Article published Jun 8, 2005
GM's future in Shreveport may depend on new vehicle
The Associated Press
General Motors Corp.'s future in Shreveport could depend upon how well - and for how long - consumers respond to its new Hummer H3, a union official says.
The automaker announced plans Tuesday to close plants and cut 25,000 jobs as it shrinks its North American operations, the largest and most troubled part of its business.
In Shreveport, GM employs 3,000 hourly employees. In mid-May, its latest product, the H3 was released to the market.
"I think we're a key plant in the GM Corporation because we have a hot vehicle right now, and they have great expectations for the H3, and we just started building it," said David Kitterlin, president of UAW Local 2166. "A year from now, will that be the case? I don't know. It depends on whether the sales for the H3 will hold up. Nobody knows that."
GM has been hurt in recent years by lackluster sales of its highly profitable trucks and sport utility vehicles and market share loss to Asian rivals. GM hopes to sell 20,000 to 30,000 H3s by the end of the year.
Larry Vansell, a stock handler at the Shreveport plant, said he is accustomed to moving when plants close. Shreveport is his fourth stop as a GM employee.
"I've been through this so many times, it doesn't bother me anymore," said Vansell, 56. "I've been working here since 1969 and it's the best part-time job I've ever had. I'm still trying to get my 30 years in."
Loyd Haggermaker, who transferred to Shreveport 15 months ago after a GM plant shutdown in Athens, Ala., said he has faith in the H3s potential. He works on the final assembly line for the vehicle.
"We're building the Hummer now. And it's supposed to be the thing of the century," Haggermaker said. "We've got a lot of temporary employees right now. And workers are afraid when they're gone there will be a layoff, but I don't see a layoff in the future, not here."
GM's job cuts would be on top of earlier reductions that pared GM's domestic work force from 177,000 hourly and salaried employees at the end of 2000 to 150,000 at the end of last year. The company also wants relief from its $5 billion annual health bill - which the company says adds $1,500 to the price of each vehicle - for 1.1 million workers and their families.
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