Tag Archives: GM

Electric Social Distancing, by Eric Peters

When a car company tells you to keep your car at least 50 feet away from other cars lest your car’s battery explodes and starts a fire on a nearby car, prudence dictates get a new car. From Eric Peters at ericpetersautos.com:

GM has just advised owners of the Chevy Bolt electric car to park the thing at least 50 feet away from other cars, so as to avoid burning them to cinders – along with the auto-igniting Bolt.

What’s fascinating about this isn’t the advisory. It is the complete lack of “action” – to use the word so favored by government and those who reverence government – by the government.

What does it say about a government that lays claim to being The Great Protector – the issuer of fatwas and ukases with regard to safety – that it has issued no fatwas or ukases with regard to cars that are so dangerous the company that makes them has issued an advisory that they should be isolated by 50 feet from anything they might cremate?

The dissonance is halting.

Until one realizes it’s not dissonant. It is consonant  with every action of government – which merely uses the pretext of “safety” to further the thing that defines government, that being the exercise of power.

Once one understand this, one understands everything.

It begins to make sense that the same government which issued fatwas and ukases requiring every vehicle be equipped with multiple air bags – in the name of safety – not only didn’t lift a finger to take cars with dangerously defective air bags off the road, it refused to grant permission to the owners of the cars to have these known-to-be-dangerous devices even temporarily disabled, until a non-defective replacement could be installed.

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The Virtue Market Waxing vs. the Car Market, Waning, by Eric Peters

GM is now permeated with nothing but the loftiest thoughts, but it’s not a very good car company anymore. From Eric Peters at ericpetersautos.com:

GM hardly makes cars anymore.

The entire colossus – which once made half of all the cars sold in the United States – now makes about 17 percent of them, all four of its divisions (Chevy, GMC, Cadillac and Buick) combined.

In 1970, Chevy sold more cars by itself than all of GM does today.

But GM’s market share of virtue is going up and up! Face Diapers and electric cars for which there is no market.

And now – along with Amazon, Goldman Sachs and other retailers of virtue – GM has agreed to publicly bean-count the racial/ethnic/sex-preference/biological sex and indeterminate sex of its employees as well as gerrymander its employee roster according to the same criteria.

It’ll be an Easter Egg Fest of “diversity” – with great attention paid to the color of the eggs, the number of each color and their placement in the carton.

Well, all but one color – and that one will get negative attention.

Overt racism and sexism, in other words, to “correct” assertions of the existence thereof. If there are more white male engineers than black female engineers, it is because the white male engineers were hired on the basis of their whiteness and maleness – not because they brought stronger resumes to the interview table.

Ipso facto.

And of a piece.

As with the Face Diapering – which presumes you are sick and treats you as if you are in fact sick absent the slightest evidence of sickness – it is presumed that any job held by someone who is male and white was obtained because of whiteness and maleness. In other words, that the white males who got the job aren’t best-qualified for them but just white and male – the fact of their being white and male being sufficient to indict and convict them upon this charge.

A corollary of this theorem is that having black skin or female genitalia or genitalia you’re unsure of or which vary according to how you feel about them are CV superlatives that trump engineering ability. If there are two candidates for a given job opening, what’s under the hood (so to speak) and the hue of the paint are determinative.

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Electric Gaslighting, by Eric Peters

We’re going to have electric cars, whether we want them or not, because the government wants us to have them. From Eric Peters at ericpetersautos.com:

General Motors is pressuring its dealers to “commit” to spending hugs sums of their money on equipment and facilities to make GM’s electric cars more palatable to buyers. Which begs the question almost no one covering electric cars ever brings up.

Probably because of the answer.

If there were buyers for the electric cars GM is making, dealers wouldn’t need to be pressured to invest in such things as fast chargers and other EV-specific equipment, since these things would result in making money.

As opposed to wasting it.

Dealers willingly add additional bays, hire more staff, buy diagnostic equipment, spruce up their showrooms – and so on – when it is in their financial interests to do so. Dealerships being in business  . . . as opposed to the political business.

Which is what EVs are all about.

GM – and everyone else, including Tesla – makes electric cars because of politics. Because of political mandates to make them. And to “sell” them – in air quotes to emphasize the fact that all electric cars are given away in that any money made off the transaction is purely the result of various wealth transfer schemes, such as subsidies and “credits” – in quotes to emphasize the fact that they are extortions. Tesla – the greatest practitioner of this art form – uses the political mandates to make EVs to extort money from other car companies that do not make them; they pay Tesla money to get “credit” for making them, which is easier than actually making EVs themselves and then having to figure out how to get rid of them.

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GM Woke, by Eric Peters

An electric Hummer sounds almost oxymoronic. From Eric Peters at ericpetersautos.com:

If Bruce can transition into Caitlyn then GM can do basically the same thing – with the difference being Bruce probably paid for his own surgery.

