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GM Canada says 245 dealerships getting axed
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CTV.ca News Staff
Date: Wed. May. 20 2009 6:28 PM ET
General Motors is shutting down nearly two-fifths of its dealerships across Canada, mostly in key urban areas, at the cost of thousands of jobs.
A GM spokesperson said letters were sent Wednesday to 245 of 709 dealerships in Canada informing them that their sales-and-service relationships will be ending.
He did not name specific dealerships that will be closed, but said the majority are located in major cities. Further consolidation by the end of 2010 is expected to push the number of closed dealerships even higher.
Roughly 33,000 Canadians are employed at GM dealerships.
GM said Wednesday the move was being done in an effort to create a "more competitive dealer network."
The company said the cutbacks were part of its "more aggressive operating plan" brought on by heavy pressure from the federal and Ontario governments.
GM said it plans to focus on key urban markets and that it wants to close the dealerships "in an orderly, cost-effective and customer-friendly way."
The company is hoping the result will be "a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the country."
The dealerships had been due to receive letters detailing their status by the end of the month but GM moved the date up to today.
Last Friday, the company announced plans to close 1,100 of its 6,000 dealerships in the United States by late next year. That's in addition to 500 dealerships that market the Saturn, Hummer and Saab subsidiaries, which GM plans to phase out or sell.
The U.S. dealerships that were selected for closure had failed tests of both sales and profitability. Those stores were told they would not have their franchises renewed when they expired, many of them in October 2010. Many are expected to close shop this year.
About 400 of the U.S. dealers sold fewer than 35 vehicles a year.
The company hopes to get its U.S. franchises down to between 3,600 and 4,000 dealers by next year, GM vice president Mark LaNeve said last week.
The reports of the Canadian dealership closures come as GM and the Canadian Auto Workers hash out a new cost savings plan that would ensure the struggling automaker receive funding from the federal and Ontario governments.
Industry Minister Tony Clement has given the two sides until May 31 to strike a deal.
"We have to move to a place where General Motors is going to be cost-competitive in Canada," he said on Wednesday. "If were going to maintain our percentage of production, and maintain the number of products that are assembled and manufactured in Canada, we have to be cost-competitive."
With a report by CTV's Paul Bliss
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The chance of the destruction of our planet is very very small with this collider, but who are these people to decide what risks are acceptable for all of mankind? It puts me at unease and adds to my anxiety. CERN acknowledges that there are miniscule risks -- they admit to it so please spare the convoluted retorts.
kc-bby
Hadron Collider back in action after year of repairs
Comments are now closed for this story
DaveEast
said
All governments involved in this sham are contemptible. Had they had any guts or thought of their citizens, they would have put this notion of pouring zillions of our dollars into these failing enterprises with their pampered employees to a referendum, before giving them nickel one.
Edmonton Jim
said
Scott
said
GM just get it over with and go bankrupt.
Sherry
said
Samual
said
I hope Gm can restructure & become a competitive company, but the union has to go.
No more tax dollars to auto please
Typical union confrontational 'attitude'
said
Of course not, the tooth fairy did!
$70/hr compensation packages is the "norm" across Canada for unskilled labour right Mr Buckley??
N O T !!
Fact is, unions are a large part of the problems... as is lazy inept GM management and a corporate culture that is still parked in the 1950's mentality.
Travis Young
said
I hope the fate of dealerships is announced by a phone call from a real, caring person.
Dealership owners and employees deserve better than a letter shipped by a courier.
Steve the Pundit
said
Hope the cars they plan to make are going to be more reliable in the long run; if they're not, people will gravitate to the import brands (with better reliability records) and further sales declines will occur.
Talk about "between a rock and a hard place"...
Jackie Barrett
said
Since Canada has 10% of the equivalent population of USA, then they should be cutting an equivalent 110 dealerships instead of 260 based on 1,100 dealership cuts in USA.
Show some justice GM.
charlesdexter
said
Rob C.
said
Robert - Montreal
said
Buckley: "....and it's very frustrating because our workers didn't create this crisis we're in" - what a joke!! Unions have to go...
Tyler in Fort Mac Alberta buys Canadian
said
Ajax Terry
said
ADM Saskatchewan
said
DO
said
Now we would be responsible for the debt they continue to rack up - it isn't like it is going to change any time in the near future. Unfortunately, we've seen this coming for years and all of a sudden everyone is shocked?! It is time to claim bankruptcy, restructure, get rid of the union and build a strong, efficient company again.
