Article: Tiny Aveo a big UAW challenge - workers' prez doubting profitability

(First: Why the *&% do they always insist on calling the Aveo "tiny"??? Does every $%&% headline editor drive a Suburban!??)

Here's the issue in a nut shell:

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http://www.freep.com/graphics/todayspaper24.png

"I don't know if it is a fair expectation to be able to get the Aveo to profitability," the UAW president told the Free Press."

Last year, GM agreed to build the Aveo in Michigan instead of importing it from a lower-wage country in exchange for UAW concessions ahead of its bankruptcy.

The car will launch in mid-2011 as the smallest assembled in the U.S. -- making it the most intense test of Detroit automakers' abilities to build small cars profitably in their home country with union labor.

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Read the full article: http://www.freep.com/article/20100923/B ... -challenge

Kind of sucks for the production workers' boss man to be raining on GM's parade before the first float has even left the staging area, no?

Sounds like ...

1) He's p i s s s e d that labour concessions were made in the heart of GM's bankruptcy meltdown, and he wasn't at the table to get his 2 cents in

plus...

2) He's resentful that some of the fat profit margin vehicles (SUV's and pickups) are currently assembled in Mexico.

Lots of comments on the article here:

http://www.freep.com/comments/article/2 ... -challenge

Sad to say, but I think its the first sign that the american built aveo will be poor quality compared to it korean built predecessor.

Agreed. When the top worker is betting against his own horse before it's even left the gate = bad omen.

This doesnt sound good at all!

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Originally Posted by petrified.rabbit

Sad to say, but I think its the first sign that the american built aveo will be poor quality compared to it korean built predecessor.

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I'm not 100% sure of the quality effect - assuming the workers themselves care about it. The Orion facility won top quality awards for one of the products they made. But that was a few years ago (Olds 98, I think?), so who knows how much churn they've had in management & production staff since then.

I thought they were going to retool the closed GM facility in Ohio that produced the Chevy Trail Blazer and GMC Envoy.

For the Aveo? Nope. Orion Assembly in Lake Orion, Michigan.

See: viewtopic.php?f=50&t=28059

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Originally Posted by MetroMPG

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Originally Posted by petrified.rabbit

Sad to say, but I think its the first sign that the american built aveo will be poor quality compared to it korean built predecessor.

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I'm not 100% sure of the quality effect - assuming the workers themselves care about it. The Orion facility won top quality awards for one of the products they made. But that was a few years ago (Olds 98, I think?), so who knows how much churn they've had in management & production staff since then.

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See i was already comparing the aveo to the cobalt in fit etc. I saw a "report" that stated as far as "material" costs go the cobalt was the same price or possibly cheaper than the aveo, And the difference in sticker price was all manufacturing (or labor time). The aveo has a higher quality feel or parts, better gaps, nicer ride in my opinion, and even the base cobalt has a cheap 1980s raw plastic interior in it. So from that i already assumed the american version would be more cobalt like. An now you have a bunch of people who used to make "better" cars being put to work on gms entry level car and they arent excited about it, will just make it worse imho. Ive seen what the factory workers have done at the cavalier plant..

[quote=petrified.rabbit]

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Originally Posted by MetroMPG

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Originally Posted by "petrified.rabbit":1o8mc7zg

Sad to say, but I think its the first sign that the american built aveo will be poor quality compared to it korean built predecessor.

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I'm not 100% sure of the quality effect - assuming the workers themselves care about it. The Orion facility won top quality awards for one of the products they made. But that was a few years ago (Olds 98, I think?), so who knows how much churn they've had in management & production staff since then.

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See i was already comparing the aveo to the cobalt in fit etc. I saw a "report" that stated as far as "material" costs go the cobalt was the same price or possibly cheaper than the aveo, And the difference in sticker price was all manufacturing (or labor time). The aveo has a higher quality feel or parts, better gaps, nicer ride in my opinion, and even the base cobalt has a cheap 1980s raw plastic interior in it. So from that i already assumed the american version would be more cobalt like. An now you have a bunch of people who used to make "better" cars being put to work on gms entry level car and they arent excited about it, will just make it worse imho. Ive seen what the factory workers have done at the cavalier plant..[/quote:1o8mc7zg]

They'll be happy to work. I think that's enough incentive to do it right. BUT if you have wako union president that tells you it won't work, then the project might be doomed from the start.

Yea, I'd rather see the aveo stay in korea at this point. That guy needs fired, and someone with a more positive line of thought put into place. Innovation is what will make the car profitable, not bitching and whining.

Seems like the automotive industry is having problems. General Motors turned in a record first half for earnings this year at $6.3 billion. However, as reported by CEO Dan Akerson, regardless of the best half the automotive has had in over 20 years, it wasn't good enough. GM cutbacks will quickly follow. Here is the proof: Despite record first-half profit, GM plans major cuts

that story is kind of bias, ford had two "new" compact cars released last half of the year while gm will still selling the "same old" aveo, and now they screwed up with how long it took for the sonic to hit the market, it lost the interest of press hype to carry a sales boom.

The cutbacks needed to occur though, as long as they are corporate and not work force.

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Originally Posted by jenifer

Here is the proof: Despite record first-half profit, GM plans major cuts

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Starting to look like the Sonic was stillborn if the Barra (SVP Global Dev) quote about halving the number of GM models by 2018 is accurate. Hope she was just puffing for the sake of the financial analysts and some positioning with labor.

i dont think the sonic will die, but the over lap should die.

GM to Release 25 New Models by 2011 (The Torque Report)

with the over 20 already available. streamlining is what makes the companies with out problems succeed. vw, bmw, mercedes, ford, even chrysler has figured it out. you dont build your own competition (if you offer a better car, why build the other?). You build your cars to be better than the other companies.

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Originally Posted by petrified.rabbit

i dont think the sonic will die, but the over lap should die.

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Sonic and Cruze are both new models, share some engines, and overlap on price... which one wins if the GM line is really trimmed to a width of 14 models (marques) by 2018? Many doubts that this will really happen, but just assume Barra is quoted accurately (and being honest/realistic). Doesn't seem like there would be space for both. If the Chevy line does get extended on this end with the Spark, the Sonic will then be overlapped on both sides.

Just curious if anyone knows where the Sonic/Aveos sold outside of the Americas will be built?

honestly, i think the aveo will be the hatchback, the cruze will be the sedan, the will not bring the spark over (unless price point and MPG are really needed). And they will have 1-2 bigger cars. And 2 suvs. That would be chevy with 7 different cars.

Don't forget the pickups. The Silverado is a strong Chevy seller. I'd Say the cruze/sonic hb, Impala, Equinox, Tahoe, Suburban, & Silverado (in 1500-3500)

they will likely keep atleast one vehicle in each class, wonder where the monte carlo, camaro, and corvette sit in all this?

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Originally Posted by Ratchet104

Tahoe, Suburban, & Silverado (in 1500-3500)

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for the most part, that is "one" vehicle. just different wheel bases, and suspensions.

Good point rabbit, i dont think the full size trucks or suvs have much to worry about, mostly the small to midsize vehicles that tend to be more varied.