Thoughts on GM and Mexico.

[Tuscany]

Without politics involved, I respectfully ask your opinion.

How many feel GM turned their backs on the American workforce by investing in a new plant in Mexico, and will it affect your next purchase?

IMO, I get that the sedans no longer sell. I get that buyer needs change. I fully understand that changing needs and timing affects the Lordstown OH. plant as being unnecessary.
I get all of that. Things change.

I never had a problem with the bailout in 2008 in order to save God knows how many jobs and surrounding service jobs. I'm a Ford truck buyer with the occasional GM. My wife likes the large GM SUVs. My daughter bought a new Buick Encore. My son is a Jeep kind of guy. In short, we buy American vehicles.. or nametags...
I get the tax cut incentive recently given to our automakers to help stabilize future growth..

I don't get the investment in Mexico. It just opens old wounds and horrific PR...... (IMO here)..unless Mary Barra doesn't feel as strong about the stability and consistency of our workforce as we are made to believe. Personally, I think this is the root of the move.

I'm not a boycott kind of guy. Boycott is a strong word, so my apologies. That hurts fellow Americans who still draw a living from GM, but others may feel different.

Thoughts?

[Alaskabound]

T, it’s a different world we live in. I have always bought vehicles based on what I thought was best for me at the time. For some reason, it has been mostly GM. In the late 70’s and 80’s when gas supplies were questionable, we had several Honda’s because of gas mileage. I lived beside a Pearl Harbor survivor, who chided me for buying a “foreign “ car so I guess there is something always going on.

While watching The Bush funeral this week, I commented to my wife that all of the vehicles involved were GM
products. I remembered when president Kenndy was shot, he was in a Lincoln Convertible. Seems some irony there someplace. So, to finally answer your question, I will still buy GM if it’s what I need. I do wish GM had been more responsive to the American workers. Bottom line, follow the money.

Dub

[cmattj]

I wont go to far as this is my Lifeline , and sure this could easily get political if all the shells are uncovered so ill touch on just a few.

So for starters have we forgotten that ford just reduced there cars to just a Mustang and a Focus this year? (fusions is on its way out) And Lincoln will be next to reduce the sedans as well. This will follow suite through all foreign and domestics Automakers as demand changes. So its not a surprise really is it??


So why GM Mexico? Well for one Cadillac was in the Tank in the early 2000. It was a North-star nightmare and CSI and sales where taking a dive. But low and behold..... The CTS was born and pumped life back into a brand that for ever had been a part of the American dream of the ultimate American Made luxury car.

Why is Mexico so important?? Well it had the newest of all the GM plants for one.. And It had the best paint and interior processes that technology could offer so it was fitting to build the infamous Escalade there right?? Maybe Since then other plants have improved with the latest Building procedures, and it was now becoming the same Quality across the board no matter where GM vehicles where built.

Whys doesn't Mexico GM just shut the doors and send the Vehicle building to the US?? Because its still the best Plant with the most current operation . America needs to be nice to its trade partners as that is what makes us "Merica" (ooops a shell almost came off). But that's just reality.

The Number 1..... BIG three MFG car in China is..... Buick. Yes they absolutely love them and who could blame them .LOL

For those who may be curious where the current vehicle you own was made, take a look at the First Digit on your VIN Number. This will let you know the Country it was produced.

It may surprise you how many start with a 2 or 3

Number .Country

1,4,5 .United States
2 . Canada
3 .Mexico
J .Japan
K .Korea
S . UK
V .France, Spain
T . Switzerland
W .Germany
Y . Sweden/Findland
Z .Italy

[Stagdad]

