New Malibu Delayed; Delta Future in Doubt?
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New Malibu Delayed; Delta Future in Doubt?
Could this be political posturing with the UAW or is something more happening here? I can't imagine why they would delay a car as crucial as the new Malibu. Can someone "in the know" chime in here?
http://www.nyse.com/interface/jsp/NH...sdowjones=true
http://www.nyse.com/interface/jsp/NH...sdowjones=true
DETROIT -(Dow Jones)- General Motors Corp. (GM) has informed the United Auto Workers union that the auto maker delayed production plans for a Chevrolet Malibu slated to be built in Fairfax, Kansas, in the near future. It is the second product program GM has told the UAW it is delaying in recent days.
In an informational flyer distributed to UAW employees in Lordstown, Ohio, and posted on UAW Local 1112's Web site, union officials told workers they had been given "news from the corporation that they have suspended two new vehicle programs for North America." Local 1112 is one of two union locals representing more than 4,000 workers in Lordstown, where GM builds smaller cars, including the Chevrolet Cobalt.
On Tuesday, Dow Jones Newswires reported GM had told the UAW that it is halting development of its so-called Delta vehicle program. Lordstown builds Delta-based cars and officials there have been negotiating a new labor agreement that would allow GM to cut labor costs at the plant in return for being awarded the next round of Delta cars, slated for production in 2009.
The flyer posted on the Local 1112 site mentions the Delta program suspension, and said that GM has "also delayed the Epsilon program which was under construction at the Fairfax, Kansas, assembly plant where they currently build the Chevy Malibu."
A GM spokesman and a spokesman for the UAW couldn't immediately be reached for comment.
While the threat to delay the Delta small car is seen as potential political posturing by GM in an effort to win UAW cooperation, delaying Epsilon production plans could hurt GM in the near term, as it aims to revive its position in the U.S. market. The Malibu, which is slated to be launched as a redesigned vehicle in the near future, is aimed at better competing with Toyota Motor Corp.'s (TM) Camry sedan.
Meantime, a UAW official at the Lordstown facility said talks on the agreement - dubbed a Competitive Operating Agreement - have been cut off by high-level UAW officials in Detroit. The UAW and GM had been negotiating cost cuts, such as the outsourcing of several jobs, up until Wednesday, this official said.
-By John D. Stoll, Dow Jones Newswires; 248-204-5533; john.stoll@dowjones.com
(END) Dow Jones Newswires
04-26-07 1506ET
Copyright (c) 2007 Dow Jones & Company, Inc.
In an informational flyer distributed to UAW employees in Lordstown, Ohio, and posted on UAW Local 1112's Web site, union officials told workers they had been given "news from the corporation that they have suspended two new vehicle programs for North America." Local 1112 is one of two union locals representing more than 4,000 workers in Lordstown, where GM builds smaller cars, including the Chevrolet Cobalt.
On Tuesday, Dow Jones Newswires reported GM had told the UAW that it is halting development of its so-called Delta vehicle program. Lordstown builds Delta-based cars and officials there have been negotiating a new labor agreement that would allow GM to cut labor costs at the plant in return for being awarded the next round of Delta cars, slated for production in 2009.
The flyer posted on the Local 1112 site mentions the Delta program suspension, and said that GM has "also delayed the Epsilon program which was under construction at the Fairfax, Kansas, assembly plant where they currently build the Chevy Malibu."
A GM spokesman and a spokesman for the UAW couldn't immediately be reached for comment.
While the threat to delay the Delta small car is seen as potential political posturing by GM in an effort to win UAW cooperation, delaying Epsilon production plans could hurt GM in the near term, as it aims to revive its position in the U.S. market. The Malibu, which is slated to be launched as a redesigned vehicle in the near future, is aimed at better competing with Toyota Motor Corp.'s (TM) Camry sedan.
Meantime, a UAW official at the Lordstown facility said talks on the agreement - dubbed a Competitive Operating Agreement - have been cut off by high-level UAW officials in Detroit. The UAW and GM had been negotiating cost cuts, such as the outsourcing of several jobs, up until Wednesday, this official said.
-By John D. Stoll, Dow Jones Newswires; 248-204-5533; john.stoll@dowjones.com
(END) Dow Jones Newswires
04-26-07 1506ET
Copyright (c) 2007 Dow Jones & Company, Inc.
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This has been all over our local news due to Lordstown being involved.
Many thing it is part of posturing for setting the table to deal with the union for the new product, however, rumors fly from one extreme to the other:
It's been reported that Lordstown Assembly is both the #2 target for shut-down by GM, and also that it is considered "Critical" to GM future success.
Many thing it is part of posturing for setting the table to deal with the union for the new product, however, rumors fly from one extreme to the other:
It's been reported that Lordstown Assembly is both the #2 target for shut-down by GM, and also that it is considered "Critical" to GM future success.
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Joined: Feb 2005
Posts: 32
This has been all over our local news due to Lordstown being involved.
Many thing it is part of posturing for setting the table to deal with the union for the new product, however, rumors fly from one extreme to the other:
It's been reported that Lordstown Assembly is both the #2 target for shut-down by GM, and also that it is considered "Critical" to GM future success.
Many thing it is part of posturing for setting the table to deal with the union for the new product, however, rumors fly from one extreme to the other:
It's been reported that Lordstown Assembly is both the #2 target for shut-down by GM, and also that it is considered "Critical" to GM future success.
Folks here in Wilmington made the concessions to GM to secure the Kappas.
Face it- accept their terms or lose your job. no brainer.
