GM Shares Halted

[Boomer]

GM's stock halted for news, after Reuters report of production halts and job cuts.

the automaker plans to stop production of several low-selling cars and slash its North American workforce.


https://www.reuters.com/article/us-g...-idUSKCN1NV1NB

[Busa Dave]

Yes GM may have more issues than we know about. It will all come out in the near term. Am waiting to get the full disclosure on this.

Will be very good news if GM does this right and can increase profitability and Cash Flow. Ford will be next IMHO to go down this path.

[Boomer]

"GM plans to halt production next year at three assembly plants - Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said."

CT6?? Thats a shock to me. They just went thru a great fanfare announcing the CT6-V with its new 550 HP DOHC engine. The CT6 was on my buy list for the 2021 MY

What are they gonna do with the DOHC since Cadi now won't need it for the CT6? They can't just dump it after all the development cost etc. Maybe it will now be the C8 engine!!!

https://www.caranddriver.com/news/20...-and-info-news

[meyerweb]

Some more info from the Washington Post:

GM to lay off 15 percent of salaried workers, halt production at five plants in U.S. and Canada

Amid global restructuring, GM announced Monday it would reduce its North American production and salaried and executive workforce.

The Detroit-based automaker said it would not be allocating any production to plants in Oshawa Assembly in Ontario, Lordstown Assembly in Ohio and Detroit-Hamtramck in Michigan after December 2019. It will also stop allocating production at propulsion plants in White Marsh, Md., and Warren, Mich., after December 2019.

These changes are part of GM’s efforts to focus its resources on self-driving and electric vehicles, as well as more efficient trucks, crossovers and SUVs, the company said in a statement.

The company also said it will cut 15 percent of its salaried workforce, laying off 25 percent of its executives to “streamline decision-making.” GM also said it will close two plants outside North America by the end of 2019. Those locations have yet to be announced.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” chief executive Mary Barra said in a statement. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

The company said it expects to save $6 billion in cash as a part of the restructuring. Wall Street applauded the news, with GM’s stock climbing more than 7 percent following the announcement.

But Ohio Sens. Rob Portman and Sherrod Brown both slammed GM’s decision to shut down the Lordstown plant, shaming the company for poor treatment of its workers.

“GM owes the community answers on how the rest of the supply chain will be impacted & what consequences its disastrous decision will have,” Brown tweeted Monday.

https://www.washingtonpost.com/busin...=.0bf49c6cecb1

[Busa Dave]

Pretty much puts the nail in the coffin for continued production of the C7. GM is looking to save every dollar it can so bye bye and out with the old an in with the new. It is all about $$$$$'s one of my favorite sayings. Just got off the phone with one of my friends who was looking at a Cruze for his daughter---no more.

Looks like GM has decided to go with the "chain saw" on the restructuring rather that small strategic periodic cuts. Very Very interesting and hats off to Mary for being able to pull this off! Hopefully it will pay off in the future!!

[Busa Dave]

"GM plans to halt production next year at three assembly plants - Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said."

CT6?? Thats a shock to me. They just went thru a great fanfare announcing the CT6-V with its new 550 HP DOHC engine. The CT6 was on my buy list for the 2021 MY

What are they gonna do with the DOHC since Cadi now won't need it for the CT6? They can't just dump it after all the development cost etc. Maybe it will now be the C8 engine!!!

https://www.caranddriver.com/news/20...-and-info-news

Boomer---never know what they will be scrapping and writing off in this monster restructure--Interesting times for GM. Who knows BG may be partial assembling trucks lol.

[Boomer]

Boomer---never know what they will be scrapping and writing off in this monster restructure--Interesting times for GM. Who knows BG may be partial assembling trucks lol.

Yea but, since the expectation is the C8 will have a new DOHC it sure seems logical now it would be an adaptation of the Cadi developed DOHC "formerly" intended for the CT6-V. Also considering the timing (CT6-V spring 2019 availability), it would seem the DOHC could be the "base" C8 engine for the 2020 ME.

OTOH, I am far from an expert in car company corporate restructuring decisions and processes.

[MidEngine]

Thankfully we are pining for a mid engine Corvette, nor a Chevy Cruze. Or a Chevy Impala, or a CT6 sedan, or a Buick LaCrosse.

[Boomer]

Thankfully we are pining for a mid engine Corvette, nor a Chevy Cruze. Or a Chevy Impala, or a CT6 sedan, or a Buick LaCrosse.

