Automotive

Trump threatens General Motors as almost 15,000 workers lost their jobs.

Trump blasts General Motors for slashing thousands of jobs.

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This coming Christmas is not  going to be fun for a lot of Americans as General Motors, one of the biggest car makers in North America is closing 6 of it’s plants. Five of those plants are based in the United States while one is based in Canada. According to GM, the major reason for the closure is to streamline their production. Also cut off car models that are not selling well and invest in autonomous electric cars. Affected car models includes Chevrolet Cruze, Chevrolet  Impala, Chevrolet  Bolt, Cadillac XTS, Cadillac CT6 and Buick LaCrosse. These cars has seen steady decline in sales in recent years according to the company.

However, this unpopular move did not go down well with Trump.  He already promised the workers of Ohio, Michigan and Maryland he was going to bring more jobs to the states. Those states are key Republican states and he was livid about it because it hurts the “Trump Brand”.  He however showed his frustrations in a Tweet in which he threatened to cut all subsidies to General Motors.

As a result of this tweet, shares of General Motors crashed. He said the US saved General Motors from bankruptcy.  Referring to the U.S. bailout of major automakers after the 2008 financial crisis. President Trump blasted GM CEO Mary Barra for not closing any factory in China and Mexico.  He tweeted, “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!”.

Chevrolet Cruze: One of the affected cars

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The automaker’s shares crashed 3% following the tweet, the worst share drop experienced by GM this month. Reacting to president Trump’s threat and shares drop, the company says it remains “committed to maintaining a strong manufacturing presence in the U.S.” and noted that “many of the U.S. workers impacted by [plant closures] will have the opportunity to shift to other GM plants.”

“We appreciate the actions this administration has taken on behalf of industry to improve the overall competitiveness of U.S. manufacturing,” In an interview Trump told The Wall Street Journal that they’re putting pressure on the company to re-open hose factories.

 

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