GM is going to want your “help” paying for its transition.

In a few days, you’ll see what you’ll be paying for. The shaved Adam’s apple; the . . . augmentation. And the removal.

Behold!

The electric Hummer.

It is GM’s virtue-signaling plea for forgiveness. The bad ol’ GM wants you to forget all about those “gas guzzling” Hummers it made back in the early 2000s. It will now make a time-guzzling electric version of the same thing. Which is just as wasteful, by the way – but in a way that’s acceptable today.

But far more obnoxious.

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Another Way EVs Will Cost Us, by Eric Peters

Electric car production will probably cost a lot of auto workers their jobs. From Eric Peters at ericpetersautos.com:

Lost in the fatuous fake news juggernaut about the supposed misdeeds of the relentlessly besieged Orange Man has been real – and important news – about the longest nationwide strike by autoworkers in almost 50 years.

The target of the strike is General Motors. The United Auto Workers haven’t been working since September 16. Almost all GM plants have been idled since then, with the exception of the truck plant in Silao, Mexico. But a shortage of parts caused by the idling of the plants north of the border will almost certainly cause the truck plant to go silent soon, too.

The closures are costing GM about $25 million per day in lost profit, according to analysts.

But they could cost autoworkers – and us – much more.

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Soy Soup, by Eric Peters

Remember when car companies’ main job was to make cars for people who wanted to buy them and generate profits for their shareholders? From Eric Peters at ericpetersautos.com:

They must serve soy at GM’s corporate cafeteria. It could account for the strange statement released the other day by GM’s CEO Mary Barra. It says that the main purpose of GM is to make sure that “each person . . . lead(s) a life of meaning and dignity.”

Wasn’t it to make cars?

Emphasis on was. It isn’t anymore – apparently.

“The purpose of a corporation,” the statement continues “is to serve all of its constituents, including employees, customers, investors and society at large.”

Italics added

“Society at large”? This smacks of social(ist) studies rather than STEM.

But that’s what happens when a person with a background in human resourcesbecomes the head of a car company.

And it’s not just Barra.

Ford CEO Jim Hackett affixed his John Hancock to this opus – this thesis, in the Martin Luther sense – as well. Along with Borg Warner CEO Frederic Lissalde and Tom Linebarger of Cummins and 181 titans of American business. Many of these businesses have been losing market share for years. The whole of GM today has about 8 percent less market share than Chevrolet by itself had in 1970.

Which may explain the ennui of these businessmen about business.

It’s like a chapter from Ayn Rand’s Atlas Shrugged come to life.

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General Motors And General Electric Were Both Victimized By The Same Ponzi Scheme, And They Are Both Telling Us The U.S. Economy Is In HUGE Trouble, by Michael Snyder

Are GM’s and GE’s troubles unique to those companies, or are there indicating trouble for the US economy? From Michael Snyder at theeconomiccollapseblog.com:

America’s twin economic “generals” are both in very deep trouble.  General Electric was founded in 1892, and it was once one of the most powerful corporations on the entire planet.  But now it is drowning in so much debt that it may be forced into bankruptcy.  General Motors was founded in 1908, and at one time it was the largest automaker that the world had ever seen.  But now it is closing a bunch of factories and laying off approximately 14,000 workers as it anticipates disappointing sales and a slowing economy.  If the U.S. economy really was “booming”, both of these companies would probably be thriving.  But as you will see below, both of them have been victimized by the exact same Ponzi scheme, and both firms are sending us very clear signals that the U.S. economy is heading for troubled waters.

Whenever you hear the word “restructuring”, that is always a sign that things are not going well for a company.

And it turns out that GM’s “restructuring” is actually going to cost the firm 3.8 billion dollars

General Motors said Monday it plans to effectively halt production at a number of plants in the U.S. and Canada next year and cut more than 14,000 jobs in a massive restructuring that will cost up to $3.8 billion.

Of course GM doesn’t have 3.8 billion dollars just lying around, and so they are actually going to have to borrow money in order to close these plants and lay off these workers.

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As Sales Plunge, GM Might Cancel Six Car Models, by Wolf Richter

Car sales are dropping and GM is getting tattooed. From Wolf Richter at wolfstreet.com:

Discussions with the UAW have started. Entire plants at risk.

GM is getting whacked harder than any of the major automakers by the industry-wide plunge in car sales, as Americans switch in ever larger numbers from cars to “trucks,” which include pickups, van, SUVs and crossovers. In the first half of 2017, GM’s car sales in the US plunged 19%, and in June 38%.

The rest of the industry (without GM) booked declines in car sales of “only” 10% in the first half and 9% in June.

