GM To Close Plants And Layoff THOUSANDS During One Of Strongest Economic Booms In US History

Misleading title. We are at the end of a strong economic cycle. GM is preparing to save cash to get thru the upcoming downturn.
The CT6 cancelation was the biggest surprise.

Right..all that "winning" that trump touted circling the toilet just like his horrible presidency. Fraud -In -Chief.

#SocialistAlert
#IdiocyAlert

The Continental and now the CT6. The US is surrendering on full size luxury cars.

The Continental should have replace the MKZ at the MKZ price and then there should have been a massive leasing push. Lincoln aimed the Continental wrong and the dealers told them so BEFORE the car was launched. The CT6 was also placed and priced wrong. It should have replaced the CTS and should have been called Elmiraj. There too aggressive leasing should have been pushed. BOTH are failures because Lincoln and Cadillac aimed too high.

I heard Chinese and Mexican close these plants?... Or is it Tesla?

Conflicting news on Cadillac. One report says its the XTS being cut, and the CT6 being moved to another plant since they just did a refresh on it. Would seem to make more sense since Caddy does plan to still have sedans.

I had thought the CT6 was the most advanced production car Cadillac had ever made. Mixed materials and complex stamping for key structural areas. etc.

One must remember that the CT6 is being produced at two Plants currently - and nothing was said about its production that would indicate it would stop CHINESE production.

Note - the current Omega Platform was not long for this world - as it was going to be replaced by VSSR-R platform that would be used for ALL Gm rear wheel drive cars (Using a number of subsets of that platform). The Omega Platform - while it is very advanced - likely also was costly as a platform for only LARGE rear wheel drive cars - of which GM had ONE.

THe current CT6 Hybrid is only made in CHINA as well. With sales of only a couple thousand a month - in the USA - it clearly makes sense to make the cars in CHINA - and then bring them here. I suspect that same thing will be done with the Large Buick and Chevy cars as well.

I note that while they say what vehicles were made in the plants that will be closed -they have NOT said what vehicles would no longer be available. It is much like Ford Keeping the Mondeo in Europe - where it is a good seller - even though its American Counterpart is being closed out.

Not sure if you heard but the CT6 PHEV is dead in the USA. But GM should not be allowed to import Chinese made cars without tariffs. China built its industry by enormous tariffs or required JV's. Its not about GM its about USA - China trade and we should enforce exactly what they've been doing... at least Volvo/Geeley built a plant in SC...

I understand - but there are problems with the reporting too.

One must remember that GM's largest market is CHINA - not the USA. THat they would consolidate production there is not out of the ordinary. AS far as being American - they are worldwide and you would not say that Mercedes should produce all the vehicles they sell here - in plants here either.

THe XTS was not supposed to last this long - so its loss is not a big deal to me. Cadillac is moving to completely RWD/AWD - and not using any Front Drive Platforms so that ALL of the Cadillac Rear Drive Sedans are projected to be produced on ONE platform (With several sub-platforms) - The VSS-R platform. And all of them will be able to be produced in ONE plant. ANd that brings up the importing from CHINA - the ATS and CTS - are on their way out - moving to the new platform - as the CT4 and CT5 - so that platform plant is in Lansing Michigan - so the only cars they would be bringing here from CHina would be the CT6 for the interim until the new model on the new platform is produced in Lansing as well. WE are only talking about - at best - a few thousand a month - certainly NOT high volumes. And for about 2 years only. It is clearly less expensive for GM to produce those cars in CHINA - and it would be hard to justify building them here on a single line that would be WAY underutilized.

I also note that the Chevy Cruz in also built in Mexico - so I would expect it to survive as a nameplate at least.

And Since the next group of Front WHeel Drive cars are projected for the VSS-F platform - ALL of the Front WHeel drive GM cars will also be able to be produced on a single line as well. There is much more to this story that we do not yet know.

very good synopsis... thanks Tom..

