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Monday, November 26, 2018

“GM Plant Closures: What if this turning point in automotive history fails to turn”

“GM Plant Closures: What if this turning point in automotive history fails to turn?”

There is a revolution taking place in personal mobility, or so we are told. Zero emissions – perhaps critical if we are to effectively deal with climate change. Zero accidents – autonomous driving systems are on the way, we are told, even if we are hesitant to fully accept them. But what about zero jobs in the Heartland, as we may be left behind in this massive transition in the global economy and automotive business? Is this current "revolution" just an excuse for GM management shed its union workers, close older plants, and move operations to low-cost labor locations? What about this incongruity -- if the new wave is to feature zero emission vehicles, why is the Volt being dropped?

The GM story demonstrates that despite a government bailout in the not too distant past, loyalty to workers and communities only goes so far. GM leadership is gambling about the future, and thus product lines, bloated management, and hourly workers will be let go to make the organization more “nimble.” Perhaps this is what capitalism and creative destruction are all about. 

 General Motors has a public image that it must carefully manage, and it may not be doing it well at the moment. To close factories in bad times is understandable, but in a time of flush prosperity, it is puzzling to say the least. Repurpose Lordstown, Oshawa, and White Marsh. Remember your corporate heritage, and use it to guide the future.

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