Till about an hour or so ago, I was also pining for the 2021 CT6-Vsport. Oh well, now what am I gonna do. Guess I'll figure that out.

[Boomer]

Looks like GM has decided to go with the "chain saw" on the restructuring rather that small strategic periodic cuts. Very Very interesting and hats off to Mary for being able to pull this off! Hopefully it will pay off in the future!!

GM shares up 6% on reopening so looks like folks are betting on that.

[John]

Also the Volt is going away — though the Bolt is continuing as are the coupe versions of the CT6.

[Boomer]

though the Bolt is continuing as are the coupe versions of the CT6.

Did you mean CT6? I read it as the CT6 is going away.

[John]

Details, as we all know, are breaking by the minute, but what I read is that whereas the CT6 sedan is going away, the CT6 coupe is staying. Is that latter info is going to change in the next couple of hours?

However, if they are closing the plant that makes the CT6 sedan, doubt that the CT6 coupe is going to be going to be made somewhere else — for where could that be?

[Boomer]

Details, as we all know, are breaking by the minute, but what I read is that whereas the CT6 sedan is going away, the CT6 coupe is staying. Is that latter info is going to change in the next couple of hours?

However, if they are closing the plant that makes the CT6 sedan, doubt that the CT6 coupe is going to be going to be made somewhere else — for where could that be?

Interesting. I didn't see that coupe/sedan differentiation.

[John]

Official GM Press Release:

General Motors Accelerates Transformation

2018-11-26

• Transforming the global enterprise to advance the company’s vision of Zero Crashes, Zero Emissions, Zero Congestion
• Taking cost actions and optimizing capital expenditures to drive annual run-rate cash savings of approximately $6 billion by year-end 2020

DETROIT – GeneralMotors (NYSE: GM) will accelerate its transformation for the future, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, capitalize on the future of personal mobility and drive significant cost efficiencies.

Today, GM is continuing to take proactive steps to improve overall business performance including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce. These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

Contributing to the cash savings of approximately $6 billion are cost reductions of $4.5 billion and a lower capital expenditure annual run rate of almost $1.5 billion. The actions include:

• Transforming product development – GM is evolving its global product development workforce and processes to drive world-class levels of engineering in advanced technologies, and to improve quality and speed to market. Resources allocated to electric and autonomous vehicle programs will double in the next two years. Additional actions include:
  • Increasing high-quality component sharing across the portfolio, especially those not visible and perceptible to customers.
  • Expanding the use of virtual tools to lower development time and costs.
  • Integrating its vehicle and propulsion engineering teams.
  • Compressing its global product development campuses.
• Optimizing product portfolio – GM has recently invested in newer, highly efficient vehicle architectures, especially in trucks, crossovers and SUVs. GM now intends to prioritize future vehicle investments in its next-generation battery-electric architectures. As the current vehicle portfolio is optimized, it is expected that more than 75 percent of GM’s global sales volume will come from five vehicle architectures by early next decade.
• Increasing capacity utilization – In the past four years, GM has refocused capital and resources to support the growth of its crossovers, SUVs and trucks, adding shifts and investing $6.6 billion in U.S. plants that have created or maintained 17,600 jobs. With changing customer preferences in the U.S. and in response to market-related volume declines in cars, future products will be allocated to fewer plants next year.
  
  Assembly plants that will be unallocated in 2019 include:
  • Oshawa Assembly in Oshawa, Ontario, Canada.
  • Detroit-Hamtramck Assembly in Detroit.
  • Lordstown Assembly in Warren, Ohio.
• Propulsion plants that will be unallocated in 2019 include:
  • Baltimore Operations in White Marsh, Maryland.
  • Warren Transmission Operations in Warren, Michigan.

In addition to the previously announced closure of the assembly plant in Gunsan, Korea, GM will cease the operations of two additional plants outside North America by the end of 2019.

These manufacturing actions are expected to significantly increase capacity utilization. To further enhance business performance, GM will continue working to improve other manufacturing costs, productivity and the competitiveness of wages and benefits.

• Staffing transformation – The company is transforming its global workforce to ensure it has the right skill sets for today and the future, while driving efficiencies through the utilization of best-in-class tools. Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making.

Barra added, “These actions will increase the long-term profit and cash generation potential of the company and improve resilience through the cycle.”

GM expects to fund the restructuring costs through a new credit facility that will further improve the company’s strong liquidity position and enhance its financial flexibility.

https://media.gm.com/media/us/en/gm/...v/1126-gm.html