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General Motors will close five plants and put employees: Trump responded furiously – 11/27/2018


The situation of American bonanza, with the economy in full growth and unemployment at historically low levels, begins to burst. General Motors, one of the most emblematic companies in the country, announced it will dismiss 14,500 employees, close five facilities and ends the production of six sedans.

The measure is a major blow to the president's promises Donald Trump It would create new jobs in the automotive industry. It is therefore The president reacted angryly, criticizes the company's decision.

Lordstown plant, where the Chevrolet Cruze is manufactured. (AP)

Lordstown plant, where the Chevrolet Cruze is manufactured. (AP)

Trump spoke immediately with General Motors CEO Mary Barra to express his dissatisfaction. "I spoke to her and expressed the fact that I'm not happy with what he did. I was very difficult. You know, the United States rescued General Motors, and taking her company out of Ohio is not good, he says.

Then Trump wrote several tweets where he openly threatened the company. "Very disappointed with General Motors and its CEO, Mary Barra, to close the plants in Ohio, Michigan and Maryland.The United States rescued General Motors, and this is the gratitude we received! Now we are studying the reduction of all subsidies, including those for electric cars, "he said.

The president, as he usually does in other conflicts, once again used nationalist arguments to question the company: "General Motors made a major venture in China years ago when they planted plants there. And in Mexico. I do not think the bet will win it. I'm here to protect American workers! "

General Motors announced that it will refrain from 15% of its employees. According to the planned, it includes 3,300 workers in the United States, another 2,600 in Canada and 8,000 administrators and managers. It would also close four assembly plants in the United States territory – one in Ohio, one in Maryland and two in Michigan – and one in Canada.

The action responds to two weight factors. First to the changes in demand and the new commercial requirements of the modern world. Second, to the boomerang effect of the trade war launched by Trump against China.

Lordstown Factory in Ohio, which would be closed in the next few months. (AP)

Lordstown Factory in Ohio, which would be closed in the next few months. (AP)

In the fight against the Asian giant The government put high prices on vehicles, which caused replications from the Chinese authorities. Thus, prices for imported cars increased as well as those that were exported.

For this we need to add the protectionist measures, for example application of 25% on steel tariffs and 10% on aluminum, both from China and from other supplier countries. This had a direct impact on car manufacturers.

Barra acknowledged that customs are a serious problem, which makes it clear, but made clear that they are not the only reason for the restructuring. The company, he said, makes these changes to prepare for the future. "We recognize the need to anticipate changing market conditions and customer preferences to position our company for long-term success," he said.

"It is expected that over 75% of GM's global sales volume will come from five vehicle architectures early in the next decade," said Barra. In this way, GM tries to focus its production on the most profitable vehicles like SUV and SUV.

Worker of General Motors in Canada. (AP)

Worker of General Motors in Canada. (AP)

In October almost 65% of new cars sold in the US they were trucks or trucks, 15% more than five years ago. Most of the facilities affected by this restructuring produce vehicles that will not be sold in the region. One of them It will be Chevrolet Cruze. The future of the other plants depends on negotiations with the unions.

The company is also preparing for electric cars and autonomous. CEO of GM pointed out that when cars and trucks become more complex, the company will need more programmers and fewer engineers who work with internal combustion engines. "Vehicles are increasingly dependent on software. We need many technical resources with millions of codes, he says.

The drastic action of General Motors Totally meeting Trump's policy, who had promised to revive jobs in the US industrial belt. and promote the manufacture of cars in the country. Ohio, where one of the plants will be closed, is one of the most important states on the election chart and helped him come to power in the 2016 election.

The image can be even more complicated as General Motors only expected what other companies are planning to do. According to experts, Ford could adopt a similar policy in the coming months.

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