GUTSHOT!! in Thunder Bay
said
I guess it's too easy to just jump onto the idiot wagon and complain with false facts and truckloads of misinformation about GM, Chrysler, and the CAW instead of facing the negatives that accompany this bad news.
Now, I know very few of you union and GM haters are capable of reading this far, but the truth is without GM and Chrysler supporting these people/fellow citizens, youre tax dollars are destined to go to them in one form or another.
That's right folks! You will pay for them either through EI, or welfare or propping up the companys themselves. The difference is when you support the company and the union, they have the chance of paying money back into the community and supporting the company you work for. Thats why your government has provided them the aid thus far.
So, it's pay now, or pay later folks..dont pay now, and you will forever lose the bulk of the industry. With those loses comes lack of support for the company YOU work for. It will mean an increase in taxes to supportall those without jobs.
Remember, taxes are a politician's heroin. They can't stop, and they will get their fix one way or another. Choose to keep your share of taxes low, and our share of the market high, support GM, Chrysler, the CAW, and your fellow citizen.
Cars from foreign countrys are not cheaper, either initially, for repairs, or even socially.
Remember, somewhere theres someone willing to take YOUR job because they will do it for less. Stop racing to the bottom. Think ahead before opening your comments window.
WESTERNER
said
Holly
said
Jonas
said
Let's Get it over already In ottawa.
said
Alan
said
I was at our local Toyota dealership the other day and they are renovating their service areas. Internet stations, teak furniture, an upscale coffee and muffin centre and a large plasma screen tv is on its way. Meantime touching base with my Chrysler salesman nextdoor there is a stark contrast. They're obviously on a holding pattern just waiting for the news. What was a burgeoning dealership a few years ago is very quiet with a much smaller inventory. This is when the news is not about Oshawa, Windsor or Brampton, it's about all our neighbours.
Jenn-Killarney
said
Doug BC
said
Generally,I support unions and the work they do. BUT,in many cases, SOME unions become to powerful,and to much in control. Their bargaining tactics a close to extortion. This seems to happen mainly in very large companies, companies with little competion,companies that people think are "to big to fail".
The workers are so confident that their jobs are not in jeopardy,that they go for every last nickle they can get. Public sector unions can run into the same trouble. Mainly because the public can not take their business anywhere else,and the government in office can't tolerate health care facilities,or schools being shut down.
Assessing what is a "fair" wage for a job can be quite a subjective exercise. The real clues though,should be in recognizing that your job is paying a lot more than others, doing similar work, or with equal or higher levels of skills, are making far less thay you are. When that day comes,your "hay days" are close to an end.
I love my GM trucks. They have all served me well. But no way should tax payers subsidize wages so auto workers can make so much more than the taxpayers who are footing the bill.
And "NO",I do not agree with "Sherry" when she says government can run these auto companies. I will refrain from underestimating the capacity of Ontario's government, but I would strongly oppose any party that wanted to use tax dollars to build autos.
Aliza
said
That said, the dealerships and their staff knew they were selling garbage vehicles (ie fleecing the poor suckers who were dumb enough to buy GMs, Chryslers, etc), and that those companies were losing market share and money. So they're getting what they deserve for lousy morals.
As for the unions: abolish them all. Their greed and obstruction played a major role in the Big Three's decline over the last 20-30 years. And for all that money, they didn't even put in the effort for decent build quality! (obviously, the lousy designs weren't their fault).
And as for Chrysler-- no tears. After all, they got HUGE bailouts in the early 80s. And did little to fix their fundamentals.
And to the person who said he buys Canadian and thus won't buy an import: my previous car was Canadian made. A lovely little Honda Civic, made in Alliston Ontario. Well designed, well built, good mileage, super cheap to maintain: excellent value for money. Let GM, Chrysler die, and Toyota and Honda and Volkswagen, etc replace them. They already have most of the market share anyway...
David MacKenzie
said
Adam in Ottawa
said
Henry from Alberta
said
K.Matroskin from TO
said
Dave in Ontario
said
high cost repairs . I think there goal ws to rip you off and tell you all about all the defect's GM's are built with . Of Course the Sales people don't tell about the defects when you buy the Car . Good-bye GM .
wendy
said
Time to go GM and CAW, time to move forward with new ideas.
Pip
said
Perhaps she is under the impression that our tax dollars would only go to the dealerships. But has she considered that a new governement department, with all its staff, would be needed to "administer" these dealerships? That getting a simple decision to even repaint the exterior of the dealership would require weeks of committee work? That 98% of the money budgeted for those dealerships being administered under her plan would be used up by an ever-expanding bureaucracy?
And those dealerships would still only sell 35 cars a year. . .
