GM Closing Another SUV Plant in December

GM told workers at its Janesville, Wis., assembly plant that it would be closing the facility that manufactures Chevy Tahoes, Suburbans and GMC Yukons in December. Previously, the company had only said the plant would be shuttered sometime before 2010. 

That will leave the 1,200 employees without jobs earlier than expected; their numbers had already shrunk from 4,100 in 2003.

What does this mean for the three SUVs? They’ll still be manufactured in plants in Texas and Mexico, so consumers will be able to purchase them. The trio was redesigned in the 2007 model year but took a hit in sales as gas prices rose this past summer.

GM is trying to cut costs in an effort to bolster its finances in a tough economy. Over the weekend, news broke that GM was talking about a merger with Chrysler, and it had already discussed such a deal with Ford. With all three automakers struggling, a merger might not be the magic bullet to solve their troubles. 

This news comes just a week after GM announced the closing of its Moraine, Ohio, SUV plant. Both Wisconsin and Ohio are major swing states in next month’s presidential election. 

GM to close Janesville, Wis., plant in December (Chicago Tribune)

Comments

[Yehiel]

Tell these people not to worry as they can have one of the 5 million new jobs that Obama-Biden will create with their New Energy plan.

[Troy S.]

Yehiel,

I'm sure those jobs will be instantly created and these workers won't miss a paycheck...

Yeah right.....

[Jimmy K]

They should be ashamed they even played a role in building those planet destroying gas hogs. I can't wait until Senator Obama gets in office and finally outlaws or taxes SUV's into oblivion.

[Cj]

Jimmy K, why would you want him to make SUVs unaffordable for the average family. There are people that need large family haulers and, they shouldn't be relegated to a tiny 5 seater sedan. Of course I believe most large families can get by with more fuel efficient minivans, but it would be very "socialistic" to force them to not buy SUVs.

[J]

Question: Why can't their plant switch to build some other vehicles?

[Amuro Ray]

Answer: UAW!

[Bernard]

I too look forward to Barack and Joe teaching the car industry what is acceptable. It's about time we put the planet first and pay our fair share of taxes. People in this country pro-create too much and drive vehicles that are far to large. Barack leads by example by driving a Ford Escape Hybrid and so should you!

[valero]

The Janesville plant is the oldest running GM plant out there. As such it costs more to re-tool this plant over other newer facilities.

If I remember correctly they recently switched over to the big SUVs there.

Really an issue of economics. This is a very old and expensive plant to run. Make sense to move to newer facilities that are easier to re-tool to meet market demand.

[Amuro Ray]

It's NOT because of how expensive to retool a factory (sans the incentives, of 'coz, from local gov't). It's because to build OTHER vehicles - and in today's date and age, SMALL vehicles, this means that the UAW will have to ask its members (i.e. same factory workers) to accept less paid and benefit since the profit margin of a small vehicle is significant less than any SUV or trucks. The reduction is actually quite large, and thus no UAW will "suggest" to its members to take such a consession. Remember, if the employee got laid off, many will get full paid for a long time, plus job banks, plus full benefits coverage! So think 'bou it: asking for consessions to work the same # of hours, but with huge consession on salary and benefit cut, versus not working (plant closing) and lose nothing. That's why UAW has actually worked with GM in "preventing" some of the plants to be converted to cars (smaller cars) production line, but to stay on building SUVs/Trucks for the past 2+ years. As for the manufacturers, because UAW won't accept this conversion, there's no choice but to build plants (for mostly small cars) somewhere else, especially in places where labor's cheap to boost small cars' profit more.

[YOING]

Maybe GM will just erect another plant in China or Korea and build them there? Sure, it wouldn't be too good for our economy here, but what does that matter as long as GM continues to rake in the huge profits on these beasts.

[Stan Shields]

Maybe you should ask Obama what the gas mileage is in his private jet. Pretty sure he spends more more in gas on that jet than I will ever spend in my SUV. Don't preach about his Hybrid.