Will Tesla buy any of the GM plants?

[gilscales]

Just wondering if it makes sense for Tesla to make a move on any of the GM plants that will be closing in the next year or given everything they have learned is it cheaper to build from scratch?

 

[vjason]

I would think that having an existing building alone saves you cash and time, assuming it doesn't need too many improvements to get it ready.

Construction costs tend to go nowhere but up, and getting permits/studies to build takes time. Plus the GM factories are likely in desirable areas for manufacturing (for reasons both infrastructure and trained worker related).

Excluding massive subsidy offers, why spend 6-9 months just figuring out where to build when a suitable building may be available soon?

 

[TexasEV]

The problem is the locstion— UAW territory.

 

[SageBrush]

The problem is the locstion— UAW territory.

And UAW workers.

Tesla would never tolerate workers who think it is their right to be stoned and drunk at work.

 

[Matt L]

Just wondering if it makes sense for Tesla to make a move on any of the GM plants that will be closing in the next year or given everything they have learned is it cheaper to build from scratch?

UAW and Musk would never be able to coexist. You think anyone in those plants were working over Turkey day?

 

[RedModel3]

I'm a union member, and it certainly has its ups and downs. But don't forget, it was because of unions that we have 8 hour days and 5 day work weeks.

That being said, you also have to look at the laws in the states where the factories are. In Tennessee, we are a "Right to work" (for less) state. If there is no requirement to use union workers, then Tesla can hire anyone it wants.

 

[Lasttoy]

Never logistics will not work.
Must be near battery factory and calf supply chain.
UAW is another problem, unless workers sign agreement not to unionize.

 

[RedModel3]

Never logistics will not work.
Must be near battery factory and calf supply chain.
UAW is another problem, unless workers sign agreement not to unionize.

Just found out that Michigan has "right to work" laws, so there is no requirement to use UAW workers.

 

[voip-ninja]

Just wondering if it makes sense for Tesla to make a move on any of the GM plants that will be closing in the next year or given everything they have learned is it cheaper to build from scratch?

I doubt that they will since these plants are in UAW strongholds, Tesla does not want to deal with the union.

 

[dsvick]

I doubt that they will since these plants are in UAW strongholds, Tesla does not want to deal with the union.

I keep wanting to say "But, won't the workers realize it's better to have non-union job than no job at all?" Unfortunately, my mind keeps balking .... Also, the unions who are so eager to say "We're here for the workers" would probably be the first ones to kill any sort of deal that would help the workers but exclude the union.

 

[voip-ninja]

I keep wanting to say "But, won't the workers realize it's better to have non-union job than no job at all?" Unfortunately, my mind keeps balking .... Also, the unions who are so eager to say "We're here for the workers" would probably be the first ones to kill any sort of deal that would help the workers but exclude the union.

Most of the benefits that salaried employees now enjoy stem from the activities of labor unions in the early to mid 20th century. I can recognize this while simultaneously realizing that the unions have outlived their usefulness for the most part.

I was briefly in a union job in my early 20s. The union cared far more about protecting the jobs of the slackers who didn't want to do anything than they did about incentivizing employees to help the company succeed. It didn't used to be that way. It used to be that workers recognized that they needed the company as much as the company needed them and they would roll their sleeves up and bust ass to get things done... symbiotic relationship. They just wanted a fair shake.

Fun fact. At my union job, in the union handbook was a whole list of things the company had to pay for per the union contract. The company had to pay for things like hairpieces and wigs. Good times.

 

[Twiglett]

There seem to be more downsides for Tesla than upsides.
Also, two of those factories are in Michigan aren't they?
Regardless of corrupt unions they have corrupt state government to cope with, not sure why they need to go there.

 

[voip-ninja]

There seem to be more downsides for Tesla than upsides.
Also, two of those factories are in Michigan aren't they?
Regardless of corrupt unions they have corrupt state government to cope with, not sure why they need to go there.

I'm not sure how less corrupt California is... but even though UAW has little presence in CA it hasn't stopped them from being a thorn in Tesla's side, trying to organize work stoppages, etc.

 

[lotusland]

Can't imagine Tesla supporting a Trump stronghold like Ohio. Despite Musk's public statements about Trump, republicans in general are against pretty much everything Musk is working towards. Why reward bad behavior?

 

[FloridaJohn]

I doubt Tesla is in any mood to put a factory in Michigan since they do not allow Tesla to sell cars in that state.

 

[Big Dog]

the plant in Canada has the highest production cost in North America, so that is a non-starter.

The plants in MI and OH can be retooled by GM to produce trucks/SUVs, so those plants may not be on the block long term.

 

[Nocturnal]

Tesla is already building what is either the Semi or Model Y factory. I don't think they have an immediate need. Also, IIRC, the GM plants are technically only temporarily shut down (not for sale).

 

[Dan Detweiler]

Just found out that Michigan has "right to work" laws, so there is no requirement to use UAW workers.

I think it would be a public relations nightmare if they were to buy the Hamtramck factory for example and then not staff it with Hamtramck workers...or at least a lot of them. Plus, as has been stated it really doesn't make a lot of sense to have your battery manufacturing so far from your assembly plant.

Dan