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Sunday, May 31, 2009

GM Announces U.S. Small Car Plant

It looks like the UAW (and Obama) took GM out behind the shed for a little talk... GM is announcing that the will re-tool on of their U.S. plants (not "North America") to produce a small car (maybe the Spark).

Actually, it was not just coercion, but negotiation. According to news reports, the UAW gave GM further concessions, such as broader job classifications, to allow a small car plant to be profitable.

GM was looking at a public relations mess, with Ford previously announcing that the European Focus would be built in a re-fitted Michigan Truck plant, and the UAW howling that taxpayers should not fund more off-shoring of vehicles. By bringing a b-car line to the U.S., GM leapfrogs Ford, which is going to build its Fiesta in Mexico.

The whole thing makes me wonder, though. Was GM's plan to import Chinese cars a business plan, or was it a bargaining stick?

9 comments:

boom trucks said...

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Jason Gillman said...

Its all bargaining..

Union membership is a little more sensitive to the needs of its employer now however, and will likely encourage their reps to be a little more open to "change." Whether the UAW actually does enough will remain to be seen.

Anonymous said...

http://tinyurl.com/mxmpbs

As usual, Michale' Moron has the in-depth solution.

10ksnooker said...

And then there is this tiny little problem like who will buy these pint sized suicide clown cars?

There are things in life worth more than fuel mileage.

An hour spent perusing the IIHS crash test website should tell you all you need to know about suicide clown cars.

Anonymous said...

Since Holden Motors of Australia did such a great job with the Pontiac G8, what if they were to form an independent company in the U.S. to market their other cars under the Pontiac name...

Anonymous said...

10ksnooker:

Maybe Obama will promise the Chicoms that he will push legislation to mandate all subcompact drivers/passengers wear a Zorb ball.
That way they will get some of their bond investment money back.

wood chipper said...

nice article..keep up the good topics!

Used Pole Trailers said...

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Used Pole Trailers said...

Can the government do anything right by the American people?