When General Motors announced its restructuring plan that proposed closing five North American factories while discontinuing several models such as the Chevrolet Cruze, Volt, Impala, and Buick LaCrosse, critics from both sides of the political aisle came out swinging at the Detroit automaker. Current employees and the United Auto Works union also spoke out in both protest and dissatisfaction about the news. Politicians made vague threats to hurt GM’s bottom line while angry workers at GM’s Oshawa plant in Canada walked off the line.
News of General Motors’ proposed plans came after Michigan elected a new governor. Gretchen Whitmer took office a few weeks before the North American International Auto Show that kicked off in Detroit, and she’s now at the forefront of handling the fallout from GM’s decision.
“There’s a lot of people who are very worried, and I hear them, I feel it, and I’m going to be doing everything that I can to make sure that hardworking Michiganders have got good jobs right here,” Whitmer said, according to the Detroit Free Press, as she toured the floor of the North American International Auto Show.
An initial meeting between General Motors Chairman and CEO Mary Barra and the newly-elected governor is in the works, according to Whitmer. The governor has met with Ontario Premier Doug Ford; however, according to the Free Press, “the fate of GM workers facing the closure of plants in the U.S. and Canada apparently did not come up.” Whitmer was cautious to “castigate” anyone regarding the news until she learns more about the situation.
“Michigan jobs are first and foremost on my mind, making sure that the investment is here, and that people who are … being displaced or without a job are relocated as quickly as possible, and that we want them to continue to make their investment in Michigan,” Whitmer said.
While Whitmer appears sympathetic to disgruntled workers upset at the proposed plant closures, there’s likely little she can do to stop General Motors from following through with its plan. Yes, the automaker has to negotiate the details with the UAW; however, at the end of the day, General Motors is a private business that has to please shareholders.
Comment
This is like a dance and game of poker all in one.
The cast of here consist of the UAW, GM and Political folks.
What happens is they all go out and play their part. The UAW the victim, the political people as the caring and I feel your pain people and then GM.
Once they stop the dance they sit down and play a few rounds. GM hold the cards close and only shows you what they want. The Union will see some of the cards and call. they go back and fourth with the political people sweetening the pot.
Once they get to where it makes sense GM lays the cards down and takes the pot. They buy the UAW a drink and they go build CUV’s.
Now on the other hand due to poor behavior Unifor is ban’d from the table.
GM will place as many programs in American plants as they can.. Not everything financially will fit but the more expensive and higher volume models will be the best to fit.
When it is all said and done the American plats will be at higher capacities and they will be building more models than they are now. Will all the plants come back… No as they all are not going to be needed. Some will remain idle for future negotiations for work to keep things competitive.
The plants in the mid west do hold an advantage being close to many of the supplier plants but the Unions need to negotiate for the contracts and I expect they will. They have learned that if GM does well they do well.
There is a lot of GM product coming and it has to be built some where and it is not all going to China.
Also the exporting of products will increase with the addition of more RHD models like the Acadia and the coming new Alpha 2 products.