There’s been a lot of focus on the GM Lordstown plant in Ohio that built the Chevrolet Cruze. Vehicle production ended earlier this month, though stamping operations for service parts could continue through June. U.S. President Donald Trump called on GM CEO Mary Barra to hastily begin production of a new product at Lordstown or find a company that would bring new jobs to the factory. According to a new report from Bloomberg, the United Automobiles Workers Local 1112 made $118 million in concessions in 2017 to save the factory only to have GM announce in November 2018 that it’d like to idle the plant indefinitely. That’s not sat well with the current Lordstown employees.
The UAW agreed to a “Super Competitive Operating Agreement” that allowed the Detroit automaker to bring in low-wage temp and contract workers to work in the plant. The goal was to save money. But that wasn’t enough to save the GM Lordstown plant. As Cruze sales fell, GM began eliminating shifts. First, the company cut third shift and 1,200 jobs, only to later cut the second shift and another 1,500 jobs. Other concessions included merging UAW Locals 1112 and 1714, which saved $3 million, cutting skilled tradespeople in half to 130, allowing the company to contract out skilled labor to contract works, and much more.
The goal of the concessions was to get the Cruze back into the black, which would give the GM Lordstown factory a much better opportunity to get a new product, according to Dan Morgan, the shop chairman of Local 1112, who spoke to Bloomberg. The union signed the concessions deal in late July 2017, which would begin in January 2018. Morgan said the concessions were unpopular, adding that Chevrolet’s sales and marketing group was supposed to advertise the car more aggressively. That did not happen, according to Morgan.
For many Lordstown employees, GM’s actions since signing the concession agreement are despicable. The local UAW and employees gave the automaker everything it wanted to save the plant from a disastrous future only to have production end earlier this month. This has left many workers in limbo, wondering if they should take a new job at another GM factory or wait to see if GM allocates a new product to the plant when negations between the UAW and GM begin later this year. Regardless of the outcome, the last 18 months will leave a bitter taste in the mouths of many Lordstown employees.
Comments
Lordstown UAW Local gave GM EVERYTHING they asked for to keep the Cruze rolling off the line. In October the plant became profitable off one shift. The reward; the plant went into “Unallocated” status, 1000’s of job losses and the Cruze plant in Mexico was retooled to assemble the “El” Blazer. No excuse, BLAZER SHOULD BE BUILT IN LORDSTOWN!!!
GM seems to have sabotaged Cruze (as well as the Sonic in Orion) by importing the hatchback model that could have easily been built in Lordstown. Once the Spark was IMPORTED from South Korea, that is when the Sonic sales slipped and Orion lost a shift as well.
So you are stating that while the Cruze was still in production in Lordstown, GM should have forcefully placed production of the Blazer there?
Just wondering how you came to this conclusion. Because the decision of where to produce the Blazer was made well before the Cruze was cancelled. That means tooling was ongoing in Mexico well before the fate of the
Cruze was decided.
Why do we keep harping the same thing here about the Cruze and the Blazer. We all here should know how the Auto Industry works.
Be upset at GM like I am that they offered a lackluster effort in the current Cruze which is the ONLY reason they “Unallocated” the Lordstown plant to begin with. The Lordstown plant is huge and needs to be allocated either One product that can be at 200K unites per year or be split into two product lines that can reach that. So again what Product was GM supposed to magically place into the Lordstown plant on a drop of a hats notice?
I am asking because every Auto Pundit out there cannot figure it out (Including GM Themselves) but some here on this site have. Just place Production of the Blazer there even though that was allocated to the plant in Mexico a year before the car was even produced. I personalty am baffled and would love some insight.
Nobody wants to see people losing jobs. But can we at least be realistic with the jabs we throw out to GM.
Start asking for better vehicles and zero excuse execution like I have been for the last three years on thios very site. I am done making excuses for the lackluster interior materials and engine choices. GM needs to become better or more plants will unfortunately close down.
The move to Lordstown would have delayed the Blazer to market.
It would not have fit the paint shop in Lordstown while Mexico used to paint Hummers H3 and other larger models.
And it would have cost more to export the model to !exico and Central America where it is also sold.
There are many more factors than could and should.
The H3 was built in Shreveport off the previous Colorado/Canyon platform.
