it's drivetrain. The same platform, but keep improving it. I think they could've done the same thing for the 3800 engines. Instead they've cancelled it.

[LETZRIDE]

Hopefully the government gets smart and slaps tarrifs like crazy on any of their cars they try to import back here. So if they do manufacture in China or Mexico for cheap and bring them back here they’ll get crushed by taxes and be priced out of the market forcing them to reopen plants here to sell their cars here. Either that or they’ll have to pull out of the North American market.

I think if the government does this it will do 2 things- serve as an example to other companies and it’s a move to truly protect American / Canadian jobs. Unfortunately I have zero faith in Trudeau so that won’t happen on this side of the border...

[FirebirdGT]

Hopefully the government gets smart and slaps tarrifs like crazy on any of their cars they try to import back here. So if they do manufacture in China or Mexico for cheap and bring them back here they’ll get crushed by taxes and be priced out of the market forcing them to reopen plants here to sell their cars here. Either that or they’ll have to pull out of the North American market.

Who do you think pays the tariffs? Not the manufacturer - they just pass it on by raising the price of the product. Point is to make it more expense than buying local. GM will just stop selling cars in the US and stay in a market with a profit.

[LETZRIDE]

Who do you think pays the tariffs? Not the manufacturer - they just pass it on by raising the price of the product. Point is to make it more expense than buying local. GM will just stop selling cars in the US and stay in a market with a profit.

Of course the consumer pays- but look at it like this: GM sold approximately 4 millions vehicles in china last year and 3 million in the US. If the government slaps a hefty tariff on any car produced by them outside the USA / Canada then you make any vehicle like the Silverado for instance go from a lets say a $50k vehicle to a $70-80k vehicle- which no one will buy because it isn’t $20-30k better than a Ford/Dodge/Toyota counterpart.

So GM either has to pull out of North America and forfeit 3 million car sales which accounts for around 40% of their profits, or, go back to manufacturing their vehicles here to avoid tarifs.

I highly doubt they would pull out when atleast 40% of their sales are still here. They would really shoot themselves in the foot if they did that.

[SHADOWII]

China's market last year was 24+ million cars sold. That is a large increase in volume if GM can gain a foothold in the market place. The tariffs that our President may put on China's products, May discourage the Chinese from purchasing those cars or any products bought by the Chinese. So GM is gambling or at least their new ceo is.
First, before any company can open a factory in china, you have to surrender all your intellectual property to the Chinese government for review. Then they will tell you whether or not you may start your business in their country. Mercedes Benz tried that and after submitting their intellectual property, i.e. blue prints, schematics etc, they were denied and china came out w/it's own version of a Mercedes.

[LETZRIDE]

China's market last year was 24+ million cars sold. That is a large increase in volume if GM can gain a foothold in the market place. The tariffs that our President may put on China's products, May discourage the Chinese from purchasing those cars or any products bought by the Chinese. So GM is gambling or at least their new ceo is.
First, before any company can open a factory in china, you have to surrender all your intellectual property to the Chinese government for review. Then they will tell you whether or not you may start your business in their country. Mercedes Benz tried that and after submitting their intellectual property, i.e. blue prints, schematics etc, they were denied and china came out w/it's own version of a Mercedes.

I wouldn't punish them for selling a vehicle the Chinese purchases. By all means anyone who has a business has that the opportunity to expand will look to do so. But all the President / Prime Minister here need to do is tariff vehicles produced largely in other countries like China to death. Even if they put a percentage on it like any vehicle that is constructed more than 70% in foreign countries like China is subjected to ridiculous tariffs.

It forces GM to either go bankrupt in America for not being able to compete with the market here and pull out, or reopen manufacturing jobs. In my opinion there is too big of a piece of the pie left on the table for them to walk away and pull out of America.

As far as submitting blue prints, schematics, etc I didn't know that. But frankly that doesn't surprise me when you really think to how much "counterfeit" and "knock off" products come from China.

Curious what is the name of the Mercedes version vehicle that China made? I'd be curious to read up on it.

[SHADOWII]

The information about the Mercedes was given by Jeremy Clarkson on the BBC Top Gear show when they were in China. He displayed several items that were the knock-offs including a BMW suv. He was driving the Chinese version of the M/Benz when he commented on the event that took place. I tried fore two hours to find it on youtube, w/o success. I could only find a short segment addressing an I-pad, notebook, sun-glasses, etc.
The tariffs are on the incoming products in order to level the playing field. Any punishment given to GM is for putting Americans out of work(15,000 of them) and giving those jobs to the host country/countries. GM took our tax money to avoid going belly-up and still owes $11,000,000,000.00 that the obama admin. called paid. I don't believe the 15,000 employees being cut includes the sub-companies that will be losing business and having to lay-off employees is counted in the original number. A bankruptcy court would have taken care of all of GM's problems, but they chose to become "Government" Motors by taking the handout w/the government pulling the strings. The company is not broke, it has pulled in a profit of ~15 billion.

[sac2165]

My theory is driverless cars are on the horizon, guys like GM and Ford are consolidating their models in an attempt to get it right on the first try. Tons of extra technology and extreme safety measures to make the public feel reasonably confident over the first few years.