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GM’s Fight to Survive

jcme — Mon, 24 Nov 2008 18:38:41 +0000

Last night I popped by my parents’ house for dinner. The discussion, as usual, drew itself over to current events and how the economic struggles are impacting everything, especially the automotive industry. Car companies are struggling to keep factories open and to keep dealerships in business, so it’s tough times for everyone. My dad commented on some things that he had heard from a friend of his and how the industry is gripped in a sort of mass panic.

It certainly doesn’t seem like a good time to be in the automotive industry.

Yet some companies are handling the struggles better than others, I guess. Toyota, Honda, Nissan, and Hyundai all seem to be able to open up new factories despite the turmoil. And GM, Ford, and Chrysler are struggling to roll out new plans that may have customers thinking twice about domestic American cars. But is that really what is needed from the Detroit Three? They’re banking on a bailout, it seems, and may face collapse if something doesn’t happen soon.

GM, especially, seems locked in a fight to survive the times. With another factory facing cuts in Canada in Oshawa, Ontario, it seems like there’s no end in sight. GM is banking a lot on the Chevy Volt, which is coming in a couple of years, and will need every ounce of its resources to survive these tough times. How that will impact sales of Chevy cars and trucks in the long-term remains to be seen, as does any news about this bailout.

One thing’s for sure, though. GM is going to keep fighting.

GM Opens Russian Plant

jcme — Wed, 12 Nov 2008 11:08:14 +0000

With all of the talk of global expansion, General Motors is celebrating the opening of its first plant in Russia. The plant, which is located in St. Petersburg, opened November 11, 2008, with the St. Petersburg governor and Carl Peter Forster, the president of General Motors Europe, there for the occasion.

The Russian-made Chevrolet/General Motors plant has been in the works for quite some time and will represent a big boost in the European markets for the company. The plant is worth $300 million U.S. and is known as a “flexible assembly plant” in many circles because of its ability to construct a wide variety of vehicles with efficiency and speed.

The plant has 70,000 units of capacity, which is an impressive sum for the region and will help boost European production from Chevrolet/General Motors considerably. Other joint ventures and partnerships are said to be expected in the region, with the possibility of more Russian plants right around the corner.

While the American political world may not be friendly with Russia at this point and time, there is certainly nothing stopping Chevrolet/General Motors from opening the doors of commerce and exposing themselves to new markets ripe with potential. Business is business and these companies know how to play by the rules in order to benefit from economic situations.

Production of Chevy cars and trucks at plants like these help boost the international profile and, in turn, help local economies and dealers. Everybody wins.