Re: [AMC-list] kenosha amc plant to be demolished

[Frank Swygert <farna@xxxxxxxxxxx>]

You can't blame Chrysler for shutting down Kenosha. They had promised 
Kenosha (county, I think... could have been city?) that they would "keep 
it open as long as possible" (it being the Lakefront assembly plant), 
then shut it down a year later. Part of the problem was parts of the 
place had been in use since 1902. The infrastructure was deteriorating 
and the plant cost more to operate partially because it was old and 
inefficient in many areas. How would you like to heat and maybe cool 
parts of an old building? I live in an old house (circa 1940) that has 
had some energy efficient updates, and it still costs more to heat and cool!

Another reason was the UAW. The local was asked to take the standard 
Chrysler contract and refused. AMC had been locked in a contract that 
paid an average of 20 cents or so (I forget the exact number, may have 
been as low as 15 cents) an HOUR more for every employee. 2000 work 
hours a year = $400 each (2000 hours is 40 hours/week, 2 week vacation - 
50 weeks out of 52 per year). Now multiply that by about 6,000 employees 
(1985) -- $2.4 million a year.

AMC was a good car company that made some mistakes along the way -- 
mistakes that they weren't financially able to absorb. They weren't big 
enough to compete head to head with the "big three" -- that was the 
major mistake made by Abernethey, who is also wrongly vilified for 
trying. AMC was doing great at the time. In hindsight it was a bad idea, 
but in the environment at the time it must have seemed like a good one 
or the board of directors wouldn't have went along. In business (and 
even life in general!) you have to do what you think is best at the time 
with the information you have -- then find out if it was right or not 
later. Chrysler didn't kill AMC, it died a "natural" death that was 
prolonged by Jeep and Renault.

AMC had a long life for a car company, only a few have out lasted it -- 
there were once over 1800 US auto makers (1896-1930). AMC was one of the 
lucky ones to survive so long. Most of the others did by banding 
together, only they didn't exactly do it by choice! Read a history on GM...

I count GM as one maker as a whole now, the same with Ford and Chrysler. 
They put different badges on slightly different versions of the same 
car... that's not really a different "make" to me, though GM has been 
differentiating models more since Olds and Pontiac have been cut (most 
are exclusive to one brand name now, with some common components but not 
usually bodies in most cases). Never was as big a problem at Ford and 
Chrysler with just 3-4 brand names.

--
Frank Swygert
Editor - American Motors Cars Magazine
www.amc-mag.com

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