Punch at GM: the shock of reality in Trump-Land

Donald Trump also leads his "America First" strategy. It's not only aggressive, but especially confrontational. With General Motors, it is the largest automaker in the country and is currently in business with the President of the United States.

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In Tupelo's election campaign, Donald Trump is in his element: "Over the years, you have seen powerful forces moving your jobs to Washington – this is about to change," said the US president to his supporters in Washington. the state of Mississippi.

The fact that the largest US automaker General Motors has recently announced the closure of several factories and the removal of thousands of jobs is something that Trump does not mention at all.

In fact, the austerity agenda of the car icon is a bitter blow for the US president in several ways.

Austerity plans not only show that the future of key industries such as the auto industry is uncertain, despite the fact that Trump is bragging about the low unemployment rate and the strength of the US economy because of its massive tax cuts.

Part of the painful shock of reality is that Trump himself is partly responsible.

The automotive industry cries under punitive tariffs

Because the American auto industry is groaning in the customs dispute initiated by the US president with trading partners such as the EU or China.

"As expected, Trump's punitive tariffs are damaging to all parties, so Americans are shattering," said FDP Vice President Michael Theurer.

In particular, increased barriers to imports for steel and aluminum are a significant burden. "The metal tariffs have brought in about $ 1 billion in profits," said Jim Hackett, Ford's CEO, at the end of September.

This public fact – unpleasant for the Trump government in Washington – is part of the grounds for the job cuts that GM has so far only admitted with reference to "an increase in material costs ".

Officially, the reasons were the reasons for the cancellation of work on Monday: in sales of sport utility vehicles and pick-up love in America of small and medium-sized passenger cars, production is therefore adapted to changing market conditions. In addition, investments in electric cars and autonomous driving are needed to prepare for the future.

GM's director, Mary Barra, wants to avoid as much as possible to thwart the known for his temper Trump against himself.

Senior management briefed the US president Sunday night on his plans and apparently tried to make him indulgent.

However, it was only partially – while Twitter tirades or major explosions were occurring, but Trump clearly explained his position: "It was a big mistake from GM," he said. at the "Wall Street Journal". "I think they forgot where they came from."

Trump asks GM to leave China

Trump called on the automaker to stop production in China and instead of saying "Oh damn, quickly open a new factory in the US state of Ohio".

If the job remains permanently closed there, she has "a problem," threatened Trump's boss, Barra. He also told reporters in Washington that the United States had done a lot for GM – and that they were able to put a lot of pressure on the group headquartered in Detroit.

The influential US auto union UAW is already attacking GM 's austerity course. The group could therefore face stiff opposition from an alliance of Trump supporters and workers' representatives.

"The ruthless decision of GM to reduce or shut down its operations in US factories while producing more for the US market in Mexico and China is seriously harming US workers," said Vice President of the United States. UAW, Terry Dittes.

Indeed, given the recent development of business, GM's austerity program must be a blow to one of the estimated 15,000 employees likely to be fired in North America.

In fact, the auto giant recently ran the following round: during the summer quarter, sales grew 6.4% year-on-year, with net profit going up to 2.5 billion dollars.

Therefore, the fact that the industry leader is braking so hard is also a bad omen for the US economy as a whole.

Since 2009, the US auto industry market has been steadily strengthening and, in recent years, a boom in sales fueled by cheap fuels and favorable financing rates has led to record sales and significant sales. profits for manufacturers.

The Trump government has fueled the already very dynamic US economy this year with massive tax cuts, but more and more experts are now pushing to end the recovery. GM and Ford had already issued profit warnings in the middle of the year. (DPA / MWO)