Ohio Senators Rob Portman (R) and Sherrod Brown (D) have penned a new letter to GM CEO Mary Barra over the automaker’s decision to idle the Lordstown plant in the state they represent.
Cleveland.com obtained a copy of the letter on Tuesday and published the list of questions in its entirety, and the senators ask GM CEO Mary Barra some tough questions.
Ahead of the letter, Barra met with both Senators Portman and Brown where she said she would keep “an open mind about Lordstown’s future.” However, the automaker has not signaled the Lordstown plant will remain online. In the bombshell November announcement, GM said Lordstown and the Detroit-Hamtramck plant in Michigan would go “unallocated” for 2019. GM cannot simply shut down the facilities, but instead will need to negotiate their closure with the United Auto Workers union.
Reports have shown the UAW’s strike fund at a very healthy level, and leadership said it’s not afraid to dip into the fund, either. But, avoiding a strike is the number one goal.
In the letter, both senators appear to bait GM and Barra into answering why the company cannot afford to retool and invest in the Lordstown plant, but spend money to retool and gear up for 2019 Chevrolet Blazer production in Mexico. Barra has gone on the record with the senators previously to say it would be too costly to retool the Lordstown plant for SUV or crossover production.
GM infamously announced it would build the 2019 Blazer at the Ramos Azripe production plant in Mexico the same day it laid off the Lordstown plant’s second shift. The Ohio senators asked how much GM has specifically spent on a new paint shop for Blazer production at the Mexican plant and comparatively asked how much it would cost to shutter the Lordstown plant or retool it for a different vehicle.
Contrary to GM’s decision, Honda announced that it will build the new Passport in a non-unionized plant in Alabama. The 2019 Honda Passport will compete directly with the 2019 Chevrolet Blazer.
The two senators also asked if Barra would commit to building its future electric cars sold in the United States domestically.
Lastly, lawmakers asked Barra to respond to their letter no later than Dec. 21, and we will update this story should the CEO provide any meaningful response.
Comments
Where were the two senators the last 3 years as two shifts were cut? More lost jobs then vs just one shift.
This is just grand standing now that all the horses are out of the barn.
I smell strikes coming and that would be disaster for an already weak GM under Mary’s leadership. Not to mention she is going to lose against President Trump if she keep causing problems. Unions are supporting the President strongly right now as the economy booms with increased manufacturing investment and jobs, especially amongst union members. Remember, President Trump won the auto manufacturing belt of the U.S. and his approval in these regions has remained strong and gotten stronger in many. Mary doesn’t have her pal Obama to cover for her anymore.
At this point, unless GM changes course I think a strike is unavoidable. I do not think that it was an accident either that Hamtramck, Oshawa, and Lordstown were shuttered. The former two are strategic to the UAW/Unifor, and the third is a political football. Could you imagine the anti- UAW people in the South coming up with a billboard of the gleaming Hamtramck plant saying something along the lines of “The UAW could not even do for its members up the street. What are they going to do for you?” I think GM will be looking for large concessions to keep these plants open and to allocate others with product.
POTUS is the least of her problems.
GM’s executives and board are so oblivious to the political environment in the US that she’s successfully united both parties against GM. Neither Trump nor Obama could really get Democrats and Republicans to work together.
The way this whole thing has been handled is clear evidence that there must be big leadership changes at GM.
Not only are they closing down multiple plants during a period of low unemployment and solid economic news, but GM is abandoning entire segments amounting to hundreds of thousands of sales per year for them. Compact cars like the Corolla and Civic are popular.
Why can’t Chevrolet move more Cruze models? Why is the Charger, Avalon, 300, or Maxima being canceled but the LaCrosse and Impala are?
The market has shifted. It didn’t shift that much.
Everyone is mad at Miss Mary Barra these days and rightfully so. She is destroying GM and everything she does seems to fail. Now she has the ire of President Trump and many Senators and Reps. Not looking good for GM under her command at all.
In other news, I am still waiting on GMA (Sean?) to do a story on China agreeing it will cut 40% tax rate on American vehicles. Another win for President Trump it seems in the trade battle. Sean, you tried to scare, but it hasn’t turned out that way at all. China has come out the loser in the trade way and the U.S. economy and trade wins keep going up. You might our President Sean, but you got to admit he just keeps on WINNiNG…
Everyone on this board knows Sean Szymkowski has a bit of the TDS. lol. Nothing knew. Don’t expect a story on any of the President’s success, which there are many, from Sean anytime soon.
