General Motors has confirmed the company has discussed potentially selling some of its unallocated assembly operations to Tesla Inc.
Speaking at an investor conference in New York, GM CEO Mary Barra said there had been talks with the upstart electric automaker, however, Tesla isn’t really interested in dealing with the UAW.
“Tesla is not interested in our GM workforce represented by the UAW, so really, it’s a moot point,” Barra was quoted in answering analyst questions during the General Motors Capital Markets Day call earlier this month.
In case you forgot, GM will be idling production at five North American plants in 2019, including well-known facilities like Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly in Michigan, and Oshawa Assembly in Canada. The ultimate fate of the facilities remains unclear, the plants could potentially close, but those actions are still subject to union approval.
Until Barra’s comments, neither company had publicly acknowledged a formal discussion had taken place. Tesla’s outspoken CEO, Elon Musk, had previously voiced interest in purchasing the plants, but now it turns out Tesla doesn’t want GM’s plants after all. Tesla and the UAW have had a fiery relationship in recent years, as the union has tried to organize workers at the company’s Fremont, California assembly plant. Itself a former GM facility once shared with Toyota.
Last year, the union filed a litany of unfair labor practice charges with the National Labor Relations Board as part of its effort to organize the electric automaker’s assembly operations. The complaints were paired with reports of poor working conditions at the plant, which amid a changing political environment, could ramp up pressure on Tesla as it deals with scaling its production process to mainstream levels.
For GM’s part, despite cutting jobs and slashing products, the automaker isn’t turning its back on America, with Barra announcing this week that more US-built products coming down the pipe.
Comments
No kidding.
He was never going to any of these union plants.
Now Musk is laying off people so they need to just figure out what they have now.
Why would he?
If they close he will pick one up if he actually wants one for Pennies to the Dollar like he did the Fremont, CA plant.
Plus he is building up his Gigafactory still and starting one in China as well. We shall see.
But on a side note, hopefully this is a negotiation play by GM going public about this. IF not, these factories will for sure close then. GM workforce is unfortunately going to pay for the mistakes by GM on building just good enough cars and it finally caught up to them. It is so disheartening to see.
Hopefully GM is just trying to weather the storm for the upcoming EV onslaught in the Marketplace. But who can honestly really trust GM to get this correct.
Chevy dealerships are talking people out of the Bolt. I have witnessed it. Not just at one Dealer either. I was trying to help my one friend and she ended up ordering a Model 3. The crazy thing is she preferred the Bolt as it was smaller and had a Hatch.
This is why I don’t trust GM to succeed in the EV game. Dealers simply hate selling them. And of course they do. They will probably never see that Owner again until it is time to get another one or if an electrical issue arises. Like power windows and seats mostly or Infotainment screens.
Not a fan of Mr. Musk but maybe he is smarter than his twitter feed would make one believe. The UAW and Unifor (in Canada) are equally as responsible for the idling of these plants as GM is. The market called for the closing of plants due to demand decreases in the coming years, and there is a reason it was these plants. Sure you can site the fact they were not allocated any decent moving production but why would you allocate production to a plant that has a workforce so entitled when you could send production to Southern States or Mexico where workers are willing to work hard, and not demand compensation of $30 an hour to screw bolts into a hole.
30 bucks PLUS the many benefits AND mounting legacy costs some of which GM weaseled out of in bankrupcy, etc. etc. Who the hell would be stupid enough to buy into that? These unions have long outlived their welcome and have fostered a very entitled workforce… no send the hatemail. Tesla may not be in a position to buy plants now but lets see what a couple years brings… certainly lower per sqft costs.
Then why are cars that are coming out of Mexico and China not priced lower than the ones coming out of Ohio and Michigan?
You have to make up the profit margin somewhere. I’d bought a vehicle made in Mexico and the fit and finish is far superior to the ones made in the states. Union works take no pride in their workmanship, to them it’s only a paycheck. Union workers are like overpaid welfare PPL. They feel it’s owed to them. Union workers complain about the jobs going out of the country but they have no one to blame but themselves for being so greedy. Someone that sweeps the floor making $30+ an hour for pushing a broom ( or riding around on a mechanized floor scrubber. Now that takes real talent. Union janitors in our public schools make North of $30 an hour and you wonder why our taxes are so high.