Sorry my mistake but still the plant in Lordstown was not ready to receive a new model since they just closed and the Blazer is already in production and at dealers. It also still would not help with exports south. Nor the fact the line would need more money and time to be changed over.
I thought Lordstown was a very large plant. Blazer planning must have started over 2 years ago on the CH1 platform that was already in production elsewhere. You’re saying you can’t retool part of the plant while the other half is running? If Cruze was dying, just import hatch and sedan from Mexico while Lordstown was re-tooled. Barra in an interview said most of Blazer’s parts come from the US, so the shipping cost excuse is BS. Not to mention I don’t think many 50K+ SUV’s are sold in LATAM countries. Cruze is still produced in Brazil.
If you think all Cruze production couldn’t have been moved to Mexico (in turn saving the model) and Lordstown retooled in time to bring the Blazer to market as a 2020 model (still way behind & playing catch up in the segment) I have a Mexican made H3 to sell you…
I can understand the economics of GM discontinuing the Cruse. But in light of the concessions made in good faith by the union, if I were GM I’d try to put this plant back to work with the next new model they come up with. Despite the stigma attached to autoworkers or the UAW, auto assembly line work is hard with no fooling around lest quality suffer.
I hope GM does the right thing in this case ASAP.
There is no good faith with uaw. Gm is right not to put all eggs in USA basket for production.
Sorry, GM. Your respect for the country that saved your cojones is obvious, not at all. Our 2016 ATS is the last GM product we will buy. Never bought a Toyota or Lexus. Good chance next vehicle will be one of them. At least we know where they stand.
There is no good faith with uaw. Gm is right not to put all eggs in USA basket for production.
Oh ok I get it.
So you support Foreign Automakers taking advantage of mostly Southern States to produce vehicles on our Homeland to sell to our Nation all while being allowed to use NON UAW workers and getting crazy Tax subsidies from our States?
Yeah that’s better than our Big Three trying best they can to keep offering their UAW workforce great Pay and great Benefits.
I am floored at how our very own are getting treated here while we throw praise at Foreign Auto Makers taking advantage of our Great Workforce and State hand outs.
I am baffled. I am NOT in any Union. I do not do a job that is anywhere near getting a Union but I am sickened that our Big Three get dragged through the mud while trying to keep as many UAW jobs in this country as possible.
I stand with our Big Three and my next Car purchase will be from an American Car Company once again.
GM should be ashamed of themselves with what they did to the Cruze and the workers who build them at Lordstown. REALLY hard supporting GM with the treacherous and short sighted management team they have…
GM after all the goodwill equity they got over 100 years building some of the most iconic and finest automobiles. After being a good national citizen making armaments for defense of the republic for two world wars, have descended into being a ‘global corporation’ so their home market is now of secondary importance.
Evo69
1.GM still has 10 US assembly plants More than Any other company.
2. Most of the vehicles they sell around the world were developed in the US
3. It is investing heavily in future technologies.
Mexico got the Chevy Blazer
The US got the Cadillacs.
Peter:
1) If they walk away from Lordstown and DHAM, they will have one more assembly plant in this country than Ford (Chicago, Flat Rock, Dearborn, Michigan Assembly, Louisville, Kentucky Truck, Ohio Truck and Kansas City which has two lines).
2) There is a big difference between having a cubicle farm that designs a vehicle to be made elsewhere and the massive industrial infrastructure needed to bring it to the market. The latter provides exponentially more jobs and tax base.
3) Investing in future technologies that most people don’t give a crap about. People do not care for Barra’s triple zero vision or all electric future- things that will not happen for decades. They care about what they can walk in the showroom and buy today. These future technologies have come at the expense of design and engineering and cheap interiors that way behind the competition.
My family and I have always bought GM American Union made cars. I purchased a 2018 Cruze and love it. After this we will not purchase anything from GM. Shame on you for betraying American Union workers. Enjoy Mexico.
Greg
If you want a Vehicle made by American Union workers your choices are: GM, Ford or Chrysler.
and THEY ALL BUILD VEHICLES IN MEXICO!
A large amount of the Asian crap you see on our roads was also built in Mexico.
You mean the Asian “crap” that has spanked GM to the point they don’t know which way is up anymore? Toyota, Subaru, Nissan, Honda, Hyundai all make the majority of their US sold cars in the USA. And you can thank them that your beloved GM garbage lasts a bit longer now than it did in the 70s and 80s.
