ADVERTISEMENT

Sales of Janesville-built trucks continue to fall

By JIM LEUTE ( Contact )   Friday, May 2, 2008 - 8:21 a.m.
ADVERTISEMENT

JANESVILLE

For those still unsure of the effect rising fuel prices are having on the sales of General Motors’ full-size sport utility vehicles, April’s sales numbers tell the story.

GM said Thursday that a sharp sales increase in fuel-efficient cars and crossovers could not make up for soft truck demand.

GM sold a total of 257,638 light vehicles in April, down 16.2 percent from 307,554 in the same month last year. Adjusted for two additional sales days in the month, GM’s sales fell 22.7 percent.

Due to the sagging economy and rising gas prices, GM announced Monday that it will cut second-shift production at its Janesville assembly plant starting in July. The move is expected to result in the loss of at least 750 jobs.

“Consumer preference is shifting, and we’re shifting with it as evidenced by our strong car and crossover sales,” said Mark LaNeve, GM’s vice president of North America Vehicle Sales, Service and Marketing. “Throughout the industry, truck sales have been soft. We’ve been able to match the current economic slowdown with historically low total inventories, and as we look for ways to increase car and crossover production, we are improving our competitive position for the economic recovery.”

April sales of the four full-size SUVs built in Janesville continued their decline, posting a sales drop of 30 percent in comparison to those of April 2007.




reader COMMENTS
Click here to view reader comments
(34)
garyprimer
May 3, 2008 at 11:11 p.m.
Suggest removal

Do them a favor and remember the Hindenburg.

Jackson
May 3, 2008 at 11:37 a.m.
Suggest removal

GM worker should be asking Doyle, and Ryan to ask GM of the due date for the Janesville GM plant closing? Or do you believe GM has told the state there plan but to keep it hush?

tdslsmo
May 2, 2008 at 10:22 p.m.
Suggest removal

First off, if you can't spell or use somewhat correct grammar, do those with an IQ above 80 and quit blogging.

Second, GM and Janesville specifically are in trouble due to the same reason that a lot of industries across the U.S. are struggling - we are in a recession and probably won't see any significant relief until Q1 2009 at the earliest. Until the recession ends, most products whether it is cars, TV's or toasters will have lower sales because there is not a lot of incentive (extra cash) for people to spend in these uncertain times. The fact that a shift is being reduced at Janesville and three other truck plants (Arlington is not included for those not in the know) speaks more of our economy and the price of oil than it does anything else.

Granted the Big 3 are struggling and probably will this entire year, but fear not, a revival will be borne out of this chaos. You are seeing probably the best quality products that the Big 3 has ever put out that is on par with anything coming onto our shores, if not better (check the recalls over the past three years if you question the statistics - Toyota recalled more vehicles than any other maker last year). And don't get caught up in this hybrid BS. The winner will be the automaker that comes up with the first hydrogen-powered vehicle. All other technologies are stop-gaps (and money losing ones at that) until hydrogen-powered vehicles are a reality and mainstream.

coffeeman
May 2, 2008 at 10:16 p.m.
Suggest removal

Opinionsforfree: I AM an adult and I bought foreign for several reasons. First, I bought a Hyundai Santa Fe brand new in 2005. This automobile WAS built in American and the money the workers made to build this automobile stayed in the U.S. The GM products built in Mexico or Canada are made by their citizens and the money STAYS in their prospective country. Second, My Santa Fe has a larger interior than the comparible Equinox and yet it was $7000 cheaper. I received a 100,000 mile warranty that was not available on the Equinox. My gas mileage was 6 miles per gallon more for the equivalent 6 cyclinder. I love my Santa Fe and it is still running strong. Remember, Beloit did not fold under when Beloit Corporation went under. Fairbanks Morris has laid off more employees than GM. Beloit has made a great comeback and our taxes did NOT go up.

diamondback
May 2, 2008 at 10:06 p.m.
Suggest removal

progressive6- You said 35 years ago workers were making $6.50/hr ????If I did the math right that would be 1973 ?? 1973 the paid was closer to $3.70/hr and I think I may be on the high end !!! Min. wage was $1.90 in the early 70's.

Zoom
May 2, 2008 at 7:07 p.m.
Suggest removal

...and obviously you know nothing about China. Their standard of living is rising, because the U.S. just loves their cheap products. China and India are also the nextt big automobile markets.

Zoom
May 2, 2008 at 7:03 p.m.
Suggest removal

progressive6,
Has anyone in this blog "bashed" Janesville GM or it's workers? If not, then what are you talking about?

