Craft Centre Extending Down Time

[Marc NY]

I just recieved some more depressing news on Lansing Craft Centre production schedules.

Marc,

I just got back to work tonight after 2 days off. I noticed a memo tonight that the Craft Center will be down next week, March 7 thru 11th. You do not have to reveal your source. No mention of a start up date. Maybe its going to be a week by week thing based on sales? Have you heard anything?

We supply a lot of parts for the Chevy Trailblazer and that assembly plant in Ohio is down next week too. Here a year ago we could not keep up. I think its getting real slow around the whole GM corporation.

Car sales in a lot of segments still continue to be very weak.

[FUZZY]

The GM Janesville plant is also down for two additional weeks. Originally scheduled for four weeks beginning March 14 and into April, will now be 6 weeks down time.

Guess the public has decided they're happy with what they have (good reliable vehicle, more than high enough insurance premium) and don't want to spend more money than they need/have to.

[kwhopper89]

GM to cut jobs
General Motors Corp. will cut about 60 jobs at its Lansing Craft Centre because of cuts of production of the Chevrolet SSR roadster, a union official said.


The automaker is in the middle of a temporary shutdown at the plant through March 14 at the earliest.


When Lansing Craft Centre employees return to work from their Jan. 31 temporary layoff, they will produce 40 SSRs a day, down from 70 a day.


"The fact is that there are going to be some layoffs," Brian Fredline, president of UAW Local 1618, told the Lansing State Journal for a Monday report. "We won't know the exact number until we're up and running at the new line speed and we see how things go."

http://www.freep.com/money/business/irep8e_20050308.htm

[RSHottel]

I know most of the people who already have SSR's think it is good not to sell as many but why doesn't GM just cut the price a little or offer a nice low interest rate. That way they can sell more SSR's and still keep the workers on at the factory. Maybe my economics are not good but I think they would lose more money cutting production. Especially when they still pay 90% salary to the laid off workers. I mean they are paying them anyway so why not make some money and sell some SSR's. Maybe that is one of the reasons the foereign car makers all have increased sales while GM is down. Over priced cars and trucks will do that. Maybe GM needs to learn another lesson like with the ZR1 corvette back in the 90's. There is also talk on some other boards that GM may price the new Z06 up too high for most people. If that happens they will not sell many of those vehicles either. But who am I... just a car and truck buyer that manufacturers rely on.

[Ken Thurm]

I heard it will be down for 90 days!
Ken

[Purple Penelope]

I believe the one issue which has been sadly over estimated is the sales potential of this product line. However GM came up with the numbers for production quotas and is now moving away from actual sales...and getting worse. Supply exceeding demand has dealers loaded w/inventory, the Craft Center on layoff, and possible extention of that down time.

Vehicle price was factored in the initial production determination. Producing 70 vehicles a day was the decision to meet expected sales demand. Sales demand appeared correct until the '05 model came into existence. Now, two Model Years (MY) are available, but the '05 offers a new engine, for about the same price as an '04. Who is going to buy the remainder of the '04's??? A GM discount spurred some '04 sales, but not the kind of inventory movement to continue to match output production.

Some 6000 vehicles (guesstimate from previous thread numbers) now in showrooms not being sold. New production outputs when the Centre resumes working, should be closer to 40 units per day. Naturally less workers are needed for lower production numbers; now layoffs are projected.

Redressing the production output appears to be the only way to match up with sales. There are not enough fringe buyers out there to purchase an SSR even if the price was lowered to $35,000. The SSR is a distinct and individual vehicle. If GM is to sustain the vehicle line through future production years, it has to be based on historical sales. If it costs more (which I doubt) to produce fewer then so be it. I, for one, would prefer to keep it that way.

P/P

Peace

[kwhopper89]

I just got out of a meeting here at work. Looks like my employer (the IRS) is going forward with Competitive Sourcing (Outsourcing) of the entire 'seat management' functions by FY2009. (Helpdesk - Desktop repair - Local network support - etc...) With 24 years, 5 months time in right now, I will be eligible for an early out this October. Hummm - retired at 44 - WITH an SSR in the garage. That may be an offer I just can't refuse.