Phil
said
GM, Ford and Chrysler Bye Bye, good riddance to bad rubbish we do not need your out of touch products any more.
Kimberley
said
The auto industry is Canadas single largest exporter, accounting for $80 billion, or 18% or the nations total exports in 2007.
Auto industry exports valued a fifth more than those from the oil & gas industry, and more than double the level from each of the forestry & paper, primary metals, or agriculture & food sectors.
As a crucial source of high-technology investment and productivity growth, the industry boosts our national economic performance.
The benefits of the industry are felt throughout the country through supplier links, consumer spending, taxes and inter-provincial equalization payments.
Auto workers paycheques pumped $9.5 billion into the Canadian economy in 2005 (or $26 million a day).
The industry supports services that everyone depends upon, like health care, education and social services. Auto workers fundraising efforts also directly support community organizations such as the United Way, food
banks and womens shelters. In 2005, auto workers paid $2 billion in federal and provincial income tax (or $5.5 million a day).
And most auto workers own homes. Based on average property tax rates, auto workers supported $319 million in municipal taxes in 2005 (or $873,000 a day), helping to pay for local services.
Fred in Halifax
said
What incentive does the union have to bow to pressure if they know they will inherit the works? Obama and his admin have mereley done what democrats love doing - putting off the real problem for the next admin.
Bryn in White Rock
said
What'll happen, is that most (perhaps not all) dealerships will reformat and end up taking on new lines, which would likely be imports.
These companies won't be wanting to shut down, and because they have customer bases in existance it would be easy for them to transfer over to being a Hyundai or heck even something like Tata.
Business owners don't just lay over and die when they're told to. An existing customer base is almost as good as gold, and these dealership owners know that and will capitalize on it.
The unfortunate thing here is that they won't be sellling North American cars, and the jobs will go offshore.
Bill
said
Unions have to and will go or the car companies will. Plain and simple. Am I a union hater? Oh yes, with pride.
What they deserve!
said
Cory in Kingston
said
When you built your home did you only use union contractors?
When you go grocery shopping do you only use unionized stores? eg. Loblaws
When you need your car painted or repaired will you find and only use a union shop?
This list could go on and on.
The CAW and GM want us to support the over priced junk they make so they can continue making a ridiculous amount of money on their paychecks. Union support starts from within.
How many of you CAW brothers and sisters get your $30+ an hour wages but flock to wal-mart to spend it?
Hypocrites!
Dave Calgary
said
I do agree that the auto workers are overpaid for their skills and so are many other unskilled, semi skilled and trades.
Maybe we should overhaul all pay structures to reflect education and intelligence?
Enough is Enough Alberta
said
As for unions get rid of them all. All they do is cost companies money and grief. If they don't like something they whine until they get what they want. Where did it get Gainers employees here in Edmonton? The unemployment line!! Unions are 50s mentalty, go away.
Beth Coleman mount Forest ON
said
Gregory Boudreau
said
Provincal Government has enough to take care of, let alone a car dealership and there are many in Ontario.
Alex (Toronto)
said
rj-makemyday
said
I then had to tow my vehicle to a locksmith (another 100 bucks spent) who fixed the job for much less!)
Carmel Divine
said
Let's all bash them to death now that they are down....
If we are ever in a war I sure wouldn't want YOU on my side....
These are OUR people....and OUR jobs....
My last car was an '04 Impala,and my next car will be one as well, It's made in Canada....I am all grown up now, and I don't appreciate riding around on my ass....
TRUE CANADIAN EH
said
MRC in Ontario
said
What is so unreasonable about making the same amount of money, which is quite generous, as a Canadian Toyota or Honda assembly line employee?
Until you answer that very reasonable question, straight up, your whole greedy union should collapse. You should have also learned how to open up a personal RRSP a long long time ago, too.
P.S. Is anyone aware that GM cut 50% of their Canadian engineering staff within the last few years? Yes, FIFTY percent! Don't hear the poor engineers crying the blues on national/international television, do you? While they have every right to be heard just as much as Ken Lewenza, do you know why they don't make a fuss?...Because they have TRANSFERRABLE SKILLS & ATTITUDES.
P.P.S. As for yet more people complaining that the Detroit-3 has been making "gas hogs" for years...I thought they were just making the vans, SUVs, & performance cars that everyone WANTED?? If you have any shred of the "sustainability" vibe in you, you will support cars engineered, manufactured, AND delivered within our own soil, North America.