I have been a loyal GM buyer since I first started driving, with an occasional Jeep purchase. It really hurts to watch them do this. It hurts watching them make stupid decision after stupid decision. Stop building Saturns, purchasing Saab & Hummer. Stop building an economy car and import Korean stuff and re badge it instead. I bought each daughter a Cobalt (Lordstown) and had no problems with them. Good reliable cheap transportation.Their electric car isn't selling so what do they decide? Let's cut "normal" car production and put more focus on electric and autonomous driving vehicles. Putting on features I don't want and didn't ask for. The latest garbage is auto start /stop. It adds weight, complexity and cost and I dare say very little MPG savings. Most on the forums,like myself despise it. I don't care if everyone's doing it.It kept me from a new Malibu purchase a few years back.
GM was once a leader, be a leader again,don't be a follower. The only thing that keeps me coming back is the GM credit card that I earn $$ towards a new purchase. I usually end up knocking 3-5K off my best negotiated deal with it. I am really thinking of cutting it up but I see Ford and Chrysler doing similarly stupid stuff. Tomorrow is December 7th so don't suggest a Toyota. I work for a once great american Icon and see them doing and focusing on the wrong picture, so and our slide towards the bottom is painful and scary. My only solace is that our competitors are in more disarray than we are. Rant complete, Brian

[akorcovelos]

Based on earnings reports from Q2 of FY19 this move is a simple cost reduction initiative. Labor in Mexico is much cheaper if you can control quality, and they don't need to deal with Unions or high employee benefits costs. It doesn't sound like the political issues like the raw material tariffs are driving the move as GM claims they get most of their raw materials from the US. Their profitability is down year over, and moves like this are typical of global enterprises when they're looking to make earning statements look better in a short time frame.

Good read if you follow the industry market: https://www.freep.com/story/money/cars/ ... 819761002/

All the automakers seem to have lost focus on the VOC and are building vehicles to compete with each other rather than competing to meet the want's and needs of the consumer. The market still does dictate where they spend development money, which is why Ford is transitioning to only building SUVs, trucks, and Mustangs in the US market. That's what people are buying, sedan sales were abysmal the last several years. My local Ford dealership has expanded it's footprint 3 fold in the last year, and filled all that open space with guess what, trucks.

I read another article that was predicting EVs would make up 40% of the market by 2025, and the big 3 don't currently have a strong offering in that sector, so watch for most new platforms to be hybrid or full EV in the coming years. Younger generations are less interested in driving period, and certainly less concerned about performance, so the market will adapt as they become the majority consumer, which means autonomous cars that allow them to play on their phone while they commute to work.

I remember turning 16 (vaguely) and the first thing I did was get my license. Now I have several friends with kids that are 10-20+ years old that still haven't got a license and use Uber or Lyft to get around...Don't get me started on the loss of manual transmissions, lol.

[Tuscany]

If I were to give my un-informed guess on GM thinking, my money is squarely on removing the American workforce from the equation.
Think 10 years down the road has always been key.. The issues we are currently dealing with, from our little corner business perspective seems to have a common thread to whoever I talk to.

I know my brush is painting broad, but bear with me..
Our old school workforce is getting old. Some are lazy, and often hurt, or looking for a reason to be hurt which leads to excessive comp insurance.
Our youth is entitled, and not prepared to sweat, deal with normal life pressure, or mentally equipped to take simple instructions without feeling badgered and disrespected. Constructive criticism brings instant tears. Most were brought up with undeserved confidence because they never benefited from the positive lessons learned when dealing with failure. Most feel they will be millionaires by 30, when while still playing video games in their parents basement at 28. The cold truth is that the only saving grace will be Socialism..which is coming eventually..and you know who/what major corps. will be paying that bill?

Removing emotion and loyalty to America, I can understand GM investing in an area where work ethic remains. I understand that electronic power and autonomous vehicles ARE the future. We may hate them but we are not the future customer in the decades to come.

My son will be taking over our business. My advice and 10 year plan? Mechanize to the best of our ability. Be rid of inconsistencies which usually revolves around labor, and keep his eye on the food trends. Lessons learned and now being taught again by GM.

[Big Block Power]

Sorry this isn't just a GM thing. Ford just just down there factory last year and moved to Mexico. They are retooling for the Bronco. This is really going on with all of them. Yes FCA has credit card Benifits as well. I've bought GM my whole life with the Toyota on the inside too and now Lexus. My wife will never give up her suburbans. We were talking about this last night.
I thought I would never buy a Ram but I'll tell you some day maybe. I will never buy a new Honda or Toy like Dub it doesn't fit my needs.