“Don’t expect a story on any of the President’s success”
This ain’t the Onion. The president will need some successes first.
Don’t you worry, GMer, we covered that days ago.
http://gmauthority.com/blog/2018/12/president-trump-says-china-will-cut-tariffs-on-us-auto-imports/
We’re hardly in the business of scaring and picking sides—just here to report the news. Any bias you detect is a poor attempt at gaslighting fellow readers. Keep that stuff to the comment section of your favorite political news organization and pick your poison.
Thanks for reading,
-Sean
GM is cleaning house.
Unfortunately they aren’t cleaning up the real problem in the Ren Center.
the statement about the new honda SUV answers the question. the word is non union.
It’s called GREED
Greed is one thing, but why let foreign car companies build their vehicles without union and obligate domestics with union?? GM simply can’t complete with non union built cars.
I’ve never been a union person, but if the UAW doesn’t go on strike over this, their members should revolt.
The political winds have shifted towards a nationalistic tone in the past few years. The American people are very frustrated over things like this.
The current political environment is so obvious right now. Barra has to know the headlines it would cause to cut so much right now in the US while importing crossover SUVs in profitable segments from China (Buick Envision).
GM is going to get bipartisan hatred from politicians all over the US for this. And they deserve it.
Don’t forget that GM has to negotiate at UNIFOR next year as well. The only plant covered under the master contract other than Oshawa is St. Catherines. A strike at that plant would literally shut down GM overnight.
1) OK, you show a picture of a CRUZE photo at the plant for a big celebration from 2016. I bet that same week plans were set for the BLAZER in Mexico. It take years to set up production for any new vehicle and during the last 3 years buying habits have changed. To change in midway to a final product to assemble, million$ more will be burned to move or change planning before a single vehicle can be built.
2) Ask anyone on the street and ask what is a CRUZE? I’m sure hardly no one will know. Then ask what is a CIVIC and probably most will know. It has been branded into the car scene that cannot go away with always accolades from auto writers? How many names have CHEVY and FORD used in the last 45 years for their small cars. More than I can remember.
3) It started in the 1970’s and auto manufacturer lines will be more automated than ever (did come true) and a big part would be to change production with minimal cost to switch over production. The BIG cheese was that one line could manufacturer different vehicles at the same time. All we have is GMC and CHEVROLET use the same line for the trucks or big SUV’s but that is no more than fenders and door differences. With the power of today’s computers, and a big source of software developers, I don’t see why a manufacturing plant like Lordstown can’t be retooled to build almost any vehicle now and for the future buy just a few key strokes. GM and others should be investing money in this area and instead of trying to beat their chest that our EV is better.
Fire her and her cronies
the membership have gotten so use to those $10000 and $12000 bonus checks, the union will do what ever it take tol keep those checks coming in. It is all about the pocket, GM is lining their pockets with bonus checks and they are looking forward to them now.
A $10,000 bonus check this year means nothing if you do not have a job next year….
For the good of General Motors, this might be the perfect time to fire CEO Mary Barra as she is simply making too many mistakes as Barra had just announced in the past couple of weeks of the number of car programs that will be phased out including the Cadillac CT6 which was very expensive and phasing out a program is essentially flushing $Billions of cash down the toilet as GM shareholders should show their displeasure by phasing out CEO Mary Barra.
To me,it seems like the US auto makers are forcing the public to buy foreign cars. GM and Ford are both retiring their small and medium cars in favor of suvs,leaving us with mostly foreign cars left.Not all people need or want these bigger vehicles. You would think that since we bailed out these companies, they would be thankful to us, but greed is more powerful
I agree. It reminds me of the time that GM announced that convertibles are no longer marketable and announced they would cease making them. This was before the Miata was released.
I’m sure Mary and her cronies will accept their bonus (like they disserve it ) . a typical move by out of touch people screwing their employs and the customers who buy their product when the company can’t afford it but they will always find the money to line their pockets FIRE Mary
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