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More Layoffs coming

Lansing State Journal said:
... Continued slow sales of the sporty truck led Lansing's largest private employer to decide to close the factory for a month starting Jan. 31.

When it reopens Feb. 28, its rate of production will be slashed almost 43 percent, from 70 SSRs to 40 a day.
Do you remember these comments a little while ago ... "There will be extended downtime at the SSR plant during the 05 MY"? Well GM seems to be keeping its goal of not over producing 05s like they did with the 04s. Sorry to see them go to 40 a day vs. 72 a day. It means that the markets continue to be weak.
 

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On the other hand, if GM is finally bringing production in line with demand, instead of over-producing, desirability should increase and our toys should hold value better.

:thumbs

It reminds me of my electronics retail days in another lifetime. I managed a store for a company with 9 stores in a city of less than 1 million, and when a new highly desirable piece was being introduced, we all had a waiting list of customers wanting to be first with it. Unfortunately, the most eager customers would call all 9 stores to get on the list, and when the new toy finally showed up in enough quantities to meet demand, we all had an overstock, and would end up with a major discount on the item within a couple of months.

I usually came out ahead - I would phone the customers when the item was in transit and get deposits from them - most managers would get around to calling after the toy showed up, and realize too late that their huge waiting list had dwindled badly.

Same thing happened to GM - they had to base their projections on the initial reaction to the SSR - the whole world wanted one. Then reality set in, and most of the droolers realized they couldn't put it together, or the MSRP at $12000 or so more than projected put it out of reach.

The encouraging part is that it would appear GM will continue to build the SSR. I'm starting to think 427 6 speed again. :)

Where's JimJack??? - can we get any tidbits or hints on the future of our favorite toy?

Ray
 

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More Lansing 'adjustements'

General Motors idles second Lansing plant
February 18, 2005, 5:38 AM


LANSING, Mich. (AP) -- General Motors Corp. is idling a second Lansing-area plant to trim a backlog of unsold vehicles.

The Lansing Grand River assembly plant will close for a week starting Feb. 28, marking the first time the 4-year-old factory has halted production to bring inventories in line with demand, GM spokeswoman Heidi Magyar said.

The plant's 1,500 employees build the Cadillac CTS and STS sedans and the Cadillac SRX sport utility vehicle.

"December, January and February are hard months for sales. Nobody wants to go outside in the cold, and it's just after the holiday season," Magyar told the Lansing State Journal for a Friday story.

The newspaper said representatives of United Auto Workers Local 652, which represents hourly workers at the plant, could not be reached for comment Thursday.

The Lansing Craft Centre was shut down Jan. 3 because of a backlog of unsold Chevrolet SSR roadsters. The 500 workers at the plant in Ingham County's Lansing Township are furloughed until March 5. They are receiving unemployment and supplemental unemployment benefits totaling 95 percent of their net pay under terms of their UAW contract.
 

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Seems to me GM is paying 95% of employees pay not to produce a vehicle to try to let inventories come down is just not right not to mention costly. To all of you who own an SSR I guess it will keep it's value up. Business wise if they dropped the price to what people are willing to pay they could maybe sell a few SSR's instead of letting them sit on the car lots. Out here in California they are still sitting. Of the 50 I have been watching only about 5-10 have sold since the first of the year.
 

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Hope I'm not wrong, but these folks didn't just build SSR's. What I don't know is what percentage of output was SSR vs others.
 

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LCC only make the SSR for now...

GM extends layoff, could cut jobs at Craft Centre
SSR production to be reduced at Lansing plant


By Barbara Wieland
Lansing State Journal

Advertisement


General Motors Corp. is extending the layoff at its Lansing Craft Centre assembly plant for two weeks, and permanent job cuts at the plant are likely.

When the plant's 500 employees return to work March 14, they'll crank out 40 Chevrolet SSRs a day, down from the rate of 70 a day when the current layoff started on Jan. 31.

"We originally took the downtime to change the line rate," GM spokeswoman Kim Carpenter said. "We still don't know what staffing we'll need to run the plant at that rate."

Brian Fredline, president of United Auto Workers Local 1618, said job cuts are inevitable.

"It used to be a possibility. Now, it's definite," he said.

Fredline said the union is trying to bring more work to the plant. The Lansing Craft Centre makes only the SSR, but he said it is capable of producing three other vehicles at the same time.
Employees who are laid off will receive 95 percent of their net pay in unemployment plus supplemental unemployment benefits for 48 weeks.

After that, workers enter GM's JOBS bank, where they may be called on to do nontraditional work, community volunteer projects or receive further education. At the JOBS bank, they will receive full pay.

The layoff at GM likely will affect workers who supply parts to the assembly plant, too.