Interesting take on this Tom. It is still a bit of a PR mess nonetheless. GM should be more subtle and roll things out bit by bit as it does not have the large negative impact all at once. The unions and management should take this opportunity to work on better arrangements as well with stronger union say in operations and vehicle quality and management curbing their exorbitant appetite and paying attention to workers on the front lines.

The rest of the article explains that the slashing is due to two major factors. Market migration away from sedans and higher steel prices due to tarrifs.

Most articles list the Chevy Impala and Cadillac XTS.. no mention of the Buick LaCrosse which are all on the same/similar platform. The CT6 is state of the art so there is no way its on the chopping block... typical "non-accurate" reporting and I imagine some would call these false reports, "facts" simply because the outlets are considered "reputable". They're incorrect... That goes for the higher steel prices 'due to tarrifs". Tariffs only kick in if imported steel is purchased... so buy American made steel... again, typical.

While I agree with much of your statements - you statement about Tariffs ignores the obvious - that with Imported metals going UP in price due to Tariffs - the local makers have also raised their prices as well. Trump did nothing to prevent that one - which would require a law to do so.

https://ycharts.com/companies/X/price Steel is cheaper today that it was in 2017 but not 2016, because of "dumping".... thus the tariffs are necessary to protect our industry. But thanks Tom...

Oh and though I am a huge supporter of GM, IMO they're not going to make it due to their philosophy of giving "just enough". They don't give great value they just give enough to be barely competitive, so blaming others, like Clinton and Obama do is expected. Mary Barra is a lifer as was her father and she is not the right person to run this company, and change the culture, not to mention she was essentially appointed by the previous administration.....

Original article I read said the Buick LaCross dies in March 2019. Makes sense. All the large FWD cars, Cruz and Volt.

The industry faces hard times from various fronts with great uncertainty and this is either an effort to shore up the GM ship beforehand or a sign of desperation. In any event not likely enough with greater cuts coming. Wouldn't suggest anyone have any of their retirement funds in GM or Ford...sad to say, though not unexpected based on long term downward spiral and recent history.

Just read in Automobile Magazine the CT6 IS being discontinued, if true that’s a shocker...

The CT6 has always been dead for sales, so that's not a shocker.

@MD Why didn't it sell?

I think it was $20K overpriced. It also had a DUMB name. People can't tell a CT6 from the less expensive CTS. There was nothing special about it in any way. Its dullness is off the charts. A Cadillac should be big, flashy, and fast. It's not a bad car but it's just not unique or special or gotta have in any way.

If they would have called it Elmiraj, priced it at $45K with a TTV6 and an Elmiraj V with the engine out of the Z06 for $65K, it would have sold. It should have replaced the CTS and been much better equipped than similarly priced midsized rivals.

While I agree the CT6 isn't exactly what it could have been, it was a very good effort, I mean, Tom bought one. I'd buy one if I was in the market, I really like it especially with the refresh, but its too big for me. I like the car and the way it was built is very cutting edge. However this is classic General Motors come out with something and make it ehh... then if it doesn't sell, kill it. There is no legacy and no longevity, no "lets get it right the first time and if not, fix it". The Allante was a good example, the XLR as well... I cant stand how this company is so short sighted. The name thing absolutey sucks as CT6 says nothing about the car or the buyer, only where it fits in the line up... at this particular moment. Hopefully the new cars the CT5 and not sure what the other will be called will utilize the build technology of the CT6. The short sightedness of not having a Cadillac version of the previous Buick Enclave which lasted for 10 years is simply incompetant especially when the Saturn version died. I think this company is once again in trouble and thats very disappointing.

@xjug1987a - Absolutely. A Cadillac version of the Enclave would have been a hit. More in keeping with the X5, GLE, Range Rover Sport competition and something mid size and more sophisticated in its look and feel than the truck based Escalade.

The Cadillac Enclave is coming in the stupidly named XT7. It will be a stopgap at best. The Aviator will simply be better. The Equinox shines through on the XT5 far too much.

