Technology: GM is now Detroit’s smallest auto-making employer - PressFrom - Canada
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TechnologyGM is now Detroit’s smallest auto-making employer

19:00  29 august  2019
19:00  29 august  2019 Source:   msn.com

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DETROIT — General Motors ' planned shutdown of its Detroit -Hamtramck plant would leave only one auto assembly factory in the city known for "putting America "Manufacturing is now a tech industry — you don't have to hire as many people to make as much stuff," said Ned Staebler, president and

General Motors ' planned shutdown of its Detroit -Hamtramck plant would leave only one auto assembly factory in the city known for "putting America on Detroit once was home to about a dozen massive assembly plants. A Fiat-Chrysler facility on the east side would be the last if GM closes its

(Bloomberg) -- General Motors Co. now employs fewer union-represented American workers than its domestic rivals for the first time since the United Auto Workers started organizing Detroit’s carmakers eight decades ago.

GM’s 46,000 UAW workers trails Ford Motor Co. by about 9,000 and Fiat Chrysler Automobiles NV by roughly 1,200, according to headcounts provided by the companies. Ford surpassed GM in 2014, and Fiat Chrysler overtook the No. 2 spot this year.

GM’s fall to third place is a dubious distinction for a company that’s been criticized by “America first” President Donald Trump. The company is also negotiating a new labor contract this year with UAW leaders who have vowed a take-no-prisoners approach to bargaining after an embarrassing corruption scandal.

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General Motors Company, commonly referred to as General Motors ( GM ), is an American multinational corporation headquartered in Detroit that designs, manufactures, markets

The University of Michigan is now metro Detroit ’ s second largest employer behind Ford Motor Co., according to the Crain’s Detroit Business 2010 Book of Lists. A year ago, Crain’s listed U-M fourth behind the Big Three automakers.The Crain’s list showed the impact of a shrinking auto industry as

Once the largest private-sector employer in the U.S., former GM President Charles Wilson famously said in the 1950s that “what was good for our country was good for General Motors, and vice versa.” But in recent decades, GM has downsized its domestic factory network and increased production in markets including China and Mexico.

“GM was historically the largest by far,” said Ron Harbour, senior vice president overseeing global automotive manufacturing for consultant Oliver Wyman. “But they cut a lot of plants in the U.S. during bankruptcy. They have a quarter of the plants they had in the 1970s.”

Blazer Blame

The issue of employment has dogged GM this year. The company has closed its car plant in Lordstown, Ohio, and stopped transmission output at a factory in Warren, Michigan, and two other U.S. plants are at risk of being shut down. The restructuring drew the ire of Trump and Democratic primary front-runner Joe Biden and is a focal point for the UAW in talks for a new four-year labor deal.

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General Motors , also known as GM , is the manufacturer of some of the oldest car brands worldwide, including Chevrolet, Cadillac and Buick. During the 2018 fiscal year, General Motors generated sales and revenue streams of around 147 billion U. S . dollars. This amount is lower than the 2016 figure

Detroit Mayor Mike Duggan was among those expressing concern, but he noted that there is strong demand for If we want our auto industry to continue to be the global leader in transforming mobility, federal policy must Detroit -Hamtramck is not the only plant in metro Detroit that GM plans to close.

GM has also taken heat from the union for the company’s decision to build high-margin sport utility vehicles including the Chevrolet Blazer in Mexico. The start of production of that vehicle last year helped GM overtake Japan’s Nissan Motor Co. as Mexico’s top carmaker, according to Automotive News.

The union is expected to press for additional investment in U.S. plants and job security guarantees for American workers. During an event at GM’s plant in Orion, Michigan, in March, Terry Dittes, the vice president overseeing the union’s GM department, vowed to fight to keep jobs for workers in Lordstown and other factories marked for possible closure.

GM is now Detroit’s smallest auto-making employer© Bloomberg

Mark Pratt, at GM 19 years, and his wife Sherry Pratt, 11 years, outside the Lordstown plant on March 26, 2019

The Next American Car Recession Has Already Started

GM also has offered all of the 2,800 union workers at the plants at risk of closing a job in another U.S. factory. The company is aiming for a deal with the UAW that won’t destabilize its operations as global sales slow.

