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GM to close Oshawa (Canada) plant


fuzzymoomoo

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23 hours ago, jpd80 said:

We all saw this coming the moment GM started walking away from fleet sales, none of those plants had enough production capacity to sustain them

Good point jpd80 sir. The sharp reduction in fleet sales in the past 5 years has definitely been a good thing for GM. In retrospect, the company should have started consolidating and closing assembly plants like Oshawa, Detroit/Hamtramck, etc. as soon as they put that strategy into action. Better late than never though.

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20 minutes ago, rperez817 said:

Good point jpd80 sir. The sharp reduction in fleet sales in the past 5 years has definitely been a good thing for GM. In retrospect, the company should have started consolidating and closing assembly plants like Oshawa, Detroit/Hamtramck, etc. as soon as they put that strategy into action. Better late than never though.

It could all be to do with UAW contract timing, Gm was in a very different place four years ago, riding on a swell of increasing full sized truck and SUV sales and as some have suggested, maybe GM thought it could transition car sales to exclusively retail? 

Either way, things did not turn out the way GM expected. First, it's plan to use recycled Cruise classics and Impala Limited fell flatter tan stale pancakes and without that volume,  plants were in real trouble.  GM couldn't go back to fleet dumping after declaring those high retail percentages, the current situation  was pretty inevitable ......Perhaps consolidating all cars into one three shift plant?

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6 minutes ago, 02MustangGT said:

Please explain why a sharp reduction in fleet sales is a good thing?

He was referring to daily rentals, GM basically knocked the base out form under its car production, that may have happened eventually but doing it so early only underscores the production over capacity at all those one shift plants...it was always going to end this way...not enough plants were culled in 2009.

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7 minutes ago, jpd80 said:

It could all be to do with UAW contract timing, Gm was in a very different place four years ago, riding on a swell of increasing full sized truck and SUV sales and as some have suggested, maybe GM thought it could transition car sales to exclusively retail? 

Either way, things did not turn out the way GM expected. First, it's plan to use recycled Cruise classics and Impala Limited fell flatter tan stale pancakes and without that volume,  plants were in real trouble.  GM couldn't go back to fleet dumping after declaring those high retail percentages, the current situation  was pretty inevitable ......Perhaps consolidating all cars into one three shift plant?

I was already expecting a fight during the 2019 negotiations. GM's move pretty much guaranteed it. 

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3 minutes ago, fuzzymoomoo said:

I was already expecting a fight during the 2019 negotiations. GM's move pretty much guaranteed it. 

I wonder if the UAW will start with FCA   followed by Ford and leave GM to last - there's so many issues with them...

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1 minute ago, jpd80 said:

I wonder if the UAW will start with FCA   followed by Ford and leave GM to last - there's so many issues with them...

They better not... there's already an investigation going on with UAW/FCA. They would be very foolish to draw that kind of attention in them again. I'm convinced that's why the investigation started to begin with. 

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59 minutes ago, 02MustangGT said:

Please explain why a sharp reduction in fleet sales is a good thing?

It helps profitability and brand reputation. The VP of sales operations at GM gave this explanation.

"We have strategically decided to reduce car production rather than increase incentive spending or dump vehicles into fleets, like some of our competitors. We are working hard to protect the residual values of our new products."

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1 hour ago, fuzzymoomoo said:

They better not... there's already an investigation going on with UAW/FCA. They would be very foolish to draw that kind of attention in them again. I'm convinced that's why the investigation started to begin with. 

Provided they are transparent with the deal, there will be no problem....I don't know if that's even possible with so much behind closed doors...

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8 hours ago, jpd80 said:

It could all be to do with UAW contract timing, Gm was in a very different place four years ago, riding on a swell of increasing full sized truck and SUV sales and as some have suggested, maybe GM thought it could transition car sales to exclusively retail? 

Either way, things did not turn out the way GM expected. First, it's plan to use recycled Cruise classics and Impala Limited fell flatter tan stale pancakes and without that volume,  plants were in real trouble.  GM couldn't go back to fleet dumping after declaring those high retail percentages, the current situation  was pretty inevitable ......Perhaps consolidating all cars into one three shift plant?

That's what its looking like, at least 2-3 plants still making cars while the rest is truck/C-SUVs. Malibu will continue, im sure Regal will move to the Malibu plant after the negotiations, Sonic continues solely because of it's EV plant location and several EVs are based on it. If GM may Detroit and Lordstown plants can do fleet cars and some UV products but at what cost?

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Why would they still drop those 3 after the initial model drop, the case Regal it's literally a Malibu with a wagon/hatch awd and V6, since it's sales are up it would be ill advise to drop..

On a side note I hear the CT6 was dropped because the CT5 and Ct7/8 is similar in size not so much they have no interest in a fullsize Caddy sedan anymore. Don't know how much is true but we'll see.

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On 12/2/2018 at 12:58 PM, Fgts said:

Why would they still drop those 3 after the initial model drop, the case Regal it's literally a Malibu with a wagon/hatch awd and V6, since it's sales are up it would be ill advise to drop..

On a side note I hear the CT6 was dropped because the CT5 and Ct7/8 is similar in size not so much they have no interest in a fullsize Caddy sedan anymore. Don't know how much is true but we'll see.

Noting how almost all the other luxury brands have dropped the SWB versions of their large sedan models in the US in favor of the LWB variants, Cadillac would be following suit in replacing the CT6 with the CT8 Escala.

But that's just a wild guess on my part.

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