This Blows! And I suppose that Carty will blame someone else. Toledo just got bent over and screwed. Not to worry though, just like a "john", we paid for it and will continue to pay for it for decades to come.
http://wannabemayor.blogspot.com/2007/10/chrysler-plans-to-cut-3rd-shift...
Chrysler Cuts 3rd Shift at Toledo North
By Chad Quigley - Posted on October 31st, 2007
Tagged:
Chrysler is making adjustments to the business level and this is not really new in the industry.
Now, if Chrysler was going belly up, well then we might have cause for concern.
But then when most of ones eggs are in a basket has holes in it, what does one expect.
http://toledoohioneighborhoodconcerns.com/blog
Are essentially reniging on a deal that the company made with the city for all the effort the city put in and the tax incentives program was ment to retain jobs. It has always fallen short, but this wipes out a lot of lives.
Carty and the "Keep Jeep" movement set out to hold and build jobs, not take a staggering reduction.
So do we now get to go retro on taxes and remove the abatments? Not likely.
And this is one of the amazing parts about deals like this.
All are based on expectations and when the business world changes before the abatements are over, well we all loose.
"Carty and the "Keep Jeep" movement set out to hold and build jobs, not take a staggering reduction."
I remember it well and also remember that the auto industry was in decline then as well as now.
The Mayor took his chances, and ours also, and it looks we had the loosing hand.
Next up, watch as he revitalizes Southwyck!
http://toledoohioneighborhoodconcerns.com/blog
Toledo did the best with the cards they had dealt at the time. The business world is full of risk. Carty went for base retention at the time. I don't really think he had a choice at the time, call it "meets competition".
Other than that, Carty sucks on a strategic long-term plan to identify, measure, attract, build relationships, define a value prop, communicate, and close on new, incremental Russell or Global growth companies of interest to anchor future growth. Very similiar to building a championship sports team by leading change through a guiding coalition.
Toledo needs to define the type of business it wants to attract, make that the goal with a very limited scope, then define the leading indicators that would influence the ability to achieve that specific goal, and then create a weekly and monthly scoreboard on achieved leading indicators.
The problem with Toledo is that it focuses on the scoreboard of jobs created (lagging indicator) and not the strategic, team-oriented, global string of plays needed to advance the ball down the field to continously deliver new points to the score (leading indicators).
In football leading indicators to measure and focus on would be to limit turn overs, convert 3rd downs, time on offensive clock, limit penalties, have over 100 yards rushing. Focus on these fundamentals, measure them, continously improve them, have team members hold each other accountable, and in the end it means winning football games. Focus on defined leading indicators to desired succuess...It's not rocket science.
As a side note: How much networking has Toledo done on specific industries it wants to attract? Does the community know what it's value proposition is? Are local business leaders properly incentivized to leverage their suppliers or vendors to locate in Toledo? Who knows?
Did The administration do the very best? Seems to me there was NO forsight to the 1, 4, 8, 20 year potentials. But they sure as hell bet the farm, which by the way, we just lost the barn..
Advanced risk management 101..Know the enemy. In this case the enemy is the eveolution of the auto industry. Having as Webb puts it, "Highly skilled workforce" doesn't mean a thing if the skills are in a regionally dying industry. Any deal I would have made with Chrysler would have included a mandate to provide ongoing education to the workforce to offset any damage as a result of the Auto industry continuing to falter. In 4 years..they could have all had a degree in something else.
950 people are going to lose their jobs. even with a conservitive estimate of 3 supported per job, that's 2850 people w/o income in January in Toledo. Considering this is "Breederville", that number is most likely, much, much higher.
Exactly NC... The Mayor and his team did a foolish thing. They chased people out of their homes to the point of National embarassment, the made deal after deal to move and build the new plant, they bought into save the day and let the life go to hell. The writing was on the wall and now we pay for our foolishness in spades.
It's reported as 750 jobs. so under that.. 750 x 3 = 2250. spliting hairs of course, but the details matter.
Advanced Risk Management got outbid by Michigan who was competing for Chrysler's business at the time. Remember a little over 5 years ago Daimler bought Chrysler so there was new leadership on board to make wholesale changes.
If you had inserted your risk terms at that time, Toledo would have lost all those jobs to MI. In short, Chrysler got better terms because there were more than one serious bidder at the time interested in a company with new leaders.
