gm to shut many U.S. plants for up to 9 weeks

http://news.yahoo.com/s/ap/20090422/ap_on_bi_ge/us_gm_factories

 

This awful. Just awful.

 

Depression is setting in.

 

yeah ... not good at all.

 

Truth be told, if it's only nine weeks, that may be a positive sign. I honestly wonder if some will ever reopen.

 

If this happens, GM is simply transferring the cost of employing these folks for 9 weeks to the general public who will fund their unemployment bennies and who will ultimately have to bail out the car companies and bring those folks back to the factories.

There are no good and simple solutions to this problem. The good solutions are complex; the simple solutions aren't any good.

 

You mean like the government taking it over?

 

Government takover is a simple solution that is not very good.

Living in the DC area, there is already more than sufficient time and energy - - and money - - wasted in the "turf disputes" that exist among various USG departments and agencies. So imagine the "Department of Car Manufacturing and Sales" (DCMS) and then try to imagine any way that ther would not be turf battles created among:

DCMS and EPA
DCMS and Dept of Commerce
DCMS and Dept of Labor
DCMS and Dept of Transportation
DCMS and Dept of Treasury (that's where the money will come from)
DCMS and Dept of Energy
DCMS and US Trade Rep

Then take a look around the USG and find all of those senior execs who know how to run an auto company - - or any really large company for that matter - - at a profit. There are a few but not many.

And to make things certain to fail, there will be grandstanding oversight and hearings by the US Congress. Don't even try to find someone there who knows anything about anything other than getting him/herself re-elected...

Simple solution. Outcome = Fail.

 

Closing May 11, reopening July 13.

http://www.google.com/hostednews/ap/article/ALeqM5jVlBVRk8xGIzXLxXF9NWK4qYmwmgD97OAU280

The expected bankruptcy filing in June will just be the cherry on top. This shutdown is going to cascade through the industry, of course. Parts suppliers, etc. will also have to shut down or scale back. And I don't know if nine weeks will be enough to clear the market of the inventory glut. Maybe for the trucks, but not for the shitty little Cobalts and Aveos.

I'm guessing July will be a great time to buy a GM product, after they slash prices and throw out all manner of incentives to clear inventory.

 

By nine weeks, do you mean 11 or 12 weeks?

http://www.cleveland.com/business/index.ssf/2009/04/general_motors_plant_in_lordst.html