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From: Shelbyville, IN
Yeah, my guess is just UAW politcal posturing.
If GM delayed the malibu by any length of time I would have to say they want to go down. The new Malibu is CRUCIAL to profits at GM in the near future, IMO.
If GM delayed the malibu by any length of time I would have to say they want to go down. The new Malibu is CRUCIAL to profits at GM in the near future, IMO.
In a week it will probably be back on schedule.
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From: The Golden State
Could this be political posturing with the UAW or is something more happening here? I can't imagine why they would delay a car as crucial as the new Malibu. Can someone "in the know" chime in here?
http://www.nyse.com/interface/jsp/NH...sdowjones=true
http://www.nyse.com/interface/jsp/NH...sdowjones=true
First, it says GM is delaying development of it's Delta program. Yet, Delta has been in production since the Saturn Ion hit the streets in 2003. The Cobalt is a Delta. Being that most all financial writers lump the car industry with everything else involving sales, they don't have a knowledge of the industry that amounts to more than scratching the surface.
Second, there is no other place where GM can build the next Malibu. There's 2 plants in Europe that also build the Espilon, but neither can quickly be set up for the massive volume Malibu is going to sell within anything resembling on time. Also, when a car is approved for production, the plant where it's going to be made is decided on. There's no decision on the next Cobalt. Malibu is locked in.
Third, though the article says development on both Delta and Espilon were suspended, that's obviously not the case and is not the full story since one is already in production and the other is inevitable.
My guess?
1) I think GM is angling for concessions at the Lordstown plant for the next Cobalt. The plant has already lost a huge chunk of business when GM killed off Pontiac's Sunfire. Lordstown made 211K Cobalts and 8K G5s last year, total of 219K cars. In '99, Lordstown made 272K Cavaliers and another 90K Sunfires, 362K combined (and still had capacity for a bit more!). That means Lordstown is operating at less than 2/3s capacity right now, and extremely venerable. If GM doesn't get the concessions it wants from Lordstown, I can see it closing (something I don't favor, being from Pittsburgh). On the flip side, Wilmington made some huge concessions, and not only is it still open (at less than 25% capacity), but it's going to get additional product within the next 2 years.
2) I think there's more to the Malibu delay than any union issue. GM also delayed the Solstice due to last minute quality issues. Ford made some 11th hour and 59th minute changes to the Edge before it came out. Today, as our automakers place emphasis on flawless introductions, zero recalls, and percieved quality better than imports, on time introductions aren't as important as they once were. Malibu can't be made anywhere else, and the current Malibu is still selling very, very well.
Knowing 1st hand how the press likes to connect the dots, even if they don't connect, and knowing how few journalists outside of the car rags (and even quite a few that write for them) know very little if anything about the industry, to me, in this instance, 2 items were both cast as GM delaying 2 cars due to union negotiations. All together, I'd say there's about 33-50% of truth to the story.
Last edited by guionM; Apr 27, 2007 at 10:18 AM.
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The SS name is finally (rightfully) being restricted in where the name's shows up, so there wasn't likely to be one. But there will be a sports version, just won't be called SS (fortunately).
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K, just read on another board it is not the 2008 Malibu but the next gen Ep. II they are in reference to.
Originally Posted by Gm_Tooler
http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.html
By John D. Stoll and Jeffrey McCracken
OF DOW JONES NEWSWIRES
DETROIT ....
The auto maker in recent days has informed the UAW that it is suspending work related to two new-vehicle programs - the Epsilon mid-size car program and Delta compact-car program. Epsilon cars, such as the Chevrolet Malibu, and Delta cars, such as the Chevrolet Cobalt, are built in Fairfax and Lordstown, respectively.
UAW spokesman Roger Kerson declined to comment on the negotiations at the GM plants, saying he doesn't know the details.
GM spokesman Dan Flores said, "I can't characterize the status of discussions or the status of the activities at the plants." He said the company's forthcoming redesigned Malibu sedan will go into production this fall as planned, but declined to comment on product plans beyond that.
http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.htm
Originally Posted by Gm_Tooler
http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.html
By John D. Stoll and Jeffrey McCracken
OF DOW JONES NEWSWIRES
DETROIT ....
The auto maker in recent days has informed the UAW that it is suspending work related to two new-vehicle programs - the Epsilon mid-size car program and Delta compact-car program. Epsilon cars, such as the Chevrolet Malibu, and Delta cars, such as the Chevrolet Cobalt, are built in Fairfax and Lordstown, respectively.
UAW spokesman Roger Kerson declined to comment on the negotiations at the GM plants, saying he doesn't know the details.
GM spokesman Dan Flores said, "I can't characterize the status of discussions or the status of the activities at the plants." He said the company's forthcoming redesigned Malibu sedan will go into production this fall as planned, but declined to comment on product plans beyond that.
http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.htm
Last edited by Sholt_c33; Apr 27, 2007 at 10:44 AM.
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From: Sterling Heights, MI
Yeah, why is HHR getting the SS treatment if they are scaling back on the use of SS? "HHR SS" just sounds dumb as it is. 
Anyway, it's good to hear. I didn't think GM would be putting the new Malibu on hold for too long.
Anyway, it's good to hear. I didn't think GM would be putting the new Malibu on hold for too long.
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Posts: 1,897
From: Greenville, SC
This baby needs to get to the public! This is one of the best looking cars to come from GM in a while. I love it. I'd expect to see 200K sales within a year for this car.
Last edited by Silverado C-10; Apr 27, 2007 at 10:47 AM.