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Now Walmart is the largest employer in America, and GM is a global corporation that makes and sells just about everywhere. In 2010, when GM emerged from the bailout and went public again, it boasted to Wall Street that it was making 43% of its cars in places where labor cost less than an hour

Detroit /Hamtramck Assembly is a General Motors ( GM ) automobile assembly plant straddling the border between Detroit and Hamtramck, Michigan. It is located about three miles (five km) from GM ' s corporate headquarters.

“GM’s focus during negotiations is to reach an agreement that builds a strong future for our employees and our business,” spokesman David Barnas said in an email.

Domestic Downsizing

At its peak forty years ago, GM employed 618,365 Americans, including 511,000 hourly workers. That was back when the automaker did much of its parts production in-house. That business became Delphi Corp., the forerunner of what is now Aptiv Plc and Delphi Technologies Plc. At the time of the spinoff in 1999, Delphi employed 43,150 UAW members -- nearly as many as GM does now.

The financial crisis a decade ago played a major role in downsizing the company. GM had so much excess production when the company filed for bankruptcy in 2009 that the automaker closed 14 plants and cut thousands of workers. In recent years, GM has trimmed more jobs at passenger-car plants as sales of sedans industrywide have cratered.

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While GM is a shadow of what it once was in the U.S. in terms of payroll and vehicle production, since emerging from bankruptcy, the $23 billion that it’s invested in the U.S. is nearly five times the amount it has spent in Mexico. And the company’s 16,000 employee count in Mexico is roughly just one-third the size of its U.S. workforce.

UAW and GM close in on tentative deal to end strike

  UAW and GM close in on tentative deal to end strike The United Auto Workers union and General Motors are closing in on a tentative agreement that could soon end the union's ongoing strike against the automaker. Negotiators have been meeting daily since before the work stoppage began on Sept. 16, however talks between the two sides have intensified in the past 24 to 48 hours, according to two people familiar with the negotiations.A Wednesday letter from UAW Vice President Terry Dittes to members confirmed progress has been made this week, as roughly 48,000 union workers picketed outside the automaker's U.S. plants for the 10th day.

A separate question that the GM announcement raises is who is responsible for retraining the displaced workers and helping them to find a new way to support their families? The tragedy in America is that there is no consensus among leaders in business and government. Should retraining be a public or a

GM Korea is one of the Detroit based car company’ s production hubs, particularly for developing markets GM Korea also has had an important role in developing GM ’ s smaller car platforms but Reuters’ “Our view is that management is making threats to pressure us and make us cooperate

Fiat Chrysler Rebound

In 2011, GM had 46,000 UAW workers, more than Ford’s 41,000 and Fiat Chrysler’s 23,150, according to data from the Ann Arbor, Michigan-based Center for Automotive Research.

Over the past eight years, Fiat Chrysler has increased market share and added U.S. production of Ram pickups and Jeep SUVs. The company’s headcount of 47,200 is more than double the number Chrysler employed when it was sold to Italy’s Fiat SpA in 2009. It’s poised to add 3,850 jobs at a new plant in Detroit scheduled to start production next year of a new three-row Jeep SUV.

“Fiat Chrysler has had an incredible rebound,” said Kristin Dziczek, an analyst with CAR. “GM has had to cut since then and they are now the number one exporter of vehicles to the U.S. from Mexico.”

--With assistance from Keith Naughton and Gabrielle Coppola.

To contact the reporter on this story: David Welch in Southfield at [email protected]

To contact the editors responsible for this story: Chester Dawson at [email protected], Craig Trudell

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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Talks between UAW and GM take 'turn for the worse': union official .
Talks between UAW and GM take 'turn for the worse': union officialGM made an offer to the union that basically repeated one the UAW had previously rejected, Terry Dittes, the UAW vice president in charge of the GM department, said in a letter to members. The union provided a copy of the letter to Reuters.

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