Unfortunate News
This November, General Motors announced plans to close its three assembly plants in Oshawa, Ontario; Detroit, Michigan; and Warren, Ohio. Domestic car companies are orienting their production away from traditional hatchbacks and sedans in favor of trucks and SUVs. As a consequence of key industry changes, the public should expect some facilities to close. Despite GM idling these plants, there are still companies making cars in North America.
A Glimmer of Hope
Earlier this month, Tesla’s Elon Musk indicated interest in the GM factories on CBS’s 60 minutes. This wouldn’t be the first time that Tesla considered operating in old GM space; their current assembly plant in Fremont, California used to belong to General Motors. However, the question remains: How much of what Musk says will actually come true?
Not Your Average Car Company
Tesla is an innovative car company experiencing significant growth. However, it seems unlikely that they will be able to ramp up production in the near future, especially to a level that would warrant repurposing multiple GM plants. Tesla currently operates out of the Bay Area, which has a readily available and appropriate labor pool to fit their high-tech needs. The same cannot necessarily be said about the Rustbelt.
A Far Stretch
It’s not that GM workers can’t be retrained to fit Tesla’s needs, but the electric car company has to make a decision in the very near future to be taken seriously by anyone (especially current GM employees). Tesla does things differently from other car companies and Musk regularly says things that shock the automotive industry and financial markets. At the end of the day, no one wants to see North American auto workers out of a job, but it’s a far stretch to say these plants will be producing Teslas anytime soon.