Mark Gregory

GM Oshawa Plant in Canada to Close

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7 hours ago, Joe in Canada said:

In the not to distant future barn finds will be headed for the recycle yards. The big thing will be drawer finds when someone comes across a rare  highly collectable mint in box cell phone. 

Already that way - early bag phones in mint condition worth considerable bucks.  Sigh..... )

 

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I have a cabin in Pennsylvania.  Monday was opening day of deer season.  In the cabins around me the hunters abound.  I counted 18 vehicles, of which 15 were big trucks.  It's the thing right now.  Talked to a dealer who told me that about 85% of these $50,000 trucks were leased.  

First of all - I can't imagine shelling out say $15,000 for a down-payment and then financing $35,000 for 6 to 7 years. Ouch!  Next, I can't imagine shelling out $3500 "acquisition fee" and then spending $350 a month for a payment that allows me to drive it for either 24 or 36 months, and then limit me to 10,000 to 15,000 miles.  And, when the lease is done, you start over.  (I laugh at my buddy who says:  "But it includes oil changes").  And heaven help you if you use it to carry a payload and scratch the inside of the bed - get out your wallet when you turn it in.

I just purchased a brand new 2017  left-over Jeep Trailhawk with 3 miles on it that listed for $31,700 and paid $21,900.  Even that hurt, but it was acceptable in this day and age.

Everywhere you go you hear that the "middle class" has been forgotten.  In my opinion, we have caused out own problems.  Lease or buy a new truck, buy a second family car, have a cell phone bill at $175 a month, a Spectrum cable bill at $150,  buy a home at $300,000, pay the taxes on it, of course you have no money left.  

Remember the '50s and '60s?  The cars were $2500 to $3500, the telephone bill was $18 a month and the house payment was $125. We were happy viewing Chanels 2, 4 and 7 and had no cable bill. It's all relative as income was lower, but I do think our parents restrained themselves a bit more than our generation.

We've been headed for this doom and gloom for years and years and I've said it all along that at some point the bubble bursts.  So what GM and the rest have done all of these years is simply do the balancing act of keeping costs down (outside labor) so we can continue to "somewhat" afford their vehicles.  It is a form of labor negotiations with American workers, and while it hurts, it's not all bad.  It creates global wealth, which creates demand for some of our American made products.  It's called "Laissiez Faire", or let the market take care of itself.  Certainly, there are trade problems that need to be constantly re-worked, but that too is an ongoing back and forth.

The current closings are like a pendulum - they'll come back and perhaps this might be a message to workers to go back to the table and renegotiate contracts.

Edited by AJFord54 (see edit history)
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54 minutes ago, Joe in Canada said:

Do not know % but if you run a business in Canada and you lease a truck it is 100% tax deductible.

100% deductible does not mean that it's a wonderful thing.  All that means is it is an operating expense.  Thus, if you are in a 20% tax bracket, the government picks up that 20% and you pay 80% out of your pocket.  Compare that to a tax "credit" where the government picks up the entire thing.  I've heard it for years about "tax deductible" and for some reason it seems to make everyone think it's free money.  Your gas bill is "tax deductible" along with your rent.  Are you going to turn up the heat because it's "tax deductible"?  Or perhaps tell your landlord to increase the rent?  I don't think so.  

Additionally, you can purchase a vehicle and it becomes tax deductible as well, the difference being that it is depreciated over say 7 years rather than the 3 year lease.  While it is "quicker" in terms of minimizing taxes, the end result is about the same.  

As far as the 85% of trucks being leased, I can only go by what the Dodge dealer told me.  I don't have actual numbers, but I will say that most of these guys looking at a $50,000 truck don't have a big enough pot to afford that payment.  Thus, the lease to make them "look good".  Note:  Just looked it up and one statement says truck leases are up to 68% from 62% while another article says they are about 29%.  Who knows?  I would tend to think it does depend on the dealership and their mental thinking, along with the brand you are representing.  If Dodge has a great lease plan, then they use it to the maximum.  I do know that a friend of mine went to work for Honda and complained that they had bad leasing plans in comparison to Ford, thus their dealership didn't lease much.

Edited by AJFord54 (see edit history)
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I just bought a new GMC Sierra 2500 Diesel a few months ago, my friend is the sales manager,  told me that 85% of the dealership sales are leases. The leasing company is a division of a major bank. 

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you are most likely correct 8E

 

just implying the same look is out there at a fraction of the cost. no batteries to replace. good gas mileage and dollar for dollar the Versa nailed it.

 

bought one for my son after graduating from Kings Point..... he beat the Versa to smithereens, much to my dismay. when he sold it, still ran like a top!

 

Maybe the best car Ive ever bought for the $

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13 hours ago, Restorer32 said:

I very much doubt that anywhere near 85% of $50k trucks are leased. 

 

11 hours ago, John348 said:

I just bought a new GMC Sierra 2500 Diesel a few months ago, my friend is the sales manager,  told me that 85% of the dealership sales are leases. The leasing company is a division of a major bank. 

