GM' Bowling Green expansion on hold

[Oracle of Delphi]

Plans announced last year to move 2,000 General Motors jobs from Wilmington, Del., to Bowling Green appear to be on hold, United Auto Workers Local 2164 President Eldon Renaud said yesterday.

"The future does not look good for that right now," Renaud said in an interview of the plan to add the Pontiac Solstice and Saturn Sky to the Corvette factory by 2012. "The talk we are hearing is those vehicles will not be built here."

Renaud's comments came as GM announced plans to shave 10,000 from its global white collar staff of 73,000.

GM spokesman Tom Wilkinson said it was too soon to discuss how those personnel cuts could affect individual plants like Bowling Green.

"We are just starting to roll this out," Wilkinson said in an interview yesterday.

Wilkinson did not immediately return a call seeking comment on the company's plans for production of the Solstice and Sky.

Debuted in 2004 to acclaim, the sleek Solstice was one of the vehicles championed by Bob Lutz, who announced his retirement Monday as GM's vice chairman.

Shut down since before Christmas, the Corvette plant resumes production Feb. 23, Renaud said.

Making only 11 Corvettes and Cadillac XLR vehicles per hour, the factory will run at the slowest pace Renaud said he has observed in 41 years with GM.

In better times, the Corvette plant would produce up to 3,000 sports cars a month, or 18 vehicles per hour.

The Bowling Green plant now employs about 800 blue collar workers, Renaud said.

Layoffs will reduce those ranks to about 575 people by the end of April on one production shift, he added.

"At what point are we in jeopardy of losing our plant and moving it?" Renaud said. "People are very worried."

The salaried job cuts include about 3,400 in the U.S. Most of the company's remaining salaried employees will have their pay cut.

In its plan to Congress submitted late last year, GM said it would have to reduce both salaried and hourly positions so that the company could become viable for the long term. The company said it plans to reduce its total U.S. work force from 96,537 people in 2008 to between 65,000 and 75,000 in 2012, but it did not specify how many of the surviving jobs would be salaried or hourly.

GM Chief Executive Rick Wagoner, who was meeting with congressional leaders in Washington about global warming legislation, said yesterday's announcement was "indicative of the kind of things we need to do to get this viability plan in shape and respond to these tough market conditions."

Most of the cuts announced yesterday are expected to take place by May 1. GM said the cuts will vary by global regions depending on staffing levels and market conditions.

The company's statement said there would be no buyout or early retirement packages as GM had offered in the past, but laid-off employees will get severance pay, benefit contributions and other assistance.

GM also said it will cut the pay of most of its salaried U.S. workers effective May 1. The pay cuts will be reevaluated at the end of the year, GM said.

The pay of U.S. executive employees will be cut by 10 percent, while other salaried workers will see cuts of 3 percent to 7 percent, GM said.

GM faces a Feb. 17 deadline to present a plan to the government showing the wounded automaker can become viable.

GM has received $9.4 billion from the Treasury Department and expects to get $4 billion more, but the government can demand repayment March 31 if it determines the company can't become viable.

Link: http://www.courier-journal.com/article/200...NESS/902110367/

[longtooth]

Having more than one boutique operations under one roof seems to be making them squeamish. Perhaps they're anticipating the end of Corvette altogether. Solstice too. Having those two being built in Bowling Green and perhaps one or two more would justify their existence but at present any economy of scale is lacking.

[hyperv6]

I believe this is the indication the Kappa 2 or any other future Solstice is done. With the loss of the Sky there is little volume to warrant a move.

The Vettes future lies in sales and I think the Vette will hold it's own for near future.

The question is will GM want to move another car into BG? IF so that would mean the C7 would may share a platform with another car. Apha for the C7 if it ever comes off hold.

BG is losing the Caddy so I expect GM will have to do something to get the C7 approved in this climate.

[FUTURE_OF_GM]

I believe this is the indication the Kappa 2 or any other future Solstice is done. With the loss of the Sky there is little volume to warrant a move.

The Vettes future lies in sales and I think the Vette will hold it's own for near future.

The question is will GM want to move another car into BG? IF so that would mean the C7 would may share a platform with another car. Apha for the C7 if it ever comes off hold.

