GM to shut down US Factories for up to nine weeks.

[SirFozzie]

Yeah, tell the fat lady to warm up her vocal cords, they're going going....

Sources: GM to shut most US plants up to 9 weeks

DETROIT – General Motors Corp. is planning to temporarily close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles, two people briefed on the plan said Wednesday.

The exact dates of the closures were not known, but both people said they will occur around the normal two-week shutdown in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.

GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.

The automaker is living on $13.4 billion in government loans and faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn't meet the deadline, the company's CEO has said it will enter Chapter 11 bankruptcy protection.

United Auto Workers officials at several factories said they have meetings scheduled Thursday and Friday with plant managers and GM human resource officials to discuss production changes.

The automaker's sales were down 49 percent in the first quarter compared with the same period last year, and GM had a 123-day supply of cars and trucks at the end of March, according to Ward's AutoInfoBank. GM already has more than a six-month supply of several models.

[molson]

The only question is how much more money will they manage to swindle from taxpayers before going under.

You wouldn't invest your money in a company like this. But we have a government that does that for us.

[path12]

That's a shame. I suppose that break will funnel down to the parts manufacturers also. Dealerships should stay open, obviously there is plenty of inventory.

[path12]

Originally Posted by molson

The only question is how much more money will they manage to swindle from taxpayers before going under.

You wouldn't invest your money in a company like this. But we have a government that does that for us.

I'd rather try and keep an industry afloat that has so many supporting industries tied to it than keep shoveling billions to a global banking concern. My two cents.

[RainMaker]

Originally Posted by path12

I'd rather try and keep an industry afloat that has so many supporting industries tied to it than keep shoveling billions to a global banking concern. My two cents.

I still think that "supporting industries" argument doesn't fly. If GM goes under, it's not like people will just stop buying cars altogether. The demand would simply shift to new automobile makers who would have to buy more from the supporting industries.

How long can you continue paying people to build cars no one is buying? Better off just sending them off and giving them welfare checks. This propping up of a failing company that no one wants to buy cars from has run its course.

[JonInMiddleGA]

Originally Posted by RainMaker

The demand would simply shift to new automobile makers who would have to buy more from the supporting industries

Depends on who those supporting industries are as to what impact that actually has though. I mean, does every widget maker for GM also make widgets for every other manufacturer as well? I imagine some do & some don't but really don't know the fine details of the niche well enough to say for sure either way (maybe somebody here actually knows for sure?).

Truth is, I don't believe anybody outside of the suppliers themselves knows for sure what happens to those individual support companies if GM ceases to be.

[path12]

I don't know the ramifications well enough, but my understanding is that once those small machine plants shut down it's very difficult to get them up and running again.

And believe me, I'm not a fan of what the Big Three have done over the years or the bailout, but man, how many other tangible things do we produce anymore?

I just find it interesting that the outcry for the auto bailouts was so much greater than the ones for the banks -- which were exponentially larger. It seems to me that far more real jobs hinge on the auto industry than the banking industry.

[JonInMiddleGA]

Originally Posted by path12

but man, how many other tangible things do we produce anymore?

More than we probably think of off hand, just not to the extent of something as visible as the auto industry. Thing is, I don't think we're nearly as good at tangible goods as we used to be, we're more of service user & provider at this point or at least better at doing those things. Hell, that's what we've invested how much in trying to crank out of our colleges & universities for how long now? No wonder then that we end up pointed in that direction. I'm not saying good, bad, or indifferent about that but it seems pretty obvious to me.

I just find it interesting that the outcry for the auto bailouts was so much greater than the ones for the banks -- which were exponentially larger.

I think that's kind of understandable though, the average person has a better understanding of GM than they do of the banks involved at the bailout level. They understand better how & why it won't work than they do about the bank stuff.

[RainMaker]

Originally Posted by JonInMiddleGA

I think that's kind of understandable though, the average person has a better understanding of GM than they do of the banks involved at the bailout level. They understand better how & why it won't work than they do about the bank stuff.

I also think there are some anti-union people that loved to use this as an excuse to bash them.

[RainMaker]

Originally Posted by JonInMiddleGA

Depends on who those supporting industries are as to what impact that actually has though. I mean, does every widget maker for GM also make widgets for every other manufacturer as well? I imagine some do & some don't but really don't know the fine details of the niche well enough to say for sure either way (maybe somebody here actually knows for sure?).

Truth is, I don't believe anybody outside of the suppliers themselves knows for sure what happens to those individual support companies if GM ceases to be.

Yeah, but GM going out of business means more sales for Toyota, Ford, etc. They have suppliers too and their suppliers reap the benefits of this.

It is sad to see that people will go out of business. But marketshare simply shifts, and that shift is toward companies that are better run. I just don't think we can stop the evolution of industries because a company has a household name or employs a lot of people. GM couldn't stay with the times and they don't deserve to be in business.

[JonInMiddleGA]

Originally Posted by RainMaker

Yeah, but GM going out of business means more sales for Toyota, Ford, etc. They have suppliers too and their suppliers reap the benefits of this.

Seen any numbers of the domestic supplier percentage for the other companies? I haven't which is why I'm asking. If it's the same then it should be relatively transferable but if it isn't then it can't be painted as a wash either.

[ISiddiqui]

Originally Posted by path12

I just find it interesting that the outcry for the auto bailouts was so much greater than the ones for the banks -- which were exponentially larger. It seems to me that far more real jobs hinge on the auto industry than the banking industry.

Another reason is that if banks stop lending &/or failing, everything that requires the slightest bit of funding (just about everything really) goes under and it's Great Depression II at that moment.

[GoldenEagle]

Unbelievable that things got this far.

[DaddyTorgo]

you won't see all the us automakers go under

the us government won't allow it, simply from a defense-standpoint. they won't become 100% dependent on foreign suppliers for military jeeps/trucks/etc. they can't be. it will not happen.

sorry - i know i could say that more clearly but for some reason the words are eluding me right now.

[path12]

Originally Posted by JonInMiddleGA

More than we probably think of off hand, just not to the extent of something as visible as the auto industry. Thing is, I don't think we're nearly as good at tangible goods as we used to be, we're more of service user & provider at this point or at least better at doing those things. Hell, that's what we've invested how much in trying to crank out of our colleges & universities for how long now? No wonder then that we end up pointed in that direction. I'm not saying good, bad, or indifferent about that but it seems pretty obvious to me.

To me that is the one thing that has really hit home in the current recession. How can a service oriented economy grow its way out of a slump without actually making something? I agree with you, there are probably more things than what come to mind, but I'm not sure it's enough stuff if you get what I mean.

[ISiddiqui]

How did we get out of the 79-82 recession? Manufacturing ain't the only way to boost GDP (then, the US manufactures more things now than it ever has in the past, most of it just tends to automated and it isn't as large a share of world's manufacturing).

[Fidatelo]

Switching suppliers of GM parts to Toyota or Honda would still result in a loss of jobs simply because those cars don't break down every 2000 miles.

[ISiddiqui]

LOL!

[Mizzou B-ball fan]

Originally Posted by Fidatelo

Switching suppliers of GM parts to Toyota or Honda would still result in a loss of jobs simply because those cars don't break down every 2000 miles.

Yeah, but they can't break down if they're just sitting on the car lot either.

[Fidatelo]

Originally Posted by Mizzou B-ball fan

Yeah, but they can't break down if they're just sitting on the car lot either.

I wouldn't be so sure!