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on General Motors

Tuesday, 25 September, 2007
  • United Auto Workers strikes General Motors.
  • Teamsters International will not cross.
  • Canadian production continues up to six days with existing inventory.

He’s called greenb1ood, and left a comment on The Truth About Cars

Not that I’m saying there is collusion to strike, but if there was it would make sense:

  1. GM idles unprofitable plants.
  2. GM sells down inventory of profitable and unprofitable vehicles.
  3. GM saves money on payroll AND healthcare.
  4. GM builds lower volumes without paying suppliers for not meeting their commitments.
  5. UAW gets to put on a tough act for rank & file.
  6. UAW gets to show Ford & Chrysler that they still have power for the upcoming negotiations.
  7. GM & UAW agree to the contract they’ve already agreed to 5 days later and both sides posture about a ‘hard fought’ contract. GM sells down inventory of profitable and unprofitable vehicles.

…just a thought…

Well, I wasn’t going to actually say it, so I’m glad someone else did.

This situation compels your humble narrator to wonder just what would happen if the world’s worst non-Soviet-Bloc automaker outside China either shut down entirely or ceased North American operations. Aside from depriving the world of such wonders as the Chevrolet Cobalt [aka Pontiac G5, Saturn/Opel/Vauxhall Astra, etc.] and the compellingly named Chevrolet Suburban [aka GMC Yukon, Cadillac Escalade], the departure of The General from its home market would leave an enormous gap in the marketplace. A gap which would almost certainly be filled by companies for whom designing, building, servicing and selling cars is not considered an annoying and pointless obligation. GM’s production facilities almost certainly shall come under the operation and management of companies working to fill that void in very short order, perhaps even profitably. I say, strike GM until it dies. It will be a rough couple of years, but we’ll all be better for it on the other side.

Don’t get me started about Ford …

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