35 car dealership in Alberta
said
The profits on cars can be so little, and the competition between dealerships so tough I've seen deals where its 50 bucks above dealer cost. Sell 30 or 300 with no profit, its still a waste of time for the dealership but is profit for the car maker. Some loss leaders are under cost. It's not for the profit, but trying to keep on the top of the pile for moved vehicles. A dealership also pays its own way and is hit with fee's and service charges from the actual car builder. The dealership paid for the right to put the brand on their garage and all the exclusive rights for buying special tools that only work on one model for one little part. I've paid hundreds of dollars to join a 'sales event' and only received some posters and balloons and the right to pass on the savings to the customer.
Less dealerships and competition equals higher prices?
Gary - Edmonton
said
Did you cut and paste those stats off the CAW website?
Simple economics dictate that if GM and Chrysler go bankrupt the demand for cars won't go away. A group that actually understands how to run an industry will step in. It's inconceavable to think GM and Chrysler are the only options - in all liklihood, at this point in time, they are probably the worst options.
Let them go - someone else will replace them...
Geoff
said
Dave from Toronto
said
Jayne
said
You talk about hard working families having to pay for GM's SUV problems! Well last time I checked it was hard working people and families that were buying SUV's back in the day!! Car companies built SUV's because there was a need/demand at one point.
The problem now is that GM and the other car companies didn't use their common sense to realize that need/demand was ending.
Vern
said
D.K.
said
assuming your numbers are correct the auto industry still represents less than 5% of the country's workforce. I agree that Oshawa might suffer more than some but the collapse of the Detroit 3 will have a much smaller impact on cities where there is no auto industry.
92% of the people are still working paying taxes, contributing to charity etc..
Closing dealers will sprend the pain across Canada but a lot of these dealers will remain open in some sort of capacity so not all employees will lose their jobs.
AJ
said
Let us allow GM to die already! FORD will not only survive but they will thrive because they are not asking for handouts. I bought a new FORD last month and I love it....I'm proud to support a company that doesn't beg!!!
Dr AJ
Taking responsibility for myself
said
Obviously, you have a union mentality. Believe it or not majority of Canadians do not expect Government or Unions to bail them out. We stand on our own two feet and make the best of what is dealt us. Yes, we may need EI for a short period, BUT we do not accept this as our long term fate. Only, catered, spoiled, union members have this mentality. Have you ever considered taking responsibility for yourself???
Red Neck in Calgary
said
i been a toyota truck owner for 30 years.
suncoaster
said
Oshawa
said
Ken in S Ontario
said
AB
said
I hope they're not planning to close dealers in small towns - I have always noticed people in smaller towns seem to buy American vehicles over imports. My opinion is they should reduce the number of dealers in large urban centers like the GTA. I can think of 7 GM dealers within 15 minutes of my house. Isn't that a bit extreme? I can think of 2 or maybe 3 Honda or Toyota dealers within the same distance of my house.
It's important to realize part of the problem GM has is they produce the exact same car under 3 or 4 different name plates, which necessitates (apparently) a Chevrolet Cadillac dealer, and a Pontiac Buick GMC dealer separate all selling the exact same models. They just look different. If you've been to the Erin Mills Auto Mall you can see this - Applewood Chevrolet on one end and Laurie Williamson on the other end of the mall. When they decided to eliminate Pontiac, a lot of dealers would have been out of it anyway. They're still licenced car dealers with service centers, so I don't see any reason why they can't continue to operate (outside of the economic circumstances) as a used car dealer with service and parts. Hopefully some of them will do that instead of closing down all together.
HM
said
Steve the Pundit
said
- The best selling vehicles for each of the "Big Three" are TRUCKS! Ford F-150, Chevy Silverado / GMC Sierra, Dodge Ram. This does not sound like products "nobody wants"
- The best selling vehicle (car or truck) in North America for the last 30 years is ...wait for it!... the Ford F-150. A PICKUP TRUCK MADE BY A DOMESTIC MANUFACTURER! Again, "nobody wants these?"
- for the better part of the last two decades, the best selling vehicles in each of the Big Three lineups have been either trucks or SUV's (and now crossovers)
- the volume and profits generated by these types of vehciles were enough to convince the imports (Honda, Toyota and Nissan in particular) to start building them too. Remember when Toyota and Nissan pickups were cute little "truck-lets"? Not any more!
Point being, companies will build what people demand. And, to a large extent, they will continue to demand these big vehicles. Where the Big Three went wrong is, unlike the imports, they did not invest in their small car programs (both GM and Ford all but ignored the car side of their business for almost a decade).
So when demand shifted, and credit went south, and oil prices went north, they got caught. You can blame them for not being prepared for these factors, and obviously for the quality and reliability of their products, but you can't blame them for giving the consumer what they wanted for as long as they did.