Not sure why y’all are getting a lot of downvotes but the automotive industry really is unique. I think most unions have long served their purpose just like many 20th century American institutions. Different times call for different policy and rules. Early unions made since as it was more about worker rights and not allowing us to get killed on the job. I am grateful to those who fought for that and those who lost their lives or got some crazy health impact from their job. From the seeds the sowed the fruit is good now so unions aren’t needed. They are just really blackmail now. I work for a consulting engineering firm and if our clients don’t want to build or renovate we don’t have work. It is as simple as that. We can’t make a rule that says well umm since we did work with you before you have to always build something or always renovate…. That mindset is an infinite growth mindset. The automotive industry is unique in that these auto companies are so beholden to their workforces that they can’t really response to the market in a fast enough time. We can’t force people to buy cars. The market dictates what jobs are available so no ones jobs are really safe even for those with “careers.” The average person forgets this.
I agree, Unions were about safety and protecting their workers. Then the Federal Government created OSHA and the MSA for worker protection. Like you say it has become a blackmail market for them to see how much they can squeeze out of their employers. I work in the construction business and all too often I see poor workmanship from the Union contractors employees. If they were as educated as the Unions want you to believe the employees would speak up when they saw something that wasn’t correct. It is quite the opposite they’ll just install it and let the next man deal with it. Non Union contractors will at least listen and learn. I can’t say the same thing about Union workers because they already think they know everything.
If you build a house on a crooked foundation all you’ll have is a crooked house.
You are right, us damn Yankees up here in the Upper Midwest do not know how to work. That is why FCA is going to drop about $3 Billion this year into its Detroit area operations to expand production.
Anyone who think all auto plant workers just shoot screws into holes all day have never visited an auto plant.
Not just screws. You take breaks, too. And naps. A monkey can do what you do. Yes you deserve fair compensation for what you do, but you make waaay too much for what you do.
So does Barra and her $22 million salary. but I do not hear too many people complaining about that. Considering the way she is running GM into the ground, I would take the monkey.
Salaried folks don’t take breaks and two-hour lunches?
Regarding the $30 an hour comment, only a small percentage of the employees in those plants make wage, and that is probably skied trades that have 20+ years seniority. Most make closer to $18 an hour. Regarding pushing brooms, most janitorial work was outsourced to third parties after the bankruptcy. Most make about $10 an hour.
BTW, I do not work on the line nor am I represented by the UAW. However, all my vehicles were UAW/Unifor made and I could not be happier with them.
I don’t believe Barra.
Musk said he may be interested in one of GM’s closed plants knowing full well they are UAW/Unifor represented. I do not think that there were any conversations on the part of GM and Tesla, and if so, GM did not really do a good enough job of selling the plants.
The reality that is more likely is that if GM and Barra cannot be successful with these plants, they do not want a competitor to be successful with them even if that means permanent job losses and economic destruction of communities.
Just yesterday, I watcked a video on YT by an
old school mechanic ,Since I am old school myself I give this guy some attention. His initials :SK. This guy is pretty intelligent and a bit eccentric, he has wielded spanners for 51 years. I have already started to form an opinion regarding The Tesla/GM connection. Since hearing SK my opine has quavered. Now, China has made a move to EV,
as it is the vehicle presentation showed compact size as a starter, with possibly larger vehicles to follow. Lookout for the EV market to be introduced to low cost competition. Tesla maybe safe for awhile , in the meantime Mr Musk could be tied up with labor and quality issues. Don’t do it GM!
So let met get this straight—- A manufacturer has to have the approval of the UNION before it can close down it’s non profitable plants . Maybe the UAW should look themselves in the mirror and see if maybe their high demands are the cause.
No, it is the incompetent piss poor “leadership” of Machete Mary and her team that caused the plants not to be profitable. The UAW and their members are the ones paying for her mistakes so she can keep on cashing those $22 Million checks.
The day I see a Union worker do quality work and an honest days work to boot, my Dad would rise from the dead. In my 50 years of working the Union labor force is getting lazier by the day, they used to have pride in their workmanship. Those days are long gone. Funny it take two Union workers to do what one non-union worker can do and with better quality.
All Musk said is “Tesla would consider buying”…Hell, if GM offered selling your or I the plant for $10K, we’d “consider” buying it…Mary is saying its a moot point because Tesla would employ its own employees…There is no possible way GM would sell the plants a price Tesla is willing to pay…
Barra just comes across as a total hypocrite. “‘Tesla is not interested in our GM workforce represented by the UAW, so really, it’s a moot point,’” Barra was quoted. Really Machete Mary? And you are interested in them and their welfare?
It isn’t the union, or the idea of a union per se, it is the attitude of the union and the workers towards the company. I once worked at a place that was unionized, and while it was in business for over 60 years, there was never a strike or a lockout. The company and the union worked together all that time to keep the company viable and the workers well paid. Too bad the financial meltdown scared the bank into putting us out of business.