I am sure if Obama were still around he would offer GM another bailout. The company has had a long history of inept executives and many upset about the original bailout have never come back to GM.

I think we should wait and see that GM will do, there's a lot of consolidation going on with US automakers. Ford almost did the same thing but they didn't have massive job cuts that I'm aware of. But it really comes down to mismanagement of funds and overall outlook of industry by GM executives.

There was so much hype with the volt, keep in mind car makers were already moving AWAY from hybrids and pouring money into going full electric. Ford co developing with VW on EV's was a smart move, I think ford was is thinking more long term where the markets were heading. Sad to see mid size cars going to foreign automakers, but I think as the companies roll out EV's midsize cars will make a comeback in the distant future.

This was also a failure of the Trump Administration. The tariff's will bleed US automakers and home builders, in the coming months we will see the damages done by these policies. Cry and moan all you want. Numbers don't lie.

First most people now want SUV's and Crossovers. Second the perception is right or wrong that the Japanese and Koreans can make a better product when it comes to sedans and compacts then American manufacturers. Third due to the wave of electrification within the next 3 to 5 years there will not be an issue of high gas prices with larger heavier vehicles. Battery technology is quickly changing. I read today that Porsche has developed an 800 Kilowat battery charger that can charge 80% in 15 minutes, over a 600 mile battery range and over an extra 62 miles of range in 4 minutes. VW will have a 23K EV with over a 250 mile range by 2023. Forth GM is acting quickly so it does not put itself in a situation like 2009 when it was too slow to act for changing market conditions. So all those people that bought into the Trump Coolaid of more jobs for Americans are now going to feel the pain. Finally GM lost a billion dollars on the Trump tariffs. That may have sped up their decision to make this drastic change.

Tariffs are not hurting domestic built vehicles, they were put in place to PROTECT American industry and jobs. President Trump is a businessman vs most politicians who are inept lawyers or worse, unaccomplished poser community organizers, or worse than that crooked incompetent politicians who are married to a degenerate impeached expresidents. The only Kool-Aid drinkers are Hitlary voters...

And “IF” (zero proof, just an anti President Trump comment) GM lost $1b on tariffs that’s incompetent management... which IS their biggest problem. Especially for a company run by bean counters...

President Trump IS NOT a businessman or at best not a very good one. He believes in old school manual labor so to protect American jobs. Reality check. Major large corporations are automating. Second Tariffs will ultimately push the price up for all goods and services. It is expected that the increase in steel will cause the price of most vehicles to go up in price from 3 to 25% depending upon the model.One reason that GM is cancelling the Cruze is most likely because they can make a lot more profit on Crossovers and SUVs/Trucks.

This is really disappointing, especially for Cadillac.

I understand what they're doing, from a business standpoint. But from the perspective of trying to build a global-class luxury brand, it's poisonous.

How is this disappointing for Cadillac? The CT6 is dead for sales.

Bean counters? Most of GM upper management are 20+ year veterans for GM. Barra has been with GM since the 80's, her first management role was running the Detroit hamtramck plant. Whatever the situation is in management, the company has been hit hard by tariffs. Proof is in the numbers. GM has been profitable up until tariffs and a gradual slowdown of sedan sales. Problem is we can sit here and make Trump vs Hillary arguments (irrelevant), but the reality is that jobs are lost and the car industry in drastically changing. In the long run, I'd like to see a world where US automakers have a majority of the global car market, and we have to go back to what made these companies the leaders, innovation. That will require automation and EV technology, but we are lagging behind. Even with automation, cost of materials will effect the bottom line.

I build homes for a living, and I can tell you that my costs have gone up almost 20% in the last 2 quarters. Material prices are going up and they are becoming harder to source. The tariffs are hitting major industries, the car companies will be the first to feel the hit and not the last.

The typical story, build plants outside the US then rationalize excess capacity by closing US plants.