The economy is doing well under Trump….well with the exception of wages and markets and housing, etc etc……but the sector is being the focus of a game being played by both sides…..
GM will close plants and lay off over 1000 workers…..
It’s a bleak day for workers at General Motors: The automaker said Monday it’s cutting about 15% of its salaried workers in the US and Canada and closing five plants. The Wall Street Journal reports that the moves could translate into the loss of about 8,000 jobs. The company plans to close three assembly plants next year—in Hamtramck, Mich.; Lordstown, Ohio; and Oshawa, Ontario—as well as two transmission plants, in Baltimore and Warren, Mich., reports the New York Times.
“We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success,” said GM Chairman and CEO Mary Barra in a statement. One big part of the shift is to put more focus on electric and hybrid vehicles, as well as SUVs and pickups, while sedans get lower priority. US auto sales set records in 2016 but have since slowed, reports the Detroit Free Press, which adds that automakers also were facing pressure over rising tariffs on steel and aluminum
After all his promises on the campaign trail trup fires back at GM…….
President Trump took to Twitter on Tuesday to express his displeasure with GM’s planned 14,000 layoffs and five plant shutterings; National Economic Council director Larry Kudlow did the same thing from the White House. In afternoon tweets, Trump issued a sort of threat, writing, “Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The US saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including … for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) – don’t think that bet is going to pay off. I am here to protect America’s Workers!”
The Atlanta Journal-Constitution reports those tweets came “moments” after Kudlow departed the White House Briefing Room, where he had said much the same thing: “We’re going to be looking at certain subsidies regarding electric cars and others.” GM Kudlow characterized the administration’s reaction as “a tremendous amount of disappointment maybe even spilling over into anger,” reports the AP. Kudlow met with Barra Monday, and on Tuesday told reporters, “The president is very cross with her and of course I transmitted that.” He added the sense was that GM “kind of turned” its back on the president in making its move. (There’s a surprise among GM’s six discontinued cars.)
Keep in mind that a 1000 auto jobs lost could cost as much as 10,000 along the supply line…..so auto jobs are not the only ones on the chopping block…..
GM record- Got $514 million from the Trump tax scam – Made $6 billion in profits – Poured $100 million into stock buybacks – Paid its CEO $22 million – Received over $600 million in gov’t contracts.
I am still waiting for all those jobs to come home….as promised in 2016.