Meets Competition can get ugly sometimes - how much do you overspend when trying to buy a hot item on Ebay? Do you tell your wife how much you ended up paying?
Building ongoing education would be a co-op between the company, unions, the local & state gov., along with the regional education outlets (colleges). There's countless online education formats, and the co-op would split the cost(s).
It's in all parties interests to secure the futures of the workforce. A company can endow a college to build or expand their facilities(tax write off), trading a substantial break on education costs for the employees. The balance of the program costs divided between the other entities along with the workers themselves. Everyone must invest in the future or everyone will fail.
chad, I think Daimler already has a program in place (and has had for a long time) to help employees get degrees - whether they choose to partake of that, is up to the employees. I'm not sure how much Daimler helps financially anymore - used to be quite a bit I think. I"m pretty sure that they UAW also still has job skills programs in place, for free or small fees. At any rate, Daimler miscalculated what brand (or how many) car models would sell - OR, because the economy is in such a slump (foreclosure & bankrupsy rates), people just aren't out buying a new car right now, and Daimler has to cut back where it can - why keep pumping out a model of car when people aren't buying cars? I don't see this as an omen of doom for Chrysler - it's probably temporary. What I don't understand, is how nobody seems to connect the dots between job loss from smoking bans & the fact that people arent buying new cars.
the contract from a cpl weeks ago did not include "Toledo North"
"The problem with Toledo is that it focuses on the scoreboard of jobs created (lagging indicator) and not the strategic, team-oriented, global string of plays needed to advance the ball down the field to continously deliver new points to the score (leading indicators)."
Wonderful.
Now, that having been stated we cannot help but wonder what the new thinking outside of the box will be?
Solar seems to be a possibility.
But yet some still cling to traditional industries like manufacturing.
Can we depend on help from our county with the current finger pointing going on?
Noted on other posts that two of the three commimishes seem befuddled and confused.
http://toledoohioneighborhoodconcerns.com/blog
Didn't they just ratify a contract within the last few weeks? What a coincidence! And , of course, the union knew of these cuts before the vote was taken, I'm sure-not that it would've changed much.
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BRING THE TROOPS HOME-NOW!
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"They keep talking about drafting a constitution for Iraq.Why don't we give them ours? It was written by a lot of really smart guys, and we're not using it any more".
"SAN FRANCISCO (MarketWatch) -- Chrysler LLC's newly-crowned chief executive lived up to his cost-cutting reputation on Thursday, announcing the struggling automaker will drop four models from its lineup and shut down shifts at five plants.
"The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," Chairman and CEO Bob Nardelli said in a statement, adding that he expects "significantly lower" industry sales for the rest of the year and on into 2008.
"We have to move now to adjust the way our company looks and acts to reflect a smaller market,"
If I'm not mistaken is not part of the UAW. Strange as it sounds, they are represented by a different union.
Daimler is no longer in the picture - Chrysler has been sold to the private group Cerberus. I'm pretty convinced the UAW is practically non-existent and probably many other unions. Blame who you want, but I believe the members have been sold out by their unions.
I never heard of that. Any idea as to who it is? I'm asking anyone reading here.
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BRING THE TROOPS HOME-NOW!
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"They keep talking about drafting a constitution for Iraq.Why don't we give them ours? It was written by a lot of really smart guys, and we're not using it any more".
Should they have played hard-ball, and went on strike until they got whatever they demanded, or the company decided to move overseas? It is easy to say the union leadership "sold" out their members. Proving it is something else.
You may believe we live in a world were there are no consequences to rash actions; I don't. Management will move their operations overseas if it profitable to them. But they are prone to inertia just as many organizations are. If "waves" aren't made things will continue as they are until it becomes uncomfortable. If the unions chose to make things "uncomfortable" more quickly management will move their operations more quickly.
I would love to see some of these large firms move to countries like Burma where the property could be expropriated for the "good of the people". It might help them see that while U.S. labor may be expensive at least it is safe. Unfortunately, we taxpayers would probably see the Marines sent in to protect "big business" (while our jobs are shipped overseas).
The Chrysler Plant off Stickney was going to shut down a couple weeks ago b/c of the strike. I was working next door at the time in the Chrysler Supply Park - and our production depended on Chrysler not striking.
The UAW unit at the Jeep plant is still UAW, but their contract is not the same as the national one. They have their own contract.
Just like many other unions - individual units or locals can have a different agreement.