And, for the record, the market share of the Big Three combined is still over 40%; not what it once was, but still significant...
Robert
said
The management and unions which are contractually obligated to GM share equal responsibility in this mess - ALONG WITH THE NORTH AMERICAN CONSUMER.
GM, Ford & Chrysler are a long way from Deming's 14 Points of Quality - applied in the post-war in Japan to produce their modern industrial revolution (producing
the Toyotas and the Nissans).
GM experimented with Deming's approach in the late 80s and early 90s. So what happened?
Deming advocated a change of mentality as evidenced in his 14 Points of Quality. It was never designed as a quick fix - which was how it was applied at GM. After the crisis of the late 80s early 90s subsided, old mentalities re-emerged - because mentalities had never changed.
To be fair to both GM management and workers, North American consumers bear much of the blame. We are 20 years behind Europe, Asia, and even Australia where small fuel-efficient cars are driven by most people - and made by the Big Three for these markets. Yet in North America by and large we still have a pre-occupation with size and love our big cars. If we do buy smaller Japanese cars it is on the basis of price-point only.
Current management spending and operation practices at the Big Three are unsupportable. They could take lessons from Japanese car execs whose work ethic is unparalleled and who work alongside their workers.
Current union work ethic, compensation and "us-vs.-them" mentality are like wise unsupportable. Unions have steadfastly rejected profit-sharing agreements and pay-for-performance, and are working for unjustifiably high wages.
Its time to re-think &
return to basics.
Linda in Vancouver
said
Yes,we will all pay for the EI and welfare for workers who don't find other work.But hose costs will pale in comparisson to what it will cost if we let auto workers blackmail us into accepting their "right" to earn more than the skills would demand in any other job.
And Kimberley,auto workers are not the only ones to support the Untited Way and the rest of the institutions you mentioned.Your post suggests that we should all pay a ton of taxes,so some can live in luxury just because they offer some support to their respective communities.
Kimberley,you are right about the industry being important.But it will cease to be important if it relies on tax dollars to keep it running.At that point it becomes a net loss to everyone who pays taxes.
And, the problem with a government running any industry, is that politicians find it all to easy to hide the losses any time it suits their political agenda.We end up paying to much just to cover the governments butt.
Long tern subidies cost a lot more than we recover via the taxes auto workers pay back. They will still pay taxes when they get new jobs building things that can be sold at a profit. Higher tax revenue is a poor excuse to over pay workers in any industry.It fits right along side of de-valuing the dollar for industries that can't compete. Both create false economies.
Mike from Kamloops
said
High union wages and boardroom greed led the auto industry where it is now.
Chucker
said
"I think the provincial goverments should step in and buy up these dealerships and let them continue to run. We owe it to these hard working people. The government can run these dealerships with no problems. I have no problem paying provincial tax money to support this industry."
Sherry....surely you jest and are not serious are you?? Come on, you really think that the government should buy these underpreforming dealerships and run them? With our tax money, get real. I had been told in the past that there are Canadians like you Sherry, you know the people that think the "government" should help for everything. These type of people like Sherry, like to think that the government owes us everything and if something goes wrong in the free market, then "dont worry the government will do something". Stop with the government stuff, this is the free market, it would be foolish for the government to run these delarships. They are losing money and GM want to close them, its that simple.
Proud Canadian!
said
LAL
said
Clearly those that prefer to believe and rely on the media's daily rhetoric and distorted truths pertaining to this issue are no better than the "uneducated auto industry baffoons" they disparage.
I hazard a guess as to how many of todays authors had fathers and grandfathers that also were "uneducated monkeys" that worked in factories or other industries (not excluding family businesses) that had the luxury of nepotism sans post secondary educations.
As for the negligible sycophants that support the imported vehicle companies, one can only surmise that you also believe that the profits from these companies are "All Canadian" too, once again proving the adage "It is better to be regarded an idiot than to open one's mouth and prove it to be so."
Clarance
said
If GM had produced a much better product then they do, none of this would be an issue. Yes the people who work for GM will pay, but they chose to work for a manufacturer of a poor product that was destined to be doomed.
mike
said
Shaun
said
On another note, I'm not sure why people still include Ford when talking about the failing auto companies (GM and Chrysler). I know that they have lost a lot of money lately, but they haven't had to beg the government for a bailout.
When I was car shopping a few years ago, I was able to buy a slightly used 2006 Ford for 5,000$ less than the equvalent Honda model which was a 2000. I've yet to have a problem with my Ford and having driven several other rental cars, most feel cheap compared to mine.
