The Truth About GM’s Huge Layoffs and Why You Should Be Mad About It

The Truth About GM’s Huge Layoffs and Why You Should Be Mad About It


Rev up your engines,
today I’m going to tell you the truth about GM’s plan to layoff a bunch of workers and
to shut down a bunch of US factories, well if you remember a few years back they
got the big bailout because the said they were going bankrupt so the government gave
them a bunch of money, and oh to save American jobs and now their just leaving anyways, so
what’s the truth behind what’s really happening, now I’ve read and watched a bunch of these
reporters these experts saying, oh market forces you have to follow the market forces
blah blah blah, but here’s the truth and to understand it
you need to a little about history, now I learned to drive on a Chevy biscayne
it’s kind of like an Impala, it’s a big American car, back in the 1960’s when they made solid
cars that everyone in the world knew, hey they were good cars and they lasted a long
time, back then everyone said, oh the Japanese cars
are piles of junk what are they making, well guess what, they kept making better and
better cars as time went on from Japan, while the quality of the American cars starting
going down and down, to give you an example, the Impala used to
be a great car, in the 60’s everybody wanted an Impala they were very popular cars their
pretty well built, they could last a really long time, but not so recently the Impala
was one of the models that their going to stop making,
basically the didn’t build them all that well, I had customers with them and every single
person that owned one when they finally got rid of it said, I’ll never buy another one
of those pieces of junk I had more problems with the transmissions and the engines and
the old ones didn’t used to have very many problems,
so these experts that talk about market forces is forcing them to shut down these factories
and layoff people, that’s basically a lot of bs,
they were just making the cars poorly and they were making models that people didn’t
want like the Chevy Cruze, which not only was it a model that people didn’t really want,
it was really poorly made, I had a customer with one, he’s been through 3 automatic transmissions
that went out completely in the first 75,000 miles of driving that car, that’s just crazy,
and look at another one of their failures that their not gonna making anymore,
the Chevy Volt, hey they tried to compete with the Toyota Prius and they failed massively,
the cars were garbage compared to what Toyota was putting out, so they can talk about market
forces all they want, a lot of the problem is they were making vehicles that were either
poorly made or people didn’t want to buy them because they didn’t like the way they looked
or the way the handled, and unlike the Japanese like say a Toyota
Corolla, they started out with a basic car and they keep improving it over decades, GM
was like, oh that model didn’t work we’ll get rid of that one and try something else,
it’s much better to build something and perfect it over time than to just say, oh that didn’t
work lets try something else and see if that works,
some of their ideas are, oh we’ll go to just a bigger vehicle, SUVs and trucks that make
a lot of money, well talk about short sighted again, now just because gas is cheap they
think, oh we’ll sell these giant vehicles for a bunch of money, well guess what people,
gasoline is a limited things, the price is only going to go up and it will probably happen
relatively soon, and then all those big cars people are going to not be driving those anymore
and then they’ll be in a even bigger mess than they already are,
and as far as I’m concerned, GM’s idea of shutting down these factories down in the
US and laying off all these Americans, hey that has to do more with them making a profit
in China not the US, realize that from the last data I could find,
the Chinese produced 24.5 million cars and at that same time period the US produced 4.1
million cars, a big difference, and as for GM itself, GM sells 70% more cars
in China than they do in the US, and these cars are all made in China,
so if things continue like this, I wouldn’t be surprised that if someone in the US wants
to buy a GM car in the near future, it’s going to be made in China not in the US,
even though we taxpayers bailout GM the last time, their big thank you is, bye we’ll see
you in China, they didn’t seem to say, oh the market is
forcing them to do that when they took all that taxpayer money, you know their giving
these promises about US jobs and stuff but as soon as they see a way to make their cars
in China, sell them in China and probably import those Chinese ones over to the US,
hey those guys are basically laughing at the average American,
and it’s bad enough they were making cars that had faulty ignition switches and then
they cheated and changed the parts numbers so they think, oh people aren’t going to figure
out that we made these bad ignition switches that some people were killed in wrecks because
the cars stopped running, you know their not interested in telling the
truth about the problems that they have, but taking taxpayers dollars and then shutting
the factories down years later anyways and moving all the stuff to China, hey all I got
to say is, you can vote with your dollars, don’t buy their products, nobody is going
to force you to buy one of their products, at least not yet, hey take Toyota for example,
they make a bunch of them in the US and they have for decades, you might end up driving
a Japanese car around that’s made in the US, where if you buy a GM it’s going to be a Chinese
made car, the world is upside down on that one,
so it’s really a double edged sword when you think about why GM is laying off all these
workers and closing all these factories down, they’ve often made poorly designed and built
cars that didn’t last so their base that used to be, oh when I was a kid people would say,
oh I buy a new GM car every 3-4 years, well that base is gone and then they want to make
them cheaper so their going to move all their production to China where they can make them
cheaper, now the Chinese factories are all modernized
so they have less labor that they have to deal with, but from what I read about them,
they have really good quality, for example, buicks are like the real popular car for the
upper level management guys to ride around in a Buick in China,
kind of like it used to be in the 1950’s in the US, a little time warp there,
so basically, the real problem is greed, they want to make their cars cheaper so they can
make more profit and eventually they want to make the most profit by building their
cars somewhere else where they can make them cheaper and in the modern factories more efficiently
than in the old factories in the US, my hometown Niagara Falls had the same fate itself, when
I was young, there were factories everywhere building all kinds of stuff but they were
old factories, first they moved the factories over the Mexico, then they even moved them
further to the East because it was even cheaper there than it was in Mexico,
so if you think about it as a career, hey you probably wouldn’t want to get involved
in either building cars in the US or working for the company that builds them because you’ll
find that your job will probably vanish in the near future, so if you never want to miss
another one of my new car repair videos, remember to ring that bell!

