Chevy To Halt Vette Production

[Jamie F.]

Sign of the times?
It's been more than a decade since the "recession-proof" Chevrolet Corvette had to endure a production cut due to excess dealer inventory, but that's apparently the case once again. Citing slow sales related to the ongoing automotive recession, GM will turn off the Corvette's factory lights during the week of October 6th. When Vette assembly resumes the following week, production will be scaled back to 15 cars per hour (normal speed is 18.5 cars per hour). Unfortunately, GM says layoffs will accompany the new schedule at the Bowling Green facility, with up to 75 workers losing their jobs. While surprising, the news isn't entirely unexpected. Corvette sales were down 8.5 percent for the year through August of 2008.

[Ridge K.]

Re: Chevy To Halt Vette Production

Very sad news indeed, but.....she will survive again, just like she's done for seven decades.
Very sorry for those assembly line workers. I've been told by insiders, that the Corvette workers are some of the very best on the face of the earth.

[Mike M.]

Re: Chevy To Halt Vette Production

WOW!
75 employees may not sound like much, but, that must be a rather significant number. I don't remember even seeing 75 people on any of my tours.
How many total people does the plant employ?
Maybe this really is a buyer's market.
HaND

[Terry M.]

Re: Chevy To Halt Vette Production

I think there are 400+ workers at BG Assembly, but that includes management and hourly -- IIRC.

This really drives home why they thank those who come through on the buyers tour for buying a Corvette.

[Jamie F.]

Re: Chevy To Halt Vette Production

Make sense, reducing production by almost 19%, and laying off 19% of the workforce.
Usually it is something like layoff 25% of the workforce and only reduce production by 10% or something.

[Louie M.]

Re: Chevy To Halt Vette Production

I'm surprised sales are down only 8.5%, considering the economic wreckage these days. I think Chevy should advertise more about the great fuel economy these cars get on the road, to garner a few sales.

[Alan S.]

Re: Chevy To Halt Vette Production

I'm surprised! Terry's number of 400+ plus employees is LESS than I would have thought worked at BG. As a frame of reference... the VERY large Wegmans grocery store in Hunt Valley, Maryland has 600 employees, with about 240 employees in the store at one time on a busy day.
From the raves that the new cars get on this Board, I'd say the workers at BG take a whole lot more pride in what thy do.
Regards,
Alan

[Stuart F.]

Re: Chevy To Halt Vette Production

Just returned from a meeting for GM retirees regarding our loss of Health Benefits on January 1, 2009. We understand and empathize with the Corporation and the current market conditions, but what sticks in our craw some is the fact that they are going to pay us our $300 additional pension allowance to cover our lost coverage out of the Pension fund, which makes it taxible. They say that was the only place they could get the funds to match what Chrysler (01/06) and Ford (01/07) did. Both C and F use a HRA account process (don't recall what that stands for) which is non-taxible. So even though it looks like the annual totals for all GM, Chrysler and FoMoCo are the same, they are not. Then the worst part comes when they tell us the Pension Fund is over Funded now, so they are going to use it also to pay out up to 6 months severence to current employees who opt for a buyout. Then they said if we didn't like these provisions, WE should lobby our Representatives to get the Feds to legislate some special considerations on our behalf.

Some folks were a little upset and stated they had bought their last GM car (incl. Corvettes), specially now that their neighbors get an GM employee discount as well! All in all, the Coffee was good and the bottled water refreshing. The GM reps just managed to hold this at one of our super resort Hotels here in Orlando that have convention facilities, and they get to stay in $200./night rooms. Some people among our spoiled lot even grumbled about that.

Stu fox

[Ken A.]

Re: Chevy To Halt Vette Production

The Bowling Green plant also builds the small Cadillac, CTS or whatever it's called. I'm sure that some, if not more of those laid off are from the Cadillac line.

Ken

[Wayne W.]

Re: Chevy To Halt Vette Production

Maybe if the made them look like this, they would sell more.

http://www.corvettesconquercancer.com/97strayr.jpg

[Jim W.]

Re: Chevy To Halt Vette Production

Maybe if the made them look like this, they would sell more.

http://www.corvettesconquercancer.com/97strayr.jpg

I agree.

[Jim B.]

Re: Chevy To Halt Vette Production

Doesn't something sound funny about this when Dealers are asking huge markups for the new ZR1?? When they shut down, ZR1 production stops as well.

They have delayed the Camaro and the VOLT (Which I would love to see sooner, I saw it at the Detroit show and it sure looked good.) will not be available until 2011.

I have to say that Chevy's business plan is not clear to me.

[Mike M.]

Re: Chevy To Halt Vette Production

GM has a plan???
HaND

[Rob M.]

Re: Chevy To Halt Vette Production

I don't understand, they can't deliver enough ZR1 in time so they sell well over the sticker price and the slow down production? Can someone explain???

greetings,
Rob

[Duke W.]

Re: Chevy To Halt Vette Production

Just returned from a meeting for GM retirees regarding our loss of Health Benefits on January 1, 2009. We understand and empathize with the Corporation and the current market conditions, but what sticks in our craw some is the fact that they are going to pay us our $300 additional pension allowance to cover our lost coverage out of the Pension fund, which makes it taxible. They say that was the only place they could get the funds to match what Chrysler (01/06) and Ford (01/07) did. Both C and F use a HRA account process (don't recall what that stands for) which is non-taxible. So even though it looks like the annual totals for all GM, Chrysler and FoMoCo are the same, they are not. Then the worst part comes when they tell us the Pension Fund is over Funded now, so they are going to use it also to pay out up to 6 months severence to current employees who opt for a buyout. Then they said if we didn't like these provisions, WE should lobby our Representatives to get the Feds to legislate some special considerations on our behalf.

Some folks were a little upset and stated they had bought their last GM car (incl. Corvettes), specially now that their neighbors get an GM employee discount as well! All in all, the Coffee was good and the bottled water refreshing. The GM reps just managed to hold this at one of our super resort Hotels here in Orlando that have convention facilities, and they get to stay in $200./night rooms. Some people among our spoiled lot even grumbled about that.

Stu fox

A buddy of mine's brother is a retired Delta pilot. I don't know what his annual pension was, but my guess is around $100K.

When Delta filed bankruptcy, they stopped paying pensions. The federal pension guarantee fund made reduced payments for a few months and then stopped, and Delta retirees will never receive another dime.

You better hope that GM doesn't file bankruptcy, or it will be all over for the retirees.

Duke