 

85% is a pretty steep figure, but pick ups lease great. SImply put, lease monthly payment is derived from MSRP- discounts/factory incentives- RESIDUAL.

How much do 3 yr old pickups with 30-40k miles sell for at lease end? A LOT! They have a very strong residual. How are typical factory incentives on pick ups? Again, A LOT!

Leasing keeps the factory running! Lease a pick up and you have a customer again in three years, keeping the turnstyle turning...Steve

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2 hours ago, gungeey said:

 

 

85% is a pretty steep figure, but pick ups lease great. SImply put, lease monthly payment is derived from MSRP- discounts/factory incentives- RESIDUAL.

How much do 3 yr old pickups with 30-40k miles sell for at lease end? A LOT! They have a very strong residual. How are typical factory incentives on pick ups? Again, A LOT!

Leasing keeps the factory running! Lease a pick up and you have a customer again in three years, keeping the turnstyle turning...Steve

 

He is Buick GMC and Cadillac, and they do not sell many pick-ups, so that 85% I would say really applies to the SUV and car sales 

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This is getting ugly up here with GM and the union. The union had an add during the Superbowl for Canadians and Americans not to buy cars or trucks made in Mexico. What did that cost? GM closed Holden in Australia and now they get their cars from China. GM Canada will only have one car plant left running on reduced production after they sent the Equinox to Mexico. Plus one Power Train plant running also reduced. GM already sent the truck plant to Mexico from Oshawa and now the car plant is going. The wife and I already sent GM a notice of not buying any more GM vehicles if they leave as many others have.

https://globalnews.ca/news/4920702/gm-unifor-super-bowl-ad/

Edited by Joe in Canada (see edit history)
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1 hour ago, Joe in Canada said:

This is getting ugly up here with GM and the union. The union had an add during the Superbowl for Canadians and Americans not to buy cars or trucks made in Mexico. What did that cost? GM closed Holden in Australia and now they get their cars from China. GM Canada will only have one car plant left running on reduced production after they sent the Equinox to Mexico. Plus one Power Train plant running also reduced. GM already sent the truck plant to Mexico from Oshawa and now the car plant is going. The wife and I already sent GM a notice of not buying any more GM vehicles if they leave as many others have.

https://globalnews.ca/news/4920702/gm-unifor-super-bowl-ad/

 

From the link you posted the cost of the ad is unimportant because it looks like it paid off, and GM is sitting down with the union. Good Job!  As union tradesman our newspaper every year would tell us which model cars were made in the US and Canada that we should purchase. 

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All of my grandparents were born in the 19th century. My paternal grandmother was the oldest of 11 children. Every one of us here lost a relative(s) during the flu epidemic of 1918-19. A young widow with an only child born in 1915, my grandmother went to work as a seamstress. She did that for over 40 years. I remember going to ILGWU picnics with her. She never re-married.

 

My dad was raised with his aunts and uncles, one of which was younger than he was. He studied very hard, and got to go to the University of Chicago. His major was mathematics, with a minor in physics. He would have graduated Phi Beta Kappa if not for having to work two jobs. One was in the steam tunnels under the U of C. The other was another great depression job swinging a hammer in a luggage factory for 12 cents an hour. One day the boss man came and told him an official was coming and would be asking employees about their wages. Big boss man said for my dad to tell the fed that he was making 14. Now my dad, unlike myself, was real quick to catch on to things. He realized that the SOB was skimming. Told Big Boss that he would not lie to a g-man. If BBM wanted dad to say 14, he better be paid that. Big didn't like that, but knew the jig was up, and my dad got his raise. 

 

His mother kept on working, though her arthritis made this ever more painful. She retired with pension and social security to a one room with murphy bed on an airshaft open to the B-elevated chattering by at 6250 N. Winthrop. She was very happy, and enjoyed her social life with her large family, and the girls she had worked with. She was very generous, and particularly liked cooking and baking for everyone. The room got quite hot in Summer.

 

If we have time together, talking about really good automobile adventures over drinks, remind me to tell you about the time I was traveling from NYC to Seattle with a timber heiress. We spent a night at my grandmother's place, and then spent the next night at her late grandmother's place.

 

I wonder how my grandmother would have fared without ILGWU.     -   Carl 

Edited by C Carl
Finished up (see edit history)
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Now Sting is coming to Oshawa to support the union with a concert. GM left Australia now pulling out of Canada slowly with only 2 small plants left and are wedeling away at the US also. Back in 2011 GM was building 7 out of 10 cars off shore. It will be less than that now again seeing it already sent the Equinox for one to Mexico from Canada. So actually over 3/4 of GM cars are imports.

https://www.thestar.com/entertainment/2019/02/11/sting-on-why-hes-performing-for-gm-workers-in-oshawa.html?fbclid=IwAR2I5_6DMYVyYAO70FwpKwct2sDOGnDUvzVh5MiNAgvu6e3BOGvPM2r6Wmg

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