About the Author: Michael Flood

100 Comments

  1. If you're tired of big corporations taking advantage of every day workers and taxpayers, do something about it, talk about it, because one of the reasons corporations get away with this kind of stuff is because people do or say nothing about it anymore!

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  2. I think you should distinguish between a transmission failure, or engine reliability and the car itself. Tires and batteries are thought of in and off itself and made by a separate company, Maybe transmissions and motors should be thought of this way. Just a new way of looking at things.

  3. 2009 Chevy Cobalt. Yeah, by '09 the faulty ignition switch that got some folks killed had been replaced, but they forgot to address the other "common issues with this car": 1. front suspension ('F1', bad design, parts like bushings wear out fast) 2. shift solenoids (bad design; located in transmission, but the location sucks). Not where you drop the pan, but rather on the side where the cover can only come off if you drop the subframe. AAMCO wants 1600. to 2000. to fix. 3. the "BCM (body control module) problem" 4. the "TCM (transmission control module) problem" 5. … SOLD THE ROYAL POS and bought a 2013 Honda Civic because Scotty lists it in his 5 Best Used Cars video. Truly "Made in the USA", but with Japanese engineering THAT WORKS!!

  4. Got a friend who loves his GM grand Prixs and Bonnevilles he has at least 10/12 and everyone of them are broke down they do drive nice but money pits.

  5. It is not greed. It is maximizing the shareholder value. If they can be produced cheaper in China that says alot about the cost of doing business in America.

  6. When I was growing up – there was only one car to buy – GM.
    Never owned a Ford or Chrysler.
    But times have changed. Now I am big on Toyota.
    If Mistsubishi could get their 3 Cylinder to run smoother I would maybe look at that.

  7. Scotty are you trying to tell us the management and government don’t know what they’re doing and are greedy and corrupt that just madness

  8. GM has been making crap since the 1970s. Vega on….as does tried ..pinto. but they starteded going for quality while GM took the crap junk path.

  9. Garbage Motors (GM) should have just went under permanently. They have not made a good vehicle in decades and now they did this. I guess they do not care. They got our money without us having a say.

  10. If the government did take much tax from companies, they wouldn't move out. Companies are only looking for money even if they let kids working for them. Car prices went up up and they quality went down down

  11. GM Strike in 2019 got me here!
    GM = General Maintenance! They really need to fold up or make better cars! . Really who wants a shitty car for $45k when you can get a BMW, Honda Or Toyota that can run circles around it. or less or $5k more.

  12. I never brought another gm car since the 1980s because they were putting in chevy engine's in the Cadillac and other models I will never ever own another gm junk box ever again.

  13. The Obama money that GM received was used to built factories in China. The American GM worker is now paying for that decision.

  14. Scotty..Toyota said themselves..They were boring cars 4 their looks..Stop them..Who cares if boring as long as they're reliable..Plz.don't let them b junk..Stop'em plz!!!..I luv the looks on Toyota myself..Great cars..

  15. Greetings from Lockport NY. Sad but true, all you've said is correct. I drive a 2010 Lincoln MKX. I've never had a single problem with this vehicle. Ford turned down govt money. Said no thanks and kept going. Never thought I would say this but Ford products are still made around here and around the bend in Canada at the Oakville ON plant where my vehicle was made. GM had its head up its backside. Local workers are currently on strike because their contract ended. Although I don't really care for unions much, it will be interesting to see how this all plays out.

