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The US Manufacturing Industry Has Been Hit Again, A 100-year-old Factory Will Lay Off 8,000 People!

Source:Iris Liang Time:2018-11-28 9:50:15

The US Manufacturing Industry Has Been Hit Again, and A Hundred-year-old Factory Will Lay Off 8,000 People!

As everyone knows, Trump’s slogan in the election in 2016 is to revive the manufacturing industry in the United States and create more job opportunities for the workers. For this reason, he does not hesitate to join the North American Free Trade Zone “partners” of Canada and Mexico. "Flip the face."

But the reality is far more complicated than what Bitplank thinks. According to a number of media reports, such as Bloomberg, Detroit time this Monday, General Motors announced plans to lay off 8,000 salaried employees (equivalent to employees) in a number of factories in North America, or up to 15% of salaried employees . This is the first time that GM has scaled down since its bankruptcy ten years ago to accommodate consumer demand for passenger cars.

The Associated Press reported that the layoffs announced by GM on Monday are expected to cause 14,000 factory workers and white-collar workers worldwide to be unemployed, and will affect seven factories in Michigan, Ohio, Maryland and Canada. The entire restructuring plan will reduce GM's costs by $4.5 billion by the end of 2020 and will increase $6 billion in cash flow. However, this plan involving layoffs and production cuts will face protests from the Auto Workers Union and Trump's pressure.
GM CEO Mary Barra said that despite the strong economy and lucrative company, she hopes to take action now to prepare GM to remain profitable during the economic downturn while remaining in electric vehicles. And investments in emerging technologies such as autonomous vehicles. SEKO Machinery appreciates this crisis awareness of GM. Maintaining sensitivity to the market and improving business management are compulsory courses for all companies. Therefore, in order to meet the customer's requirements for reducing energy consumption and reducing processes, we have introduced a Rotary large diameter black annealing device that eliminates the need for preheating and secondary straightening, reducing energy consumption and ensuring that the pipe does not deform.

According to Bloomberg, GM also said on the same day that the company will cut 8,000 salaried employees in North America, or up to 15% of salaried employees. As GM plans to reinforce these businesses with more focus on electric and hybrid power, and plans to eliminate several slow-moving automotive production lines, the layoffs could be heavy on the company's engineers, designers and other large product development businesses. Strike.

GM also said it will stop production of three North American assembly plants and two smaller transmission plants next year, involving a total of more than 6,700 workers, including a plant in Lordstown, Ohio (production of Chevrolet Cruze). , Detroit-Hamtrak's factory (production of the Chevrolet Volt and several large cars), and a factory in Oshawa, Ontario, where GM produces Chevrolet Impala, Cadillac XTS, Chevrolet Silverado and GMC Sierra Leica. Model.

The Daily Economics reporter noted that despite record-breaking operating profits for two consecutive years and US car sales hitting record highs, GM said the company needs to be nervous when the situation is good. Barra said the company hopes to be more efficient in its core business of engineering and automotive manufacturing, while investing more in potential emerging areas such as electric vehicles and autonomous vehicles.

The Wall Street Journal reported that GM's plan to lay off North American salaried employees will be achieved through a combination of layoffs and buyouts, many of which may be part of GM's large product development business.

The American Auto Workers' Federation (UAW), which represents GM's US factory employees, said in an e-mailed statement that the organization would challenge GM's plans through legal, contractual and collective bargaining. UAW said GM's plan is "cold and ruthless," and said GM put corporate profits above the interests of American workers.

A GM spokesperson said the company's plants in Michigan and Ohio will be idle, and the fate of these plants will be discussed next year in negotiations with the United Autoworkers Union.
In addition, the Oshawa plant in Ontario, Canada will be discontinued in the fourth quarter of next year. GM has not disclosed whether it plans to officially shut down the plant, but the Wall Street Journal quoted several people familiar with the General Motors program as saying they expected the plant to be permanently closed.

North American factory capacity is low

When Trump participated in the Ohio campaign in 2016, he proposed to bring manufacturing back to Ohio to create more jobs, which also brought him many votes among blue-collar workers. But nowadays, although the factory has it, its low production capacity is far below Trump's expectations.

Japanese automakers such as Nissan, Honda and Toyota can produce multiple models in one factory with their flexible systems, but GM, which is accustomed to large-scale production, has a large number of factories that can only produce one model. Due to the “not to force” sales, the factory had to reduce the number of workers, including Hamtrak and the assembly plant in Lotstown.

The automotive industry's experience is that if a plant starts with less than 80% of its total capacity, it will lose money. Barra said that GM's capacity utilization rate in North America is about 70%, and the capacity utilization rate of several GM plants is far below this figure. Consulting firm LMC estimates that the capacity of the Lotstown plant in 2018 will only account for 31% of its total capacity.

GM's competitors, Ford and Fiat Chrysler, have cut vehicle production at US plants. Ford said in April that it plans to stop producing almost all cars in North America.

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Iris Liang
SEKO Machinery & Technology Co., Ltd
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