GM is losing ground in the bitter industry-wide reality of dropping car sales. Inventory is piling up on GM dealer lots. At the end of June, some car models exceeded a catastrophic 180 days’ supply. GM has already cut production. There have been layoffs. Plants have been temporarily shut down, and entire shifts have been eliminated. But it hasn’t been enough.

Now comes the next step: Ending production entirely of some models, shuttering plants for good or converting them to making trucks, and fretting about jobs. And that’s already being discussed between the UAW and GM, according to UAW president Dennis Williams.

“We are talking to [GM] right now about the products that they currently have” at underutilized car plants, such as Hamtramck in Michigan and Lordstown in Ohio, and whether these models could be replaced with more popular vehicles such as crossovers, he told reporters today, including Reuters. “We are tracking it,” he said. “We are addressing it”

Six passenger cars are currently under review at GM and might be cancelled after the 2020 model year, Reuters “has learned from people familiar with the plans”: Chevrolet Volt (a hybrid, not to be confused with the Bolt, an EV), Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala, and Chevrolet Sonic.

To continue reading: As Sales Plunge, GM Might Cancel Six Car Models

Chevy Forced To Extend Shutdown Of Bolt Plant After Realizing That Literally No One Wants A Bolt, by Tyler Durden

Nobody wants Chevy’s $35,000 electric Volt, even with subsidies. You’ve got to wonder how Tesla’s $35,000 Model S will do. From Tyler Durden at zerohedge.com:

General Motors launched it’s much-hyped, all electric Chevy Bolt at the end of 2016.  The Bolt was expected to make a splash as it was the first electric car in the U.S. market to offer 200 miles of driving range at an affordable price starting around $35,000.  The only problem is that pretty much no one seems to want one.

Unfortunately, that lack of demand is about to earn a bunch of UAW workers at GM’s Orion, Michigan plant an extended summer vacation.

As AOL Finance points out today, GM has managed to sell just over 7,500 Chevy Bolts through the first six months of 2017.  Moreover, since dealers are sitting on about 111 days worth of inventory, we’re going to go out on a limb and say the Bolt launch slightly underperformed expectations.  All of which has resulted in GM’s decision to extend the shutdown currently in effect at it’s Orion plant for just a little while longer.

  General Motors Co has extended a shutdown at the Michigan factory that builds the new Chevrolet Bolt electric car as part of a broader effort to get control of bulging inventories of unsold vehicles in the United States.

“Shutdown periods vary by plant based on launch timing of new or refreshed models across the portfolio and our ongoing efforts to align production with market demand,” GM said in a statement.

Bolt

But it’s not just the Chevy Bolt that GM is having a hard time selling.  Overall, the company is battling a massive inventory glut, some 126 days of supplies, in passenger cars.  As such, the company has extended summer vacation shutdowns at three other North American assembly plants. The assembly plant at Lordstown, Ohio, that makes the Chevrolet Cruze and a plant near Kansas City, Missouri, that produces the Malibu sedan both have three additional weeks of downtime. An assembly plant in Oshawa, Ontario, will be idled for two extra weeks to reduce inventories of the Chevrolet Impala large sedan.

To continue reading: Chevy Forced To Extend Shutdown Of Bolt Plant After Realizing That Literally No One Wants A Bolt

Trump Tweets, Ford and GM Counter, their Shares Jump, the Peso Plunges, but the Jobs Won’t “Come Back” to the USA, by Wolf Richter

Trump’s crony socialism by tweet is still crony socialism. From Wolf Richter at wolfstreet.com:

Whacked by slow demand, Ford cancels plant in Mexico, shifts car production to existing plant in Mexico.

President-Elect Trump has been hounding individual businesses with his drive-by tweets, to knock them around some, get their shares to sink, and cut some “deals.” Last year, he singled out Ford, Carrier, Boeing, Lockheed Martin, Amazon, and others. Now companies have set up damage-control teams to prepare for and counter a hit of this type.

Today he singled out GM. It was automaker day. It started with a Trump drive-by tweet about threatening GM with a “big border tax” for importing its Chevy Cruze from Mexico:

General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!

But he got the facts wrong, and GM’s damage-control team instantly retorted:

General Motors manufactures the Chevrolet Cruze sedan in Lordstown, Ohio. All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.

Reality is this: Demand for GM cars has been swooning, and inventories on dealer lots have been ballooning. For example, at the end of November, dealers sat on 127 days’ supply of Cruze models, more than double a healthy level, after sales had plunged 18%. In November, GM had announced the first wave of layoffs. In December, it followed up by announcing 10,000 layoffs and five plant closings [read… “Car Recession” Bites GM: Inventory Glut, Layoffs, Plant Shutdowns].

To continue reading: Trump Tweets, Ford & GM Counter, their Shares Jump, the Peso Plunges, but the Jobs Won’t “Come Back” to the USA