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[Francis Xavier]

DETROIT – General Motors plans to
shut down its Oklahoma City plant in
the first week of February next year, the
automaker told the plant's employees in
a letter on Monday. The plant, which has
2,000 active union employees, is the first
in a series of 12 facilities GM said it will
close as part of a broader restructuring
effort.
The world's largest automaker has also said
it will slash 30,000 jobs through 2008. The
Oklahoma City plant builds the Chevrolet
TrailBlazer EXT, GMC Envoy XL and Isuzu
Ascender EXT SUVs. "The decision for
this particular plant was volume- and market-
driven," GM spokesman Stephan Weinmann
said. "We just figured the products
are not selling at the levels that we need to
keep the plant up and running," he added.
GM has been struggling with slumping sales
of large sport utility vehicles due to high
gasoline prices, as consumer tastes continue
to move to vehicles that offer better
fuel economy. "Given the market reaction
to mid-size and full-size SUVs this year,
it's only logical to close this plant," Argus
Research analyst Kevin Tynan said.
Combined U.S. sales of the TrailBlazer and
Envoy fell to 319,591 units through November
this year, down 16.4 percent from
the same period a year earlier. Weinmann
said GM will discontinue making the extended
versions of all three SUVs, which
allow for a third row of seats. As GM struggles
with high health-care and commodities
costs, loss of U.S. market share to foreign
rivals and sputtering sales of its
SUVs, many analysts worry that new job
cuts will add to costs that are already too
high.
More job cuts at GM, which has lost nearly
$4 billion this year, would mean more
additions to its "jobs bank" benefit – which
union employees are entitled to under contract
terms. Most workers would spend 48
weeks in "layoff status" – which entitles
them to government unemployment benefits
and a supplemental payout from the
automaker that brings their total payment
to 95 percent of their take-home pay. The
workers would then move into the jobs
bank, which entitles them to their full gross
pay until they are eligible to retire or placed
in another job. GM spokesman Stephan
Weinmann said GM is in talks with the
union to negotiate early retirement packages.

[Guest]

rotting away

[GRL]

They are doing what needs to be done to face reality. They have too much
capacity and too many employees getting paid too much to do too little (I
especially mean the people on those 95% of salary sweet furloughs the union
got them). The overly generous medical benefits have to go, too.

They are also going to have to make more interesting cars and get their
butts in gear with hybrids and diesels. My guess is that the management team
that slept while the S.S. GM started to founder will get the (deserved) boot
before too long.

It will not be easy or pretty, but GM will do it because there is no
alternative. Chrysler turned it around and Harley turned it and even Porsche
turned it around. GM will do it, too. It's amazing how a near-death
experience like GM is having focuses your attention.

- GRL


<gosinn@gmail.com> wrote in message
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[The Adams Family]

I could go on and on about the waste in the GM camp. I work at several auto
makers facilities as an outside vendor. Everyone would be surprised how many
people you find just sitting around sleeping. I don't mean for just minutes,
but sometimes hours. Then if you ask them to help you, they act as if you
are bothering them. I can very well see how GM can't afford to keep them
especially in these rough times!


"Francis Xavier" <raja.gv@in.bosch.com> wrote in message
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