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Guest Message by DevFuse

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GM invest $1billion / 1000 jobs in the US


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8 replies to this topic

#1 OFFLINE   Fgts

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Posted 17 January 2017 - 09:43 AM


http://gmauthority.c...-1000-new-jobs/

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#2 OFFLINE   blwnsmoke

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Posted 17 January 2017 - 11:48 AM

Ok, don't want to turn political but all the Big 3 making these huge investments in the US with the bubble popping.. this has to be because of Trump. Too much of a coincidence all 3 announcing the same thing around the same time.

#3 OFFLINE   BORG

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Posted 17 January 2017 - 01:42 PM

Here is the thing about PR, it's never as simple as the headline that the company wrote for the reporters.  Ford has actually substantially reduced it's outlook with the recent announcement by dropping a significant amount of capacity for cars and simply continuing ahead with their planned FlatRock electrification.  So yeah, Ford's announcement was actually in-line with the bubble bursting.  I'm not taking a close look at GM or Hyundai but remember Ford did not return any car production back to the US.  So Ford's announcement really was part damage control (canceling expansion) and it worked brilliantly.  


Edited by BORG, 17 January 2017 - 01:56 PM.


#4 OFFLINE   jpd80

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Posted 17 January 2017 - 01:42 PM

"Risk management"

1. Declining car sales meant that Ford no longer needed a third plant in Mexico

but switching the rest of SLP and Model E to Flat Rock plays very well politically.

 

2. GM has excess production capacity, it's time they started addressing that issue,

GM is running the gauntlet by announcing development increases in Mexico,

they need to balance that message with similar spending in the US.

 

3. Chrysler is playing to its strengths by increasing production of trucks and Utilities

and switching away from small and mid sized cars.

 

Anything that plays well with local manufacturing and jobs will be swept up and embraced by the incoming administration

and conversely, those continuing to invent excessively  in Mexico can expect harsh words and a rough time in front

of consumers.We're now in very different times where the right thing to do is support local production and jobs.


Edited by jpd80, 17 January 2017 - 01:48 PM.


#5 ONLINE   fuzzymoomoo

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Posted 17 January 2017 - 01:48 PM

And I will note too that the headlines are much bigger than they would have been even 2 years ago because Trump made it such an issue during his campaign. It's one of the few things I actually like about him is that he's at least brought attention to the issue even though his reasoning behind why manufacturing jobs are leaving the country isn't entirely accurate. It's something that labor unions have been complaining about for a while but since by and large the country stopped listening to unions long ago the message has gone unheard until Trump brought it up. It's one of the biggest reasons he won the election.

And yes I know that part of it is lower wages offered by Mexico, Thailand, India etc. but is also automation and technology killing manufacturing jobs.

Edited by fuzzymoomoo, 17 January 2017 - 01:48 PM.

What? What happened?


#6 OFFLINE   BORG

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Posted 17 January 2017 - 02:02 PM

Automation will also continue to play the biggest roll in manufacturing job losses.  The US Steel industry is a good example, they employ 75% fewer workers but make the same amount of steel.  So there is just no way to get ahead of this but it also makes final assembly more sustainable in the US.  And besides, final assembly is just a small part of the production, parts come from all over the world and there is no way to shift those supply chains to the US.  Once cars move to electrification and automation, the hands needed to make cars will continue to decline sharply.  This is one reason I'm glad Ford is holding the line on expansion far more aggressively than anybody else despite their obvious need to expand in areas.  The move toward automation is actually driven by the Chinese economy, until recently there hasn't been an incentive to invest heavily in automation when workers were so cheap but now China's cheap labor force is gone and manufacturing is driving the move toward automation. 


Edited by BORG, 17 January 2017 - 02:12 PM.


#7 OFFLINE   rmc523

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Posted 17 January 2017 - 04:00 PM

And really, it's a problem overall, not just with the auto industry....as technology moves forward and automation expands, that means machines can do more and more, and means people are needed less and less, which means fewer jobs.  Look at banks - fewer and fewer live tellers; grocery stores - fewer cashiers, more self checkout; restaurants can move toward having customers order on tablets, with just food runners as opposed to actual servers, etc.  Now, obviously people will still be needed to maintain said machines and plenty of other various tasks, but in many ways, we're also making ourselves obsolete.


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#8 OFFLINE   silvrsvt

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Posted 17 January 2017 - 04:06 PM

The move toward automation is actually driven by the Chinese economy, until recently there hasn't been an incentive to invest heavily in automation when workers were so cheap but now China's cheap labor force is gone and manufacturing is driving the move toward automation. 

 

It also doesn't help shipping your items several thousands of miles over the seas either with costs


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#9 ONLINE   akirby

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Posted 17 January 2017 - 05:02 PM

And really, it's a problem overall, not just with the auto industry....as technology moves forward and automation expands, that means machines can do more and more, and means people are needed less and less, which means fewer jobs.  Look at banks - fewer and fewer live tellers; grocery stores - fewer cashiers, more self checkout; restaurants can move toward having customers order on tablets, with just food runners as opposed to actual servers, etc.  Now, obviously people will still be needed to maintain said machines and plenty of other various tasks, but in many ways, we're also making ourselves obsolete.

 

Don't overlook the number of jobs created by automation.  Somebody has to build the machines, program and test the machines, ship the machines, do maintenance, etc. etc.   Not saying it's 1 for 1 or a net gain but I think it creates more (different) jobs than people might think.


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