General Motors News From Ohio, Michigan Could Hurt Trump 2020 Bid

28 November, 2018, 02:43 | Author: Teresa Adams
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GM was bailed out by the American taxpayer a decade ago, with the company nationalized for a short period after the 2008 financial crisis.

"There's great disappointment that it seems like GM would rather build its electric cars in China rather than the United States", Larry Kudlow, director of the White House National Economic Council, told reporters Tuesday, just before Trump's missives.

Trump told reporters Monday afternoon he was "not happy" about the news, adding that that the U.S. "has done a lot" for GM, and that the auto giant "had better put something else" in OH, one of the states where layoffs have been announced.

The issue will be addressed in talks with the United Auto Workers union next year. "This is a cyclical, highly competitive, slow-growing business".

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"You know, they haven't closed - they're reallocating it, it's called", he continued. GM will discontinue the Cruze in the USA market by 2019.

Those five plants now build cars that won't be sold in the US after 2019, so they could close or get different vehicles to build.

Some of these funds will be redirected as "resources allocated to electric and autonomous vehicle programs will double in the next two years", according to GM, while the company will also accelerate the development of next-generation battery technology.

"The Lordstown plant is very important to Ohio". Sport utility vehicles and pickup trucks are more dominant than ever in showrooms, spurring GM to join Ford and Fiat Chrysler Automobiles NV to kill off numerous passenger cars in its lineup.

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"GM is committed to maintaining a strong manufacturing presence in the US, as evidenced by our more than $22 billion investments in USA operations since 2009", the company wrote. Barra said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust. "We think it's appropriate to do it while company is strong and the economy is strong". "Don't move, don't sell your house", Trump said as the audience cheered.

The five North American plants affected by the move are the assembly plants in Detroit-Hamtramck and Lordstown, Ohio, as well as the one on Oshawa, Ontario, and the two engine and transmission production plants in Baltimore, Maryland, and Warren, Ohio, all of which employ some 14,500 people. "General Motors' decision today. will not go unchallenged by the UAW", said Terry Dittes, the union's vice president in charge of negotiations with GM. GM emerged from bankruptcy in 2009. Five plants are also in jeopardy of closing.

That said, GM still has skin in the game. "They want to make sure they are out front".

In the fall, the Detroit automaker offered buyouts to 18,000 white collar workers, but it has yet to say how many accepted, or if its's close to meeting the staff reduction goals it set to better withstand leaner times.

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But that argument all but evaporated Monday when the company announced that as part of its plan to save US$6 billion by the year 2020, it was also shutting down production at four other USA plants - several of them deep in Rust Belt states that helped elevate Trump to the presidency in 2016. The brand will discontinue the Chevrolet Cruze, Impala, Volt, Cadillac CT6, Buick LaCrosse and will instead focus on their SUVs and trucks. They make a auto called Chevy Cruze.



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