[Ytmsn]

If I were to give my un-informed guess on GM thinking, my money is squarely on removing the American workforce from the equation.
Think 10 years down the road has always been key.. The issues we are currently dealing with, from our little corner business perspective seems to have a common thread to whoever I talk to.

I know my brush is painting broad, but bear with me..
Our old school workforce is getting old. Some are lazy, and often hurt, or looking for a reason to be hurt which leads to excessive comp insurance.
Our youth is entitled, and not prepared to sweat, deal with normal life pressure, or mentally equipped to take simple instructions without feeling badgered and disrespected. Constructive criticism brings instant tears. Most were brought up with undeserved confidence because they never benefited from the positive lessons learned when dealing with failure. Most feel they will be millionaires by 30, when while still playing video games in their parents basement at 28. The cold truth is that the only saving grace will be Socialism..which is coming eventually..and you know who/what major corps. will be paying that bill?

Removing emotion and loyalty to America, I can understand GM investing in an area where work ethic remains. I understand that electronic power and autonomous vehicles ARE the future. We may hate them but we are not the future customer in the decades to come.

My son will be taking over our business. My advice and 10 year plan? Mechanize to the best of our ability. Be rid of inconsistencies which usually revolves around labor, and keep his eye on the food trends. Lessons learned and now being taught again by GM.

Bingo. Well said Tusc. . This is valuable insight into the millennial mindset and an excellent forecast into future consumer demand.

And I think Matt, Dub and akro hit it too. It all comes down to profitability. In Mexico they don't have the Union's to deal with, nor the retirement programs, yet they can sell the product at the same inflated prices and increase bottomline profitability. I think that's it in a nutshell.

[cmattj]

And I think Matt, Dub and akro hit it too. It all comes down to profitability. In Mexico they don't have the Union's to deal with, nor the retirement programs, yet they can sell the product at the same inflated prices and increase bottomline profitability. I think that's it in a nutshell.

Well pal that’s been obvious since the 80’s . I wouldn’t think that’s news to anyone here? GM has been in Mexico since the 1930s.

Geeze where do you think a majority of GM parts are produced. You missed the bigger picture other than obvious overhead cost.

We need Mexico as much as they need us. Same as Canada. Not just for GM but for us as a strong economy with affordable goods. Ford has over 10 parts plants in Mexico as well . GM is just getting the ball rolling as it sees the future is changing.

[Alaskabound]

BBP, your wife may be smartest of all. Suburbans are hard to beat. We haven’t had a Honda in years as it doesn’t fit our needs either. We have a full size Chevy crew cab, Chevy Tahoe, & Jeep Wrangler.

Dub

[ajcampen]

“Judgment day is coming for us all”
-Sarah

[Ytmsn]

And I think Matt, Dub and akro hit it too. It all comes down to profitability. In Mexico they don't have the Union's to deal with, nor the retirement programs, yet they can sell the product at the same inflated prices and increase bottomline profitability. I think that's it in a nutshell.

Well pal that’s been obvious since the 80’s . I wouldn’t think that’s news to anyone here? GM has been in Mexico since the 1930s.

Geeze where do you think a majority of GM parts are produced. You missed the bigger picture other than obvious overhead cost.

We need Mexico as much as they need us. Same as Canada. Not just for GM but for us as a strong economy with affordable goods. Ford has over 10 parts plants in Mexico as well . GM is just getting the ball rolling as it sees the future is changing.

Ha! Yes, as usual you are right! You guys are way more informed, intelligent and articulate for me to try to keep up. After rereading what I wrote I have come to a conclusion. If you want to see what it looks like when somebody talks out of his arse, just read my lat post!

Now back to your regular scheduled program...
I'll just be over here in the corner shuffling my toe if you need me.

[akorcovelos]

You agreed with me, so clearly you can't be wrong all the time.

[Ytmsn]

Truth be told, I was pretty fast back in the day akro. Now I'm just half fast.

[liquid]

Related - Fiat opening a new plant in Detroit.