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General Motors' intention to cut 15,000 jobs and close up to four US factories sparked strong criticism from Washington on Monday.
The company's plans to fundamentally restructure its operations worked well with investors, resulting in higher GM inventories. But President Trump
Donald John TrumpFranklin Graham: Trump Defends Christian Faith Trump Calls for "60 Minutes" Report on Family Separation Report and lawmakers on both sides blamed the company for cutting jobs nine years after the multi-billion dollar bailout of the auto sector.
Trump said Monday that he had urged General Motors President and CEO, Mary Barra, to continue producing cars in the factory in Lordstown, Ohio, which the company was considering close, and told him that GM "would do better to return soon".
"I love Ohio," Trump told the Wall Street Journal. "I told them, you play with the wrong person."
Democrats and Republicans from states hosting targeted factories accused GM of betraying workers who dedicated their careers to the famous automaker and taxpayers who saved it from failure during and after the Great Recession.
Officials from Ohio and Michigan said they were going to ask Barra to get a respite from scheduled cuts, but local business employees are gearing up for closures devastating factories as early as March 2019.
"This decision is the biggest corporate greed," Sen said. Sherrod Brown
Sherrod Campbell BrownSherrod Brown said that he "seriously thought about" the 2020 presidential election bid, Schatz: Dems will name a progressive film by 2020: Preview: Trump dispute and John Roberts and Ivanka in the spotlight MORE
(D-Ohio) in a statement.
GM announced Monday that it was not going to affect any products in 2019 at Lordstown's automobile assembly plants; Detroit-Hamtramck, Mich .; and Oshawa, Ontario, Canada, and auto parts factories in Warren, Michigan, and White Marsh, Md.
No less than 5,901 hourly employees and 804 employees are at risk of losing their jobs if GM does not outsource a new product to the factories, which produce parts for several Chevrolet, Cadillac and Buick vehicles, which GM will discard in the next two years.
GM also revealed an imminent 15% reduction in its workforce and the elimination of 25% of management positions. The cuts would save the company $ 6 billion by the end of 2020, but would create about 15,000 jobs.
GM's announcement enraged government officials, auto industry workers and unions who could be harmed by plant closures, the Oshawa plant's walkout strikes, and the deep concerns in the area. the industrial Midwest.
Trump told reporters on Monday that he would put intense pressure on GM to keep the Lordstown assembly plant open and stop producing cars in China, where the company operates a handful of factories.
"I said," This country has done a lot for General Motors, you'd better come back here soon. It's Ohio, and you'd better get back soon, "said Trump.
"I have no doubt that they will put something else in a not too distant future. They'd better put something else. "
Barra said Monday that the company's plan would allow it to "continue its transformation so that it is extremely agile, resilient and profitable, while leaving us the opportunity to invest in the future".
The company's shares closed up 4.8% on Monday as Wall Street planned to expand its profit margins.
The elected representatives of GM representatives, however, broke into the company shortly after the announcement of a plan to reduce its operations in North America.
After the bankruptcy of the company in 2009, GM received $ 51 billion in government bailouts, repaying all except about $ 11 billion by 2013. If the rescue measures taken by the government saved GM, the company has been steadily reducing its manufacturing operations in the United States due to insufficient sales.
"We fought together to keep GM afloat and the American taxpayers saved them under the weight while they were on the brink of bankruptcy," Rep said. Tim Ryan
Timothy (Tim) John RyanLet are voting fairly and transparently for the Speaker of the House. Congress and the American people deserve no less. Pelosi weakens political power in the race for the presidency. Dems supports Pelosi as president by 2 votes out of 1 in the new poll (D-Ohio), whose district includes the Lordstown factory.
"Thousands of families have made sacrifices to integrate GM into what it is today. And in return, GM has turned its back on us when we need it the most. "
Sen. Rob Portman
Robert (Rob) Jones Portman – Night Health Care: Senior Trump Refugee Official Takes New Job at HHS | Tom Price joins the transition of Georgia's new governor | The FDA's crackdown on smoking catches the eye on the bright side The company's price for the treatment of opioid overdose has increased by 600%: Senate report The case for Bipartite solutions MORE (R-Ohio) said he was "deeply frustrated" by GM's decision and that the company "had dropped Northeastern Ohio."
GM's withdrawal from the United States is the latest blow to an American car industry in ruins, facing several serious threats in the coming year.
Trump's tariffs on imported steel and aluminum have increased production costs for US automakers who are struggling to compete with their foreign competitors. The president's plans to impose tariffs on foreign automakers could drive up prices in the industry and slow down the global economy.
The intensification of trade tensions between the Trump administration and its major trading partners, exacerbated by the slowdown in global growth, could also be a threat to the industrial Midwest and the automotive sector, the engine of its growth.
Trump is committed to relaunching the US auto industry and ending decades of outsourcing that has seen iconic automakers relocate jobs overseas. His argument in favor of American builders against foreign rivals helped him win voters in the old Democratic fiefdoms of Ohio, Michigan and Wisconsin.
representative Debbie Dingell
Deborah (Debbie) Ann DingellCicilline bows out of the leadership race. Lujan Pelosi swears to expand his management team. Representative Debbie Dingell said she heard about gang rape while she was at the university. MORE (D-Mich.), Who represents parts of the suburbs of Detroit, said GM's announcement was a "warning" that Congress should work together to revive the struggling US auto industry.
"If we want our automotive industry to continue to be the world leader in transforming mobility, federal policy must ensure we keep it at the forefront of innovation and technology," he said. Dingell.
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