After a bit of a break to travel - I'll be able to 'supplement' my retirement income with a NEW job. (Read: One that I like) Maybe I'll sell Chevrolets!!! Perhaps I'll open my 'BBQ Tri-Tip' delivery service? Who knows - but I'm ready for the next chapter!!!

[Buffy]

Dang kwhopper89.

The old bitter-sweet pill to take. It happened to me and everything turned out better... Better job, better pay, etc.

Take the package and keep your face looking forward and not back!

[Marc NY]

Originally Posted by kwhopper89

... After a bit of a break to travel - I'll be able to 'supplement' my retirement income with a NEW job. (Read: One that I like) Maybe I'll sell Chevrolets!!! Perhaps I'll open my 'BBQ Tri-Tip' delivery service? Who knows - but I'm ready for the next chapter!!!

Hey Keith,

I just know you will be able to find many other opportunities to express your talents. Since you have a great photographic eye you might take up some extra photographic/designer work similar to what I had done. I got laid off for almost 3 years from GM in the early 80s so I started up a wedding photo/video business. It was slow at first (video weddings) but I really got to meet a lot of great people. Heck I even was able to eat out every Saturday with my lovely assistant (my wife)!

Heck... I just know you will do "fantastic" in whatever field you choose. I just hope you will still be sharing your time with us on here too.

[tonystoolroom]

Hi,

I spoke to my dealer today, he said that the SSR I ordered last month is scheduled to be built March 28, for what its worth

[kwhopper89]

Originally Posted by tonystoolroom

Hi,

I spoke to my dealer today, he said that the SSR I ordered last month is scheduled to be built March 28, for what its worth

What did you order - 6 speed???

Build Dates - now there is something we haven't 'been looking forward' to in a long time. Ahh - the good ol' days. I think mine slipped production week several times - but then again, that was during the summer/fall '03 and the bugs were still being worked out!

For what it's worth - it's worth the wait!

[Scott 0168]

Originally Posted by tonystoolroom

Hi,

I spoke to my dealer today, he said that the SSR I ordered last month is scheduled to be built March 28, for what its worth

I do not think it will be built March 28. Thats an Easter Holiday for General Motors!

Scott 0168

[Marc NY]

Originally Posted by tonystoolroom

Hi,

I spoke to my dealer today, he said that the SSR I ordered last month is scheduled to be built March 28, for what its worth

Hey Tony,

I believe your dealer meant to tell you that your SSR would be built the Week of March 28th which is GM's standard method of stating when your build date will be... "WEEK OF"

Thus, Scott was correct in what he is said about Monday the 28th being a holiday at GM, for it is indeed an extra day off.

Ps. Ya Gotta love Dingus Day

Marc is right. I had to explain to a Cadillac salesman what "TPW of" meant when I was trying to buy a CTS a couple of years ago, he didn't have a clue!
Since the 28th is a holiday, that means it could be built on any day from Tuesday through Friday.
Keep your fingers crossed they don't build it on Tuesday. I wouldn't want one built just after a long weekend, or a long production shutdown.
I'd rather they got in a little "practice" first.
I once bought a new Cadillac, that had been built on January 5th. (The date was on the build sheet in the trunk.) I thought it was a "sign" since that's my birthday.
When about two dozen things had gone wrong with it, I looked at a calander and realized that 1-5-79 was the day the plant reopened after being shut down for two weeks for Christmas, and new year.

[Marc NY]

Originally Posted by Sam Fowler

... Keep your fingers crossed they don't build it on Tuesday. I wouldn't want one built just after a long weekend, or a long production shutdown.

Hey Sam,

The vast majority of workers come back right after their holiday. Those bad build days are pretty much long gone..

[tonystoolroom]

I ordered an auto, sorry, but manual shift is no fun in NY traffic.