Workers earn what the market will bare. How do you propose the "bottom feaders" make more money per hour? Should they strike? How has that worked out for the GM workers? The strike by the American Axle workers has just been deflated by GM's layoffs. What is your proposal, or are you just trolling for responses?

jacin53546
May 2, 2008 at 6:40 p.m.
Suggest removal

I would like to reply to progressive6's comment.But I would like to first make it very clear I am not bashing gm workers.As far as your comments on "bottomfeeders"as you call them,everybody who makes a "bottomfeeder" wage and is happy about it,please reply that on a comment on this page so he can see how right he is. You are not better than anybody who has to accept what they can get for a wage,deals with it and doesnt whine about evry time they are hard up for money.And no that does not make them a welfare case either,they pay taxes just like every one else.

momof5
May 2, 2008 at 2:47 p.m.
Suggest removal

funkmasterflex: and even many of them still can't afford the products they build.

progressive6
May 2, 2008 at 2:08 p.m.
Suggest removal

For those of you who continue to bash the Janesville GM plant and it's workers will be in for a heck of a shock if GM closes this plant. You think your property taxes are high now wait till you have to make up what GM no longer pays. Have any of you smartelics looked into what GM pays each year in taxes? People whined what the GM worker earned per hour for decades. I remember when they were making $6.50 an hour some 35 years ago, the locals whined that it was an outrageous amount of money to pay workers. The real problem with our economy is the bottom feeders need to make more money per hour and quit accepting less. I'm not talking GM workers, but the people that think $9 or $14 an hour is good money. That might be good for a high school grad living at home with mom and dad but you sure can't buy a home raise a family buy groceries a car and pay your utilities and even think of sending your children to college. This country ain't China but some people are willing to turn it into China.

Zoom
May 2, 2008 at 11:49 a.m.
Suggest removal

GM lost "only" $812 million in North America in Q1.

http://www.thetruthaboutcars.com/gm-lose...

RoseyPots
May 2, 2008 at 10:53 a.m.
Suggest removal

Jackson.
I do believe that to only be “Partially” true. If you have a contract(s) promising your investors a certain amount of return on their investment and you don’t have profits to cover that amount, it can be listed as a loss, as you are still liable to the investors for the contract(s). Although it is still I believe, only on paper. ..Any tax attorneys out there?

Jackson
May 2, 2008 at 10:29 a.m.
Suggest removal

Wahoo that is a interest point they lost 3.3 bil. Do you remember how companies figure a loss? It is not how the common person thinks.Just a little eco 101 here for some of you. GM projects they will profits 6.3 bill the last 3 months but only profits 3 bill. They call that 3.3 bil a loss because the forecast was wrong. They never lost anything just did not make as much. But claim it as a loss on Taxes.

wahoo_35
May 2, 2008 at 9:59 a.m.
Suggest removal

Re-tool and build what? GM has more plants then it needs. With Arlington laying off its second shift, I would not be surprised that if GM does not close Janesville and move the production to Arlington.
GM just lost 3.3 billion, it just can't afford to re-tool a plant, just to keep people working. To those 750 people who are losing your job. TAKE THE BUYOUT! You have three weeks to sign up, it is your best deal.

Opinionsforfree
May 2, 2008 at 9:46 a.m.
Suggest removal

nutty. you should let the adults discuss the issues at hand here.

Jackson
May 2, 2008 at 9:35 a.m.
Suggest removal

GM has no intention of doing anything more with the Janesville plant, and you can take that to the bank. Look at the key signs that GM has shown. Your plant Manager took a laterial move to Texas. He was getting out of Dodge! The GM boys are on what we would call a 5 year plan that started 4 years ago.

RoseyPots
May 2, 2008 at 9:32 a.m.
Suggest removal

General Motors is like any business, they are in business to make money, not friends. I am sure they have looked closely at the costs associated with re-tooling to a different line of vehicles verses laying off workers and even the possibility of completely closing the Janesville plant. If any company didn’t do this, they wouldn’t be in business very long. I do a cost analysis for every project, before I ever consider moving forward in my own business. The advantage a smaller successful business has over a large corporation is that we can in many instances consider the “Human factor” in our analysis, as it generally involves less people therefore has less negative financial impact upon the decision.

diamondback
May 2, 2008 at 8:56 a.m.
Suggest removal

Last year did they have better deals on new SUV vehicles ? If the big 3 wants to sell their products maybe their should START the deals NOW and not wait for June ! When you can get $6000.00 off a pick-up vs. a SUV what would you buy ? Lets all look at the big picture !

Before you post a comment, consider this:

Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy Agreement
  • Keep it clean. Comments that are obscene, vulgar or sexually oriented will be removed. Creative spelling of such terms or implied use of such language is banned, also.
  • Don't threaten to hurt or kill anyone.
  • Be nice. No racism, sexism or any other sort of -ism that degrades another person.
  • Harassing comments. If you are the subject of a harassing comment or personal attack by another user, do not respond in-kind.  Hit the "Suggest Removal" button on offensive comments.
  • Share what you know. Give us your eyewitness accounts, background, observations and history.
  • Do not libel anyone. Libel is writing something false about someone that damages that person's reputation.
  • Ask questions. What more do you want to know about the story?
  • Stay focused. Keep on the story's topic.
  • Help us get it right. If you spot a factual error or misspelling, email newsroom@gazettextra.com or call 1-800-362-6712.
  • Remember, this is our site. We set the rules, and we reserve the right to remove any comments that we deem inappropriate.

Post Comment

Commenting requires registration.

Username:
Password: (Forgotten your password?)

Comment:

ADVERTISEMENT