The Trump Economy: GM To Slash Over 14,000 Jobs in North America

[Straight Shooter]

General Motors said Monday that it planned to idle five factories in North America and cut more than 14,000 blue-collar and salaried jobs in a bid to trim costs.

The action follows similar job-cutting moves by Ford Motor in the face of slowing sales and a shift in consumer tastes, driven in part by low gasoline prices.

The five G.M. plants will halt production next year, resulting in the layoff of 3,300 production workers in the United States and about 3,000 in Canada. The company also aims to trim its salaried staff by 8,000.

“We are taking this action now while the company and the economy are strong to keep ahead of changing market conditions,” Mary T. Barra, G.M.’s chief executive, said in a conference call.

The plants include three car factories: one in Lordstown, Ohio, that makes the Chevrolet Cruze compact; the Detroit-Hamtramck plant, where the Chevrolet Volt, Buick LaCrosse and Cadillac CT6 are produced; and a plant in Oshawa, Ontario, which primarily makes the Chevrolet Impala. In addition, the company will halt operations at transmission plants in the Baltimore area and in Warren, Mich.

Some of the affected plants could resume production, depending on the outcome of contract negotiations with the United Auto Workers union next year.

Word of the cutbacks in Canada had surfaced over the weekend. Within an hour of G.M.’s announcement, workers walked out of the Oshawa plant into a driving rain. Waving red flags and clad in ponchos bearing the logo of their union, Unifor, they began blockading truck entrances.

Prime Minister Justin Trudeau said he had expressed his “deep disappointment” about the closing to Ms. Barra. He added that the government is looking at measures to help jobless G.M. workers “get back on their feet.”

The cuts also drew political fire in the United States, where President Trump vowed early in his term to increase automaking jobs and brought pressure on the industry not to shift work to Mexico and overseas. Senator Rob Portman, Republican of Ohio, said, “I am deeply frustrated with General Motors’ decision to shut down its Lordstown plant and disappointed with how the hardworking employees there have been treated throughout this process.”

The United Auto Workers said G.M.’s move “will not go unchallenged.” Closing American plants while expanding production in China and Mexico is “profoundly damaging to our American work force,” said the union vice president in charge of negotiations with G.M., Terry Dittes.

But investors welcomed the news, sending the company’s shares up about 5 percent to their highest level since July.

For the last several years, as gas prices have remained low, consumers have gravitated toward bigger, roomier vehicles like pickup trucks and sport-utility vehicles. Demand for small and midsize cars has plunged. Earlier this year, Ford said it would stop making sedans for the North American market and announced cuts in its work force.

The companies have also paid a price for the tariff battle that Mr. Trump set in motion. In June G.M. slashed its profit outlook for the year because tariffs on steel were driving up its costs. The company does not import a great deal of steel into the United States, but the increased demand for domestic steel has raised prices.

Ms. Barra said G.M. would set aside up to $2 billion in cash to pay for the job reductions, and take noncash charges against its pretax earnings of about $1.8 billion. The charges will affect earnings in the fourth quarter of 2018 and the first quarter of 2019.

Until last month, G.M. had been offering severance packages to entice salaried employees in North America to leave the company. In January, the company plans to cut additional white-collar jobs on an involuntary basis. Between the two actions, it aims to eliminate 8,000 salaried jobs, or about 15 percent of its white-collar workers in North America.

The U.A.W. is preparing to negotiate new contracts with G.M., Ford and Fiat Chrysler next year. In recent years, the union has agreed to concessions in exchange for promises by the manufacturers to keep plants open.

https://www.nytimes.com/2018/11/26/business/general-motors-cutbacks.html

 

[Jack Davenport]

Who gives a fuck about Canadian workers?
That’s where most of the layoffs will be. And how are layoffs in Canada Trump economy related?
We all may be full of shit but it’s coming out of your eyeballs.

 

[georges]

Some of GM's cars were not great sellers and also the competition because of japanese brands and german brands having their plants in the US is also a part of the reason why non profitable plants have to close. So stop blaming in it on Trump. The car market is a highly competitive one, Plymouth, Oldsmobile, Mercury and Pontiac went bankrupt and closed all their plants a while back because they weren't profitable. The golden era of American made cars ran from 1957 till 1972 for those in the know.

 

[Straight Shooter]

This is a good move on GM's part. It simply had to be done. It's unfortunate that some jobs will be lost but people need to understand that you do not have a right to a job. Though Americans think they are entitled to one. You will not meet a more entitled group of people than Americans. It's not even close. What exactly would you have GM do? Keep the factories open even if it means they'll continue to lose $? Sure it would be nice for them to do that but that's just not how things work here. Here in America we believe in the free market. And the market told GM that this decision had to be made. If you want a guarantee to a job I suggest you become a socialist.

 

[meesterperfect]

Some of GM's cars were not great sellers and also the competition because of japanese brands and german brands having their plants in the US is also a part of the reason why non profitable plants have to close. So stop blaming in it on Trump. The car market is a highly competitive one, Plymouth, Oldsmobile, Mercury and Pontiac went bankrupt and closed all their plants a while back because they weren't profitable. The golden era of American made cars ran from 1957 till 1972 for those in the know.

Huh? Why 1957? It was from the model T to about the mid 70's when people started buying japanese economy cars. The biggest reason for that was gas prices started going higher and higher.