[chuckbutcher]

I hate layoffs, I hate having to do it to my help and go to great lengths to avoid it, but the reality of big ticket items is that the market is tough to predict long term. Any softness in the market and you're out on a limb. I do construction contracting, primarily residential, and there are a myriad of factors that can kill or soften my market, expensive trucks (that are barely trucks) share some that riskiness. Sure my ticket is a lot bigger than an SSR and I'm not a fly speck on the map compared to GM, but GM can't exist if it doesn't manage it's market. Sucks that the Craft Center is laying off, but sadly it's true that it also won't hurt the value of our SSRs. Geeze Louise, that sounded cold hearted...

[kwhopper89]

GM Lansing Craft Centre Back at Work
Beth Shayne

http://www.wilx.com/news/headlines/1364367.html
(Check out the small video clip of the story - the link is on the right side of the above link - a few shots in and around the LCC...)
High power, and low volume; that's part of the appeal of the Chevy SSR.

Rarity breeds luxury, and this car is rare.

"We [sell] about six a year; that's one every two months," explains Shaheen Chevrolet inventory manager Gary Slater. He calls it appropriately stocked, though their dealership never has more than a couple of them on hand.

He says demand has slowed significantly since the cars roll out in 2003. What's more sales in 2005 are already 20 percent below year-to-date sales for 2005. He's concerned that Craft Centre's produced more of them to move, and they simply can't sell GM's target number of more than 13,000.

Because it's a convertible, there is a seasonal factor to sales. Slater says inquiries are much more common in warm weather months, but a price tag of about $50,000 keeps it in the low-volume category.

UAW Local 1618 President Brian Fredline is always hopeful things will change. He's cautiously optimistic sales will rebound, but active in pursuit of a back-up plan.

"We're out there searching for another product for Lansing," he says.

Fredline believes the SSR will have a following for a number of years to come. Slater, on the other hand, has heard rumors the 2006 model will be the last.

As for the plant, Fredline says GM has confidence in them and considers them critical to specialty vehicle production. "We've got a long history of survival. The SSR will not be our last product."

[kwhopper89]

Layoffs continue at Craft Centre
Plant closing for 2 more weeks; job cuts expected

By Barbara Wieland - Lansing State Journal

Layoff timeline
• Dec. 29: GM says it will close Lansing Craft Centre for five weeks in January, February and March.

• Jan. 21: GM says it will keep the Craft Centre closed between Jan. 31 and Feb. 25.

• Feb. 18: Shutdown extended through March 14.

• Monday: Workers return.

• Thursday: Two weeks of layoffs in April announced.

Source: Lansing State Journal research

The 500 workers at General Motors Corp.'s Lansing Craft Centre are preparing for layoffs yet again.

The assembly plant that makes the Chevrolet SSR will be shut down the weeks of April 4 and April 11. Employees will return on April 18, but permanent layoffs are expected.

Workers, notified of the new round of temporary layoffs Thursday morning, had just returned Monday from a six-week shutdown.

"This is part of a continuing effort to bring production in line with market demand," GM spokeswoman Kim Carpenter said.

On March 1, there were 6,500 SSRs in stock - a 217-day supply based on the rate of sales, according to Automotive News. Generally, a 60- to 75-day supply is considered ideal.

Employees returned this week to a plant that makes 40 SSRs a day, compared to the 70 daily it used to make. The slower rate means some workers will be laid off, but it's still unknown how many jobs will be cut permanently, Carpenter said.

Brian Fredline, president of United Auto Workers Local 1618, said that demand for the SSR will pick up with renewed marketing efforts. The union represents 400 people at the plant.

"GM still thinks the SSR is a signature product. In the near future, GM will be doing some things that should help to spur its sales."

Contact Barbara Wieland at 267-1348 or bwieland@lsj.com.

[RSHottel]

I still say they should lower the price and or put in some incentives.

[REBEL]

This cost me less than one year’s earnings, and it’s a lot of machine. They say it was a brake even build "GOAL"for G.M. just to produce it. Hold the price; fix the small problems with longer warranty.
If you have a litter of cats to get rid of, sell them do not give them away. People who want those bad enough to pay for them will take care of them. If they are free they may not be treated well, as it might be people who want them on the spur of the moment at a low cost. Besides why would we want the price dropped, after we all bought? We need the price to rise with low production and great support from G.M.
We need this to follow the Vet not the Feiro (sp)
LOOK Buffy no Price mentioned