If you're out there looking for a car, I agree to stay away from GM and Chrysler, but don't overlook Ford just because people lump them into the "Big 3" group.
john
said
taxpayer
said
Ki-Som Victoria BC
said
Tupper Wheatley, Peterborough
said
Get the facts people - Then post!
Tired of the whining
said
The hourly wage is ridiculous and people should give their heads a shake and ask themselves if that is a fair wage for the work they do. I doubt a non-unionized company like Wal Mart would pay $80/hr for a store greeter..
MuskyBuck
said
Jobs lost.
Families put into distress.
And everyone of you goof balls will be the first in line to buy the 'New GM' when it comes out.
The media will present focus pieces on the new GM vehicles because it fills a spot in their programming.
Because that's what sheep do. They sit on their backsides, complain and then forget.
R Wilson
said
Good buy GM....your going to lose more the dealerships.
Maybe you should some research
said
BobtheNob
said
Right. I bet you always buy North American. Like your Dodge Ram, which was made in Mexico by labourers for $12 an hour. Great decision.
My Honda was built in Ontario.
Guess what, I win.
Can't wait for the the oilsands to collapse and people like you to sit back and wonder where it all went.
Dave from Toronto
said
WESTERNER
said
Roughneck work (Rigs)and long hours in diverse types of climate conditions is why I WON'T put down Rig workers that have education at par - WOULD YOU DO THEIR JOB? I've worked alongside these people in another capacity and they can have their job and the good wage that goes with it! Lets see you out their with some of the conditions they have on the "worse rigs". I seen those workers at GMC and what they work in - HAVE YOU WORKED IN THE FIELD IN REMOTE LOCATIONS AND BEING HOOKED UP AND NOT BEING ABLE TO MOVE ONCE YOU START A JOB? Hats off to these guys and girls that work the Rigs and give up Education to Learn and move up the ladder educationally ON THE JOB, as they deserve the wage - as 12+ hours a day and limited toilet facilities as well as doghouse (small trailer) that you all share for a break. I'm no City slicker here and have worked in the field and in an office - so come play and learn the field!!! Earned my way up and with exhausting hard labour, work experience with additional learning.
Brandy
said
Let's hope one is closed in Kamloops.
Kamloops also has 2 Chrysler dealers within 100 yards of each other chasing the same
customer.
Total Stupidity.
Board them up!
Alison
said
Neil from Whitby
said
Neil from Whitby
said
Stunned beyond belief!!!
said
Someone needs to “grab a grip” of reality!!!
Heiner
said
Several different issues at several different levels here. Firstly, there are too many dealers and the cost of operating each one is a fixed annual cost that must be reduced so the remaining dealers can sell higher volumes of vehicles at better prices.
The unions are the source of all the troubles with respect to costs. The media and some successful brain washing has convinced the populatio that GM cars are inferior. GM cars get better fuel milage than Toyota's. Cobalt is better than Corolla, Sierra is better than Tacoma, Venture is better than Sienna. Go to the websites of the manufacturers and see. GM usually wins by about 1 MPG in each class of vehicle.
I am an engineer and have done work for both Toyota and Honda. They both run their operations very well. They are not hog tied by an irrational union.
Pensions are the next issue. There should not be any private pensions. All pension contributions should be made by the company and employee and paid into one state run pension plan. Private pensions only mean that every 30 years or so, a new company with no retirees comes along and slaughters old companies with legacy costs. The minute an employee is not working for a company the costs of that employee must be removed from the company. It works well in Europe and they work less than us and retire better than us.
GM and Chrysler will continue to produce cars and if given an even playing field will easily compete against Toyota and Honda.
TO: RED NECK CALGARY
said
Steve-O
said
As for the plight of the US auto makers, ask yourselves this question
"Can I build a good quality vehicle to compete with buyer-worthy imports?"
When, and only when, you can answer 'yes' then perhaps your ill fortune will turn around.
B. Kelley, Ontario
said
Deborah
said
You certainly have a bone to pick with people negotiating wages with their employer and getting them. Maybe no one filled you in but THESE COMPANIES didn't have to give their employees the wages they asked for so how can you blame the workers.
You say they are just standing around all day watching robots work.. well it's the very people that watch these robots put a car together that make them safe for us all to drive!! The very people that makes sure every nut and bolt is in place so that your damn wheels or steering wheel doesn’t fall off while your driving down the street.
I would you to ask an auto worker to see their paycheck!! It does not say 80.00 an hour on it so get your facts straight!!! I have dental benefits provided for me by my employer, that amount is not included in my hourly rate!