  16. Biscaynes rock cuba…
    Still, in 2019.

    Have you seen the mess they left behind in Detroit?*

    ___________________________
    *see also: Fisher Body Works

  17. Worthless communist traitors drmocrats fighting president Trump tooth and nail instead of protecting our borders languages culture and economy.

  18. The Toyota Tundra is made in the USA with 73% of the parts that are made in the USA! Ford and Chevy? Around 60% made in USA and that was in 2011!

  19. The next big boom would come if they would resurrect rear wheel drive. Following buyers trends I note mini vans. RWD truck framed, convenient vehicles. Then they put them on car chassis, and the motors and drive lines couldn't stand the weight. They also handled poorly, so people went to SUVs A convenient, sturdy, RWD ( or AWD) vehicle on a truck chassis. Well, let no bad idea die, so we're putting them on a car chassis too.

    Follow buyers, not bottom line.

  20. To Freddy the Eliminator: That's what the 12 hour, rotating shift is designed to combat. Workers don't share days off.

  21. You close all the factories. You close all the brick and mortar stores. This shuts down all the supply chains. Not to mention the hit on local towns. Anybody else see a problem?? Anyone?

  22. Just a sideways comment from the UK: how come foreign companies have better labour relations than home-based companies? The old British Leyland factories were famous for strikes and lost production but Japanese companies inside and outside of Japan seem to involve their workforce in quality control and pride in the job. BMW make the new Mini in Oxford, UK without the management versus workers friction that ruined the British car industry. How do GM compare? I don't know but I suspect from their quality problems, as described by Scotty, derive partly from bad management of the workforce. When workers hate the boss, they sabotage the product!

  23. If GM was allowed to go bankrupt before the bailout…. They company could have reformed without a union. Then they could have run the plants like Honda, Hyundai, and Toyota… and with all the sponged money ceasing, put it back into the product and have workers with a work ethic working for them

  24. GM has (since the 70's) made undeveloped cars. They skimp on development costs, use inferior components to save money. The cars are generally a failure. They make changes over the next few years and eventually have a fairly good car. Problem is that by then the car has such a terrible reputation that no one will buy the good car they then make. They discontinue the model and start the process over again by introducing a new model.

  25. My gran from Johannesburg my mom say about table top mountain. That's how i like the technology in things i use and need. Things made better on the way up. Worse and worse after they perfect it,planned obsolescence corporate greed and all that. The longer it takes for commercial enterprise to realize or agree that they have perfected the technology, the more people can picnic on the mountain top. Crazy metaphor, i know 😫

  26. GM is controlled by the Unions . In fact the UAW owns about half of all GM stock directly . In addition there are individual union members that also own GM stock. Each shareholder gets one vote per share to say how the company is run and thus the UAW chooses the board of directors. If the company isn’t run welll then the UAW can only blame itself .

  27. Owned a 2010 Chevrolet Cobalt and the head gasket blew at 98000 miles. Airbag problems, needed new struts and tire rod at 50000 miles(May I mind you I take really good care of my cars) bought two Corolla since then and haven’t had a single problem.

  28. You are amazingly correct in your analysis of  vehicle manufactures in the US Scotty no wonder the GM employees are striking today.

  29. I already buy American made Toyota, Honda because they treat me like a customer. They last forever. Putin owns the anti American uaw that oblama/taxpayers gave 16 billion dollars to. The oblama/Putin uranium deal sold the uaw to Putin.

  30. GM's arrogance towards its customers is its problem along with making defective cars. ..I've owned 4 cars in my life and I'm 58
    A used 69 Pontiac Lemans, A Brand new 85 Chevy Camaro, a used 2000 Dodge Intrepid and a brand new 2013 Toyota Camry..
    By far the worst car was the 85 Camaro…Nothing but trouble, 3 transmissions, 5 alternators, 5 fuel pumps, 5 Exhaust systems, and about 50 mass airflow sensors…I stayed with it for 19 years but it was a lemon from the get-go…Within 1 year of purchase the underside of the hood began rusting like crazy near the headlights…GM'S local dealership said. "WHAT DID YOU EXPECT???"…I SAID ..I EXPECT YOU TO REPLACE THE HOOD, TO WHICH THEY SAID "YOU NEED TO READ YOUR WARRANTY"
    WARRANTY STATED THAT THE RUST MUST COMPLETELY RUST THROUGH BOTH SIDES OF THE PANEL OR ITS NOT COVERED….THIS DESPITE THE FACT THAT I ALSO PURCHASED LIFETIME RUSTPROOFING PROTECTION. THEY SAID THAT DOESN'T KICK IN UNTIL YOUR MANUFACTURERS WARRANTY EXPIRES…IT WAS THEN I TOLD THEM I
    NEVER EVER WOULD I BUY A GM PRODUCT AGAIN…
    AS BAD AS THE VEHICLE WAS THAT REALLY WASN'T THE MAIN ISSUE…..THE ISSUE TO ME WAS THEIR COMPLETE CARELESS INDIFFERENT ATTITUDE TOWARDS ME THROUGHOUT THE ENTIRE MANUFACTURERS WARRANTY PERIOD….NEVER EVER ….NEVER EVER AGAIN