American Specialty Cars Inc., with 257 workers in Lansing, supplies 42 subassemblies to the Lansing Craft Centre. Those workers are currently laid off. Company spokesman Tim Yost couldn't be reached for comment Friday, but the company has previously said that production at its Lansing plant is closely tied to that of the Lansing Craft Centre.
 
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Discussion Starter · #10 ·
The Lansing Craft Centre (LCC) went back to work on March 14th and they haven't built 40 in any day. They are shutting down again for 2 weeks starting April 4th and are returning back to work on April 18th.
 

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blackbird said:
The Lansing Craft Centre (LCC) went back to work on March 14th and they haven't built 40 in any day. They are shutting down again for 2 weeks starting April 4th and are returning back to work on April 18th.
It almost seems like the plant has been shut down more than it has been operating this year. Not a good sign. Maybe GM will take notice and do more to sell SSR's than thet have been already.
 

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MY biggest complaint as a dealer there are continually rebates on all gm lines except the SSR along with rates even with a 5.9 rate the SSR sales would increase the biggest draw back was all 2004 model year it was no rebate on SSR then . ..the people who took advantage of year end savings .....got the shaft by gm and the dealer got the shaft also by taking losses to get the vehicles off the books and then gm comes out with a $7500 lump sum payment . ..alittle much a little late if they would have put rates and smaller rebates throughout the year the surplus at year end would not have been necessary . ...THIS IS TO GENERAL MOTORS ....HELP US OUT A BIT ....HAVE YOU CONSIDERED THINKING OUTSIDE THE BOX? ??


william mork

www.reliablechevy.com
1-800-725-5800
 
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Discussion Starter · #13 ·
Lansing Craft Centre is down starting Monday May 23rd through the GM shutdown of July 18th.

6 production weeks in a row.
 
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Discussion Starter · #14 ·
ISLANDDREAMS said:
MY biggest complaint as a dealer there are continually rebates on all gm lines except the SSR along with rates even with a 5.9 rate the SSR sales would increase the biggest draw back was all 2004 model year it was no rebate on SSR then . ..the people who took advantage of year end savings .....got the shaft by gm and the dealer got the shaft also by taking losses to get the vehicles off the books and then gm comes out with a $7500 lump sum payment . ..alittle much a little late if they would have put rates and smaller rebates throughout the year the surplus at year end would not have been necessary . ...THIS IS TO GENERAL MOTORS ....HELP US OUT A BIT ....HAVE YOU CONSIDERED THINKING OUTSIDE THE BOX? ??


william mork

www.reliablechevy.com
1-800-725-5800
i agree ... gm needs to step up to make this halo symbol for GM a hugh winner
 

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potvin48 said:
Lansing Craft Centre is down starting Monday May 23rd through the GM shutdown of July 18th.

6 production weeks in a row.
When production resumes - the 2006 SSR's will roll off the line.

When GM releases the monthly figures for May (1st week of June) - we'll know the final 2005 count...
 

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Slow Sales continue...

ISLANDDREAMS said:
...THIS IS TO GENERAL MOTORS ....HELP US OUT A BIT ....HAVE YOU CONSIDERED THINKING OUTSIDE THE BOX? ?? william mork
We all are certainly not happy about the continued sluggish sales of the SSRs. However, at least GM learned their lesson and are not over producing them like they did in 04. Over production had a major impact in the glut of the SSRs and as a result "tanked" the prices and profits went out the window for the dealers and then they ended having to give them away. :nono

Unfortunately William, the vast majority of dealers helped contributed to the huge problems by OVER pricing them and then continued to "scream" at GM to produce as many as they could ... "more more" was the cry of the dealers earlier in the year etc etc... :(


Ps. Some of you might recall in one of my threads late last year that I had reported that one GM engineer had told me ... "Quality is WAY UP ... unfortunately SALES are way down!" His next comments never rang more true... it seems that all the people that had really wanted an SSRs pretty much now have one. Then later on he told me that to keep the supply in check they would be scheduling at least 17 weeks off next year in MY 05 too... hmm sounds like it was very close to reality now that we can look back.
 

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Another Shutdown for GM's Craft Centre

A glut of Chevy Super Sports Roadsters (S.S.R.) forces General Motors to shut down the Lansing Craft Centre for another two weeks.

A G.M. Spokesperson says the shutdown is due to too many S.S.R.'s relative to demand

As a result G.M. will once again halt production to thin out their stock pile of vehicles July 25th to August 5th.

The announcement means the Lansing Craft Centre will be shutdown for more than three months when the shut down weeks are totaled for 2005.

About 400 employees will be temporarily laid off.


http://www.wilx.com/news/headlines/1646707.html
 

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Apparently there are just still too many SSRs in the float so GM is attempting to let it get down farther. Cuurent SSR sales are reportedly around 40 a day.
 
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