DAMN! Wayne Gerdes – CleanMPG – November 26, 2018 A lone Volt with a waning sun over the Pacific contemplates its demise. Less than a month ago we reported GM profited heavily in the Q3 of 2018 with net income of $2.5 billion and Operating income rising $600 million to an eye opening $3.2 billion in the quarter. GM: Q3 2018 Revenue and Earnings Up Despite Lower Sales Today GM revealed how it is attempting to get ahead of any future industry or economic downturn by reorganizing its global product development staffs – read layoff and lower wages, the realignment of its manufacturing capacity – read plant closures, and a reduction of both salaried and hourly workforce. From the weasel worded release, Production plants that will be “UNALLOCATED” – Read shuttered, closed down, and discarded in 2019 include the following: Oshawa Assembly in Oshawa, Ontario, Canada, makers of the Cadillac XTS, Chevrolet Impala, Chevrolet Silverado, and GMC Sierra Detroit-Hamtramck Assembly in Detroit, makers of the Buick LaCrosse, Cadillac CT6, Chevrolet Impala, and Chevrolet Volt Lordstown Assembly in Warren, Ohio, maker of the Chevrolet Cruze Baltimore Operations in White Marsh, Maryland, makes of the A1000 Transmission, Hybrid 2-MODE Transmission, 6-Speed Torque Converters, and Electric Motors Warren Transmission Operations in Warren, Michigan, makers of the 6-speed transmission (6T70) for GMC Acadia, Chevrolet Impala and Cadillac XTS and Electric Drive Unit (GFE) for Chevrolet Volt, Chevrolet Malibu Hybrid, and Buick Velite (SGM) In addition, the previously announced closure of the assembly plant in Gunsan, Korea, GM stated it will close two additional plants outside North America by the end of 2019. GM’s Chairman and CEO Mary Barra, said the plan would save $6 billion a year by the end of 2020. As a counterpoint, UAW GM official Terry Dittes said in a statement: Additional actions include an increase of component sharing across the portfolio, “especially those not visible and perceptible to customers”, integrating its vehicle and propulsion engineering teams, and reorganizing its global product development campuses. With American’s and the world’s automotive buying tastes leaning towards the SUV, GM expects that at least 75 percent of its global sales volume will come from five specific vehicle architectures early in the 2020s. On the staffing front, the company will reduce hourly, salaried, salaried contract staff by up to 14,700. Barra added that GM will reduce the number of executives by 25 percent. GM expects to take a pretax charge of $3 billion to $3.8 billion including up to $1.8 billion of asset write downs and pension charges. The charges will take place in the fourth quarter of 2018 and the first quarter of next year, with some additional costs incurred through the remainder of 2019. SOB, that is going to create more than just a black eye in those areas where the plants will close, and the positions will be eliminated. Merry Christmas to all, and to all a good night. indeed.