Union clings to GM plant in area where Trump promised jobs
28 November, 2018, 03:28 | Author: Kristi Dunn
United States president Donald Trump blasted General Motors (GM) for making plans to close seven production plants, including four in the USA, and demanded that the firm find a vehicle that sells in sufficient quantities to be able to increase the company's activities in OH, a key U.S. election battleground.
Trump went on threaten to cut all GM subsidies - including those for electric vehicles.
"Today our generation is facing a new Black Monday in the Mahoning Valley", Congressman Ryan said, "GM's announcement is devastating for the men and women working at Lordstown and everyone here in the Mahoning Valley".
GM's moves to restructure the company mark one of the most aggressive move yet by a big automaker to transition from making cars powered by internal combustion to ones built around software and electrically charged batteries. In 2009, for instance, GM announced that it meant to close a huge assembly plant in Orion Township, Michigan, north of Detroit.
As recently as 2012, passenger cars made up more than 50 percent of all USA new vehicle sales. These would most likely affect three assembly plants in Detroit, Ohio and Ontario as well as two factories in MI and Maryland that build transmissions and batteries. Also at risk are two transmission plants, one outside Detroit and another in Baltimore.
GM announced it would cut six gas-powered auto models as part of a plan to close factories and cut costs so it can spend more on electric and autonomous vehicle development.
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The plant in Lordstown, Ohio, that makes the Chevrolet Cruze compact auto is on the possible closure list. The company is also halting production or sale of other models, including the compact Chevrolet Cruze, the full-sized Chevy Impala and certain Cadillacs. "It's nothing exclusive to GM", said Jeremy Acevedo, manager of industry analysis at Edmunds.
They also cast a pall over this week's signing of the U.S. -Mexico-Canada Agreement, the hard-won successor to NAFTA that Larry Kudlow, the director of the National Economic Council, acknowledged Tuesday was created to foster the growth of the auto sector. Ford, whose third-quarter sales in China dropped 43 percent from a year ago, estimated that the tariffs would cost the company at least $1 billion in lost profits by the end of 2019.
Trump also said that the tariffs, which GM warned would "undermine [its] competitiveness against foreign auto producers.", have "nothing to do" with the layoffs.
The White House is expressing "great disappointment" in General Motors after the automobile giant announced it would be cutting thousands of jobs.
General Motors has confirmed five factory closures, signalling the end for six of its increasingly unpopular models - and as many as 14,000 jobs. Kudlow says it felt as though GM "kind of turned" its back on President Donald Trump by closing the plants in the Midwest. However, after an automaker sells 200,000 electric vehicles, that manufacturer gets phased out of the program over the course of about a year.
Overall GM said the shake-up would lead to cost savings of around £4.7 billion by 2020.
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