And here is the main point that is lost on you for reasons that are not easy to follow: GM is an AMERICAN company supported by AMERICAN taxpayers. The Asian companies owed us nothing and are still building here. If you think loyalty means nothing, then you’re the type of person GM is banking on.
Big difference: Ford is not closing plants and FCA is actually building them.
Peter G.: “Well they did it so GM can too”…
What are you, a 13-year-old?
Magirus has a more reasoned, factually based, and mature response. Learn from him/ her.
Magirus is full of sh!t
Honda is the only Asian company that builds the majority of vehicles it sells in the U.S in the U.S. As car sales decline, and More HR-Vs coming in from Mexico. The number of vehicles Honda builds in the here is declining
Toyota/Mazda is getting Billions from Alabama to build a new factory. Meanwhile Toyota added a 3rd shift in Tijuana Mexico to building Tacoma’s , and Cutting shifts in Georgetown KY.
Mazda hasn’t built a vehicle in the U.S. since pulling out of Flat Rock Michigan during the Great Recession.
Nissan was the number one exporter of Mexican Vehicles until it’s sales tanked last year. Now it’s focused on bringing in Mitsubishi’s from Japan.
BTW- After years of growth in 2017 Mitsubishi shut down its factory in Normal Illinois.
Subaru-builds the Outback, Ascent, Legacy & Impreza in Lafayette IN. Outback, Legacy & Impreza sales are falling. The hot selling Foresters & Crosstrek come from Japan. Until recently that Subaru factory used to build some Camrys They don’t anymore.
The auto market is rapidly changing.
Truck, Full sized Van, Crossover/SUV & EV sales are rising. Car, minivan & standard hybrid sales are falling. When the dust settles GM won’t be the one with empty factories.
Exactly. People do not want to do Homework they just want to see Tweets and or News and Bash GM while not understating how the auto Industry works.
There are plenty of UAW Made In America vehicles to chose from. NON however come from foreign makers though. So by all means have at it.
If you want to be mad at someone be upset at our very own Government that doesn’t want to stand with the UAW. Why can’t the government force all of the Foreign Automakers to utilize ONLY UAW workers as well?
Why isn’t anyone upset or outraged at that?
Do we realize that Toyota, Honda, and Nissan are allowed to build cars on our Home Turf while paying much less for their workforce and still allowed to sell them in our Nation? And where do you think those profits go?
The UAW and President Trump have been doing everything to save good quality American manufacturing jobs. GM on the other hand seems bent on outsourcing these jobs and plants to other countries even while “foreign” companies and Ford are re-investing in American plants and jobs.
And you wonder why unionized workers voted majority Trump and have increased their support for him. At the same time GM has lost a huge amount of sales, profit is down, and the stock not doing well. Doesn’t take a genius to know who is right and who is wrong in this situation.
Not to get Political at all but what exactly has this sitting President or any of the lets say last five done for Union Jobs exactly?
You do realize most and especially the sitting President are 100% against Union jobs correct?
Have you ever heard the sitting President say man I am going to put every Foreign Auto Maker that builds cars in this country Unionize? I sure have not. And neither has anyone else.
Do some research and see where union jobs in this country stood at in the 1970’s compared to today. What there’s no more Factories in this country?
Do research. Stop with this whole GM Bashing simply b/c someone is Tweeting about it.
You want to help the UAW and bring back union jobs, start demanding it from Politicians. BOTH SIDES.
Some of you just don’t get it. GM needed to be bailed out largely because they were too slow to make moves like this to cut costs.
Trump and some of you here are determined that GM should make those same decisions again, which will have the same outcome.
GM’s management is learning from their mistakes. Why are so many people here blind to that fact?
Then explain GM’s falling market share under Machete Mary’s rule.
It is because of unions that GM like many other cars are way overpriced, and piss poor quality. I have a couple GM vehicles and couple Nissan’s. The cost, reliability, quality, and comforts of my Nissan’s far and exceed any GM. You reap what you sow. Glad to see Union jobs going away.
Let’s get to the real root of the problem. The new Cruze is ugly and not competitive with other cars in it’s class, but priced near the top. The last Cruze looked good and sold very very well. I realize car sales are down, but Toyota, Honda and others are selling enough.
I know GM found a new head of design and got rid of Ed W, hopefully going forward visual garbage like the Cruze won’t make it to the market and people will stop loosing their jobs.