When the auto companies were making MILLIONS/BILLIONS no one complained to the workers they were making too much money. These companies willing negotiated contacts with workers. The last time I went into my boss and asked for a raise, he either gave me one or he didn’t. It’s his choice whether I deserve one or not!
If you think for one second you won't be paying for all the people on unemployment, loss of property taxes when people lose their homes then you are delusional!!! It’s the very ROBOT WORKERS that have kept small mom and pop businesses around factories in business. I guess should blame the local “mom and pop” businesses for their GREED and knowing where the money was .. Straight out of the pockets of the factory workers! Or maybe I should be blaming them for setting up shop there .. I mean these workers didn’t force them to open up a business near a factory!
farmer fred
said
The company is hoping the result will be "a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the country."
Yet another attack on small town Canada. There is simply no logic in this case. Sending people further from their community to go buy a vehicle does not increase sales, it does not save GM money (these are independent dealers) and it achieves nothing. Clearly GM just doesn't get it, nor do the other two Big Three companies.
Give us products we want to buy. That is job one and the place that they have failed. You can blame the unions, you can blame the dealers but ultimately the real culprits are sitting in head office on their cushy postiers.
FM, Ottawa
said
Get rid of Pontiac and keep the following 3 and reorganize them as follows
Chev (All Car models)
Cadillac (high end of both Chev & GMC)
GMC (Trucks, SUV, Cross Overs)
Thant’s it. Keep it simple.
Steve
said
I think that has been part of GM's problem for years. The sell 7 or 8 lines of cars, half of which are the same car with a different body. Then Honda and Toyota step in sell one line of car each, and steal half of the Big 3's sales. GM has been canabalizing its own consumer base. They should have condensed down to one or two brands a decade ago, and then focused on the quality of those brands.
For the record I have owned 2 GM cars. One that had 330K on it when it final quit, and one on its way to 300K without any major issues at all. Do your maintenance, and don't pound the crap out of them.
And I have a hard time shedding a tear for the dealerships. These are the same guys that have had shady advertising practices for years. Gotta love all those *'s you see beside the price in every add.
Marge
said
Crystal
said
I hope that the closing of all these dealers helps the ones that are left to survive and thrive. My common law bf works at a dealer and i would like to breath a sigh of relief to know that his job is secure. Time for a big change and hopefully they can pull it off for the poor employees of all the businesses involved in and around the corporation that is GM.
jay cormier
said
What a shame.
For a more insightful and provocative look, buy the just released book, "Spent: sex evolution and consumer culture" by Geoffrey Miller. Original , witty, mind-blowing.
The other Lowell in BC
said
Bill Nie
said
Think about this as a sideline...most things are made in China, we keep spending more money for new equipment in China to make more stuff. China is one of the wealthiest countries in the world and getting stronger. Thank north american CEO's for that one. They will soon be the world supplier for the majority of items. Sound like a monopoly? Remember China is run by a communist government with little to no human rights. Buying items made in China supports communism, ignors human rights and strengthens their resolve. What will happen to north american manufacturing when everything is being built in low cost centers in Asia. there aren't that many McDonalds jobs to go around. Think about it...seriously.
Remarkable
said
It's a sign of the times these days with places closing, but how many recessions do any of us remember when we seen car dealerships closing by this large of number?
So sad, but so true that this is happening. Maybe we shold all just learn to live on $10 p/hr and go work at our local Walmart or Home Depot.
James in Saskatoon
said
T from London
said
If you reduced them earlier you wouldn't be in this mess.
Natasha Vaux
said
Layton in Moncton
said
Al
said
Why was GM paying billions of dollars in dividends over the last few years when they were reporting massive loses? Why wasn't that money used to pay off debt to keep the company healthier? They always thought they were one product away from a turnaround.
GM is a bloated, multi-layered mess, and it disgusts me thet neither Harper nor Obama are forcing them to follow the Asian systems they love so much for their workers, in management. The reason the asian automakers are doing better than the D3 starts at the top. There should be more focus placed on that end of the business.
Sick of GM Bashing
said
Manon - Ottawa
said
Over the past weekend, my husband and I bought a reasonably priced, highly rated vehicle for less than we would have paid a North American one and with a much better warranty and after sales plan. Why, because we put our pocketbook ahead of politics and false sentiments!
Fairnuff in BC
said
Jim - Calgary
said
Corporate managements that allow themselves to be dictated to or ramsomed by their unionized employees are doomed to failure. There is also a day of reckoning for greed and the UAW and CAW are now reaping the just rewards of their avarice.
