General Motors will close five factories and lay employees: Trump reacts with fury – 11/27/2018

The situation of bonanza of the United States, with the growing economy and unemployment at historically low levels, begins to crack. General Motors, one of the most iconic companies in the country, has announced that will lay off 14,500 employees, close five factories and put an end to the production of six sedans.

The measure is a blow to the promises of the President Donald Trump this would create new jobs in the auto industry. For that the president reacted indignantly, criticizing the decision of the company.

Clarin Bulletins

What happened today? We tell you the most important news of the day and what will happen tomorrow when you get up

From Monday to Friday in the afternoon.

Trump immediately spoke to General Motors General Manager Mary Barra to express his dissatisfaction. "I spoke to him and expressed the fact that I'm not happy what he's done. I was very hard. You know, the United States has saved General Motors and the fact that it is pulling the company out of Ohio is not good, "he said.

Then, Trump wrote several tweets where he openly threatened the company. "Very disappointed with the decision of General Motors and General Manager Mary Barra to close factories in Ohio, Michigan and Maryland.United States. saved General Motors, and that's the gratitude we received! We are now studying the reduction of all subsidies, including those for electric cars, "he said.

The president, as he usually does in other conflicts, again used nationalistic arguments to question the society: "General Motors made a big bet in China years ago when they built factories there. And in Mexico. I do not think this bet will win him. I am here to protect American workers! "

General Motors has announced the dismissal of 15% of its employees. According to plan, it includes 3,300 workers in the United States, 2,600 workers in Canada and 8,000 administrators and executives. It would also close four US badembly plants – one in Ohio, one in Maryland and two in Michigan – and one in Canada.

The measurement responds to two weighting factors. First of all, changes that occur in demand and new business requirements of the modern world. Second, the boomerang effect of Trump's trade war against China.

In the fight with the Asian giant the government imposed high rates on vehicles, which provoked replications from the Chinese authorities. Thus, the prices of imported cars have increased as well as those of exported products.

To this must be added the protectionist measures, such as the application of 25% on steel tariffs and 10% on aluminum, from China and other supplier countries. This had a direct impact on car manufacturers.

Barra acknowledged that tariffs were a serious problem, along with tariffs, but said they were not the only cause of the restructuring. Society, he said, is making these changes to prepare for the future. "We recognize the need to anticipate changing market conditions and customer preferences in order to position our company for long-term success," he said.

"We expect more than 75 percent of GM's global sales volume to come from five vehicle architectures early in the next decade," Barra said. In this way, GM seeks to focus production on the most profitable vehicles, such as SUVs and SUVs.

In October, almost 65% of the new vehicles sold in the United States were trucks or trucks15% more than five years ago. Most plants affected by this restructuring are producing vehicles that will not be sold in the region. One of them it will be the Chevrolet Cruze. The future of the other factories will depend on negotiations with the unions.

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

The drastic measure of General Motors Strikes Straight on Trump's Policywho had promised to revitalize job creation in the American industrial belt. and promote car manufacturing in the country. Ohio, where one of the factories will close, is one of the key states on the electoral map and helped it gain power in the 2016 elections.

The situation could become even more complicated as General Motors has only anticipated what other companies are planning to do. According to the experts, Ford could adopt a similar policy in the coming months.