PHILADELPHIA — Police say a Philadelphia man is charged with murder after allegedly shooting a neighbor in a dispute over dog waste.WASHINGTON – The decisions about which GM car and truck plants to close will be based on productivity and performance, not politics, the company’s new president assured lawmakers in a closed-door meeting on Capitol Hill this week.
Fritz Henderson also said GM won’t stop making Silverado and Sierra pickup trucks, which are produced in four plants, including Allen County’s.
Rep. Mark Souder, R-3rd, said those comments, taken together, are potentially good news for the Allen County plant and the 2,600 workers who are three days into an 11-week layoff.
Souder said Henderson made no promises when he met with members of Congress on Tuesday afternoon. But Souder said he left the meeting thinking that Henderson “sounds like a guy who knows if GM is going to survive, it needs to change the business model. … He’s basically pulling back to be a smaller, more effective car company.”
GM last week announced the outline of a plan that calls for 16 plants to be closed and 20,000 U.S. workers to be fired. GM, which lost about $70 billion over the past two years, is operating on $15.4 billion in federal loans and faces a June 1 deadline to restructure its debt or face bankruptcy.
The plants to be closed have not been identified, and the United Auto Workers union raised objections to the restructuring plan, saying in letters to Congress and the White House that the plan depends on increased foreign manufacturing over U.S.-made vehicles.
GM and the union are scheduled to resume negotiations today.
Souder said he was heartened by Henderson’s comments because Henderson said Silverados and Sierras will be kept in the GM line; the Allen County plant makes the basic version of each, rather than the “faddish,” fancier styles; and Henderson batted down rumors that the UAW and the Michigan congressional delegation are pressuring GM to keep truck plants in states where parts suppliers are unionized.
But Souder said despite taking some comfort in Henderson’s approach, he recognizes that not all companies that supply the automotive industry will still be in business a few years from now.
“There will be black-and-white winners and losers,” Souder said, particularly among parts manufacturers and dealers. “They’re going to shrink dramatically, so everybody better be prepared.”
Souder said Henderson also said dealerships will be closed based on sales. For instance, he said, 400 dealerships sell fewer than 30 vehicles a month. About 1,200 sell only half of what their contract with GM calls for them to sell.
During the meeting, Souder said, Henderson was asked whether dealership closures will be based on factors such as whether they are family-owned or operated by veterans or minorities.
Souder said Henderson replied: “No. We don’t have that luxury.”
Souder said he agrees with Henderson’s assessment that at least one U.S. automaker needs to survive, or all production will move overseas. Souder said Henderson is determined that GM will be a survivor.
Souder said he will meet with parts suppliers in Fort Wayne on Monday and in the Elkhart area Tuesday. Locations and times of the meetings have not been announced.