BG is losing the Caddy so I expect GM will have to do something to get the C7 approved in this climate.

Why not build the Solstice (gen II) along side the C7?

[hyperv6]

Why not build the Solstice (gen II) along side the C7?

I am in favor of the Kappa II with a C 7. But in the real world right now GM has no money for either program. We will be lucky if the C7 shows before 2016 if it makes it at all.

Based on GM's health and the economy I just don't see either getting a green light soon.

The future is in just too much flex to predict that far out with anything involving GM and the economy.

Edited February 20, 2009 by hyperv6

[poly]

I am in favor of the Kappa II with a C 7. But in the real world right now GM has no money for either program. We will be lucky if the C7 shows before 2016 if it makes it at all.

Based on GM's health and the economy I just don't see either getting a green light soon.

The future is in just too much flex to predict that far out with anything involving GM and the economy.

The move to BG was cancelled last fall. Wilmington was made aware of it then.

[daves87rs]

Killing the Vette? Then at that point GM would be better belly up....

I always wondered why they just could not have just added a few more Kappa coupes....

[Drew Dowdell]

I understood that Wilmington was way under capacity with just the Kappas being there. Wilmington used to pump out some of the high volume cars.

[turbo200]

Killing the Vette? Then at that point GM would be better belly up....

I always wondered why they just could not have just added a few more Kappa coupes....

would it be so wrong delaying the introduction or new development of the program for a few years? either continuing with the current version, revising it somehow extensively yet cheaply, or simply discontinuing the line for a few years....corvette is a landmark product for GM, but with other companies, take Honda for example, they get thier mainstream product critically and public approved first, earn massive profits, then work on supercars or halo projects like S2000 or NSX [first one's lingered for over 6 years, second one is on indefinite hold]. i completely agree the corvette is an important line, however, i would prefer GM had the sufficient development money to take the line where it needs to go, to be true porsche competitors in performance and style/quality. it wouldn't take much to get the current vette there, but i'd personally rather see them take the right amount of time to make it well produced and progressive, not simply matching existing quality, but trumping competitors in engineering and design for years to come when it debuts.

[longtooth]

I understood that Wilmington was way under capacity with just the Kappas being there. Wilmington used to pump out some of the high volume cars.

It's GM's closet.

A forest of deactivated robots stand silently in darkness awaiting orders that will never come.

Conveyors to nowhere bear mute testimony that Saturn L was once built there.

The blood sweat and tears of three generations of workers have melded with the cinder-block walls.

It's like a museum.

When production resumes, on Monday the 23rd of February, the build-rate will be just 4.5 vehicles per hour. Despite their quirks, the car's a solid build. The hardtop Solstice is blessed with seductive lines. Sure to be a rarity when it all wraps up. The partially finished vehicle, before the sheet-metal is afixed is sturdy enough to be a bulldozer.

There I go running off at the keyboard again.

[Oracle of Delphi]

Think about this, instead of the Kappas moving to BG, perhaps the Corvette will come to Wilmington ...

Edited February 21, 2009 by Pontiac Custom-S

[Drew Dowdell]

Think about this, instead of the Kappas moving to BG, perhaps the Corvette will come to Wilmington ...

that's kinda where I was going with my question.....

[Oracle of Delphi]

that's kinda where I was going with my question.....

And if GM survives all that is going on, maybe something else too ...

[daves87rs]

Think about this, instead of the Kappas moving to BG, perhaps the Corvette will come to Wilmington ...

???

[longtooth]

I think no way.

Then I think maybe Vice President Biden might be a gearhead.

Maybe President Obama has secretly always wanted a 'Vette.

Nothing's impossible.

[regfootball]

camaros and firechickens in wilmington?

[regfootball]

won't vette faithful cry foul if the vette is built anywhere besides BG?

hey, would taking BG out of the mix be a potshot at a certain KY politician for bringing in all the furriners and dissin them in the hearings?

[FUTURE_OF_GM]

And if GM survives all that is going on, maybe something else too ...

Camaro or G8?

hey, would taking BG out of the mix be a potshot at a certain KY politician for bringing in all the furriners and dissin them in the hearings?

Edited February 21, 2009 by FUTURE_OF_GM