  31. You seem very delusional and confused, the fact of the matter is GM and Ford aren’t making cars anymore because They can’t meet café standards that the Obama administration Implemented. Trucks don’t have to meet these corporate average fuel regulations therefore everything will be a crossover or a small utility vehicle. GM is being forced by the government to drop cars the same as Ford. Not to mention people don’t buy sedans the way they purchase trucks. Ford sold nearly 800,000 F150s pick up Trucks last year. The best selling Toyota sedan doesn’t sell more than 300,000. China doesn’t have these regulations and they’re pushing for electric cars anyway. Their market will be so huge if they want electric cars that’s what will be built worldwide. China will drive the market. It will be built where the biggest market will be, China. You also ignore the fact that many young people in this country don’t even care if they get a license they’re looking for self driving cars or public transportation. Very likely car ownership will look completely different in 10 years or 20 years. We will have cars that are self driving and possible you will just purchase a service where a self driving cars shows up when you want it to.
    The Love affair with the automobile that we knew is sadly coming to an end. This has much more to do with what’s going on then your hate speech about how corporations run things. I’m not thrilled about what I have written . I still love driving manual transmissions in automobiles, but it is rapidly becoming a thing of the past.

  32. iirc, gm screwed themselves by agreeing to the demands of the uaw. Imagine having to pay for retirees not working along with their health insurance. The only way they could pay for that was to cut costs and increase the price of their cars.

  33. Well, I'm sure all those GM Union workers voted Democrat, so they are going to be getting what they have been asking for when their jobs leave .

  34. Toyota says how can we make it better. General motor says how can we make a buck. Like the saying goes. If You Build a Better Mousetrap the World Will Beat a Path to Your Door.

  35. Let's not forget the airbags failing to deploy cover up. Mary Barra has a lot of blood on her hands to explain herself about

  36. All I buy is Toyota anymore, I have a 18 4 runner limited (made in Japan),and a 14 Camry, US made.I still have a 2000 GMC Silverado but that will be the last. After the bailout I can’t bring myself to buy a GM.All I hear is horror stories. I’ve had absolutely 0 minutes problem from either Toyota I own.

  37. American workers cost more and make poor quality cars, so go figure. Owners are in for the money, so we need to work harder. Too late, they will not even give us a chance now. So keep striking and freeloading when you still can, losers.

  38. Is hard not to like the japanese auto makers when they are employing thousands and thousands of americans,and the american makers act like we OWE them our allegiance,and put out crap.

  39. Hey umm Scotty is wrong about GM, GM is the most reliable car company in the world and i’m definitely not paid by GM to say this 😂

  40. "The Old ones" 50's 60's were DONE, at $100,000. miles. My Chevy VOLT is the greatest car ever made by man. The REAL problem is the Stupid, Lazy, Jaded, American Worker.

  41. i have to say that gm vehicles have treated me better than my friends vokswagon or bmw's treated them. at half the price. actually less than half because i restore junked FWD carlo's and trailblazers

  42. Buick is the #1 seller in China and has been for years. Having said that auto sales in China have been contracting.

  43. My Dad drove a '66 Chevy Impala with the 283 V-8 for about 10 years without any major problems. It was literally the best car he ever owned, it was reliable, comfortable and even got decent fuel mileage. It had plastichrome flashing all over the interior that eventually started to peel away but the car itself held up just fine.

  44. Only politicians that don't comprehend economics believe that a dying car company will kill jobs in the long run. Do you know how many people would KILL to bail out GM in the private sector? The good thing about private-sector bailout loans is that the company using the loan has to make better products, because if they don't… THEY DEFAULT AND DIE. Not only do you have to pay for the loan amount, but you have to pay for INTEREST as well, which incentivises more efficient business, AND it increases jobs in the finance industry, AND you're not drawing from the bottomless pit of Big Government's $21T debt. Assuming the interest rate properly reflects GM's credit rating, what is the problem with letting an investment bank like Goldman Sachs lending money to bail them out?

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