Collectively, the unions and the the "Big Three" thought that the market would always be there for them and they could foist whatever they wished on the public.
The last General Motors product I had literally began to fall apart on the very first day and it spent two of the four months I had it in the shop waiting for replacement parts ranging from door locks to a new transmission. Were there any offers to compensate me or to make other arrangements for alternate transportation? Obviously not. I then did what may others have done, I went elsewhere for the replacement and it wasn't to Ford or Chrysler either.
R NS
said
Yes this is bad news...but we knew it was coming...and the Goverment should not have to step in. The company can not support itself...it needs to trim down...or we will would get into a cycle of bailing it out...again and again...
Not to mention, the next private company that runs into trouble...well they want a bailout...so why would we say yes to one, but no to another? We have to stop somewhere...or everyone will start companys, and not care if they are mismanaged...the goverment will have to bail them out.
As painful as this is for all Canadians...it is neccesary. We cannot NDP these problems away...they are real..and need to be fixed.
Dan Shaule
said
GM OWNER & LOVING IT IN BC
said
But,that's exactly the point,and the reason this decision must taken with the "great deal of care and sober thought" "Neil is suggesting.
That is exactly why governmentrs in Canada and the USA have demanded a VIABLE plan for future success.If they can present one,they will get help.If they cannot,then the losses we may suffer as a result of the companies failing now will be small when compared to giving them more tax dollars,and having them fail after years of government subsidies.
I don't mind tax breaks and social programs for thopse working in low wage jobs.But sorry,it is still inappropriate for those low wage earners to support people who make over $32 per hour in cash,and have enjoyed even more in their benefit packages.
Sober thought,indeed.It looks like governments are trying to do that.But either way,some people are about to be disappointed.
Still,yes to short term loans,IF it will get them through a rough time.But a big fat NO if they can't become competetive in the near future.
Those tax dollars,and the people who now build cars and trucks,can be used to build things we need.The Navy needs a few ships,the Air Force needs some new planes,the Army needs some new vehicles.I hear Ontarion needs some new electricity generation,our ports need expansion,our highways are in need of repair,we need to add value by refining Alberta oil in Canada,we need pipelines to make oil and natural gas available to other markets,etc,etc,and we are still mired in debt.
Spend the money on THINGS WE NEED,and INFRASTRUCURE THAT GROWS OUR ECONOMY.NOT cars.
Chris Ont
said
Dave Calgary
said
Missed my point. You are complaining about auto workers earning more than educated skilled workers. None of us know what other jobs are like until we try them. Im sure that you do work hard and in bad conditions for long hours so do thousands of people, many who are paid much much lower incomes.
The problem is that you are upset at someone questioning that you or your peers earn more than much more educated and qualified professionals & yet on the other hand you do not beleive that it should be the same for the unskilled auto workers.
I am not a city slicker, I believe in a fair wage for a job.
The recesssion may mean that like the auto workers you may too have to come back to the real world the rest of us live in and no longer expect the hugely inflated incomes in the oil patch as a right.
Snowbound
said
The inventory of cars on the lot are not owned by the dealership they are owned by GM, and GM is paying interest on these vehicles until they are sold, and GM is paying the dealership money to store the inventory on the dealerships lot. Reduced dealerships means reduced vehicle inventory means less interest and storage fees paid until vehicles are sold. Less dealerships also leads to a faster rotation of vehiciles through the system and less clearance vehicles to sell out at low prices when the models change.
Holistica
said
Cathy
said
thimst
said
Dave McClory
said
B.
said
RealityCheck
said
Converted....
said
John
said
UNREAL
said
This has turned into a bash of import vs GM.
Grow up!! People will continue to loose jobs. Still laughing??
David Browne
said
Lois in Ontario
said
John in St. Andrews
said
Sherry.........well what can we say about Sherry.......
The big three are in trouble. The Foreign makers are OK. Why? Unions. They were necessary many years ago to protect the workers, but since the 70's they have been unrealistic. Time to go CAW.
Those plants, dealerships and the jobs aren't lost. We still need to buy cars, this will actually make the good cars (ie. not the big three) cheaper
FRED
said
Ryan the Calgarian
said
Dan Ont.
said
Gmac
said
Pierre from Ottawa
said
Wekk, oour name is on their list
said
The letter came and nobody is happy about it. Especially the owner of the dealership.
You are talking over 100 employee will be out of a job in the coming months.
What is the point of getting more bailout money from both countries!
Let the whole thing fall. Let's all start to get the line up. Get the money to pay them one way or another!