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Thread: GM to slash jobs and close eight plants

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    Administrator Dr. Who's Avatar
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    GM to slash jobs and close eight plants

    General Motors (GM) plans to halt production at five factories in North America and cut more than 14,000 jobs.

    The US carmaker has also announced it will close three plants outside North America by the end of 2019.The moves follow rising costs and slower car sales and come as the firm focuses on its line-up of trucks, electric and self-driving vehicles.

    But the restructuring drew swift criticism from politicians, including President Donald Trump.

    "I am not happy about it," he said of the plans, which undercut his claims that his policies are spurring a revival in the US auto industry."They better put something else in."Why is the company doing this?
    The production cuts come as buyers in North America have turned away from smaller cars to bigger vehicles such as SUVs and trucks, which now make up nearly 70% of total US car purchases.

    Ms Barra said GM wants to invest in electric and autonomous vehicles, which are expected to drive future industry growth.

    She is also responding to rising costs - including from new tariffs on materials such as steel - while preparing the firm for the next downturn, after US car sales peaked in 2016.

    ~snip

    The closures in North America include an assembly plant in Oshawa, Canada; facilities in Detroit and Warren in Michigan; a plant in Warren, Ohio and a site near Baltimore in Maryland.

    It is also closing a factory in South Korea, as announced in February, as well as two other international facilities that were not specified.
    https://www.bbc.com/news/business-46350057

    Apparently, most of the work will be moving to Mexico and China.
    "The difference between what we do and what we are capable of doing would suffice to solve most of the world’s problems.” Mahatma Gandhi

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    Administrator Gamewell45's Avatar
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    I'll bet you trump is flipping out right now; although it's probably not his fault directly, he may have to take the heat since he claimed that more car plants would open and more people would be hired to staff the new factories; instead, they are closing down factories. Not good.
    When you cuss a farmer, don't talk with your mouth full

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    Administrator Dr. Who's Avatar
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    Quote Originally Posted by Gamewell45 View Post
    I'll bet you trump is flipping out right now; although it's probably not his fault directly, he may have to take the heat since he claimed that more car plants would open and more people would be hired to staff the new factories; instead, they are closing down factories. Not good.
    He's totally flipping out. This contradicts his propaganda about his personal ability to bring back jobs and also contradicts his economic theory that cutting taxes for corporations will bring back jobs. Everyone knows that major multinational corporations don't even recognize a tax break that doesn't result in a negligible tax liability. With loopholes, they negate most of their tax liability anyway. The bottom line is disposing of payroll and ultimately automating operations. They can't get rid of personnel in America in favor of automation without political interference. Plant closures are easier to justify. The Chinese and Mexican governments are not going to squawk when they start dumping workers. They will be paid off.
    "The difference between what we do and what we are capable of doing would suffice to solve most of the world’s problems.” Mahatma Gandhi

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