 

[Jack Davenport]

 

[Supafly]

Are you tired of all that winning yet?

 

[Jack Davenport]

Are you tired of all that winning yet?

Your elementary grasp of economics is quite telling.

Not tired of winning at all, more to come.

 

[xfire]

"Osama Bin Laden is dead and General Motors is alive."

Absolutely factually accurate, then here comes Trump with his trickle-down-on-steroids, if you think Bush's '08 crash was bad, People Get Ready™, you ain't seen nothing yet, the imminent Trump crash is going to make it look like a minor blip.

 

[Jack Davenport]

Absolutely factually accurate, then here comes Trump with his trickle-down-on-steroids, if you think Bush's '08 crash was bad, People Get Ready™, you ain't seen nothing yet, the imminent Trump crash is going to make it look like a minor blip.

You mean the manufacturing jobs that O-Zero said were never coming back but did?
The GM bailout that caused GM to tread water for 8 years was implemented by the Bush administration.
He should have let them fail back then and someone would have bought them out.

Ford Motor Company took no federal money and are thriving.
It’s GM’s business model that’s the problem,not Trumponomics.

https://www.google.com/url?sa=i&sou...aw0LSVagAsjEg2f95rz52_9b&ust=1543413518052831



But you knew that too, right? Sarcasm and all that good shit.
Those deutsche marks tho.

 

[xfire]

Don't you like pointing out that the budget deficit for Obama's 1st year in office was, "larger than any under the Bush administration"?

 

[Jack Davenport]

Don't you like pointing out that the budget deficit for Obama's 1st year in office was, "larger than any under the Bush administration"?

No, I like pointing out that O-Zero’s bullshit claim of falling deficits every year is because he started out with massive spending his first year which included a failed 750 billion stimulus. It could do nothing but decrease.

 

[xfire]

You really should tout the yearly falling deficits during the Obama administration, Republicans were in control for a majority of them, and being the constitutional expert that any lawyer should be, you know that Article I, Section 8 gives Congress control of the budget, not the president.

 

[Jack Davenport]

You really should tout the yearly falling deficits during the Obama administration, Republicans were in control for a majority of them, and being the constitutional expert that any lawyer should be, you know that Article I, Section 8 gives Congress control of the budget, not the president.

Actually, many lawyers are not constitutional experts. They have a basic knowledge of the constitution and apply it accordingly. However, there are constitutional scholars that are steeped in the constitution and is their main area of focus and practice.
The power of the purse? Is that what you mean?
In early 2009 there was a healthy majority in the house and a damn near supermajority in the senate.
That’s all yours slick.

I bet I am being the victim of your wicked sarcasm again, aren’t I? You sly devil you.

 

[xfire]

Does, "early 2009" constitute, "falling deficits every year"?

I appreciate how much effort you're putting into keeping things from getting personal, keep up the good work, friend.

 

[Jack Davenport]

Does, "early 2009" constitute, "falling deficits every year"?

I appreciate how much effort you're putting into keeping things from getting personal, keep up the good work, friend.

Obama won every government shutdown, every one.

There was no GOP resistance of any consequence to O-Zero’s budgets. Oops, I said resistance.

 

[xfire]

Fact is, and you know this, Obama was a great president, far superior to the intellectual midget and traitorous bastard that barely eked out a victory over the worst possible candidate the Democrats could have possibly fielded. I can't wait till the Democrats come roaring in on 3 January, get ready.

 

[Jack Davenport]

Fact is, and you know this, Obama was a great president, far superior to the intellectual midget and traitorous bastard that barely eked out a victory over the worst possible candidate the Democrats could have possibly fielded. I can't wait till the Democrats come roaring in on 3 January, get ready.

Pro tip: Sarcasm is not to be self inflicted.
“Obama was a great president”
:rofl: :rofl:

https://www.google.com/url?sa=i&sou...aw3488uRGDNa3yeMT1RC5bk0&ust=1543417261150284

History suggests otherwise.

No scandals in 8 years. *chortle*
Fast And Furious
Benghazi
IRSgate

 

[xfire]

Pro tip: Sarcasm is not to be self inflicted.
“Obama was a great president”
History suggests otherwise.
No scandals in 8 years. *chortle*
Fast And Furious
Benghazi
IRSgate

How many criminal indictments of Obama administration officials? How many criminal indictments of Trump administration officials? Every, "Obama Scandal" was manufactured by the GOP obstruction. I'm not trying to dunk on you, you just keep doing it to yourself. How y'all like my new Avatar? "Lil' Adam Schitt", sums up just how scared Big Pussy Trump is for himself and his family.

 

[Jack Davenport]

How many criminal indictments of Obama administration officials? How many criminal indictments of Trump administration officials? Every, "Obama Scandal" was manufactured by the GOP obstruction. I'm not trying to dunk on you, you just keep doing it to yourself. How you like my new Avatar? "Lil' Adam Schitt", sums up just how scared Big Pussy Trump is for himself and his family.

Trump administration officials indicted: 1 Michael Flynn plea likely to be vacated.

As for O-Zero:
https://www.investors.com/politics/editorials/think-obama-administration-wasnt-corrupt-think-again/

Keep on dunking there Skyhook.

:1orglaugh