Published: Tue, November 27, 2018
Money | By Bruce West

Trump Tough on General Motors For 14,000 Layoffs Announced

Trump Tough on General Motors For 14,000 Layoffs Announced

All of the products now being assembled at those three plants are expected to stop being produced by the end of 2019.

"GM received record tax breaks as a result of the GOP's tax bill previous year, and has eliminated jobs instead of using that tax windfall to invest in American workers", he said in a statement.

About 6,000 factory workers could lose jobs in the USA and Canada, although some could transfer to truck and SUV plants.

A former Canadian auto executive said it would be hard for Canadian government officials to entice GM further to keep the plant open.

GM is expected to address union members at the Oshawa plant at 10 a.m.

"We're going to fill up those factories or rip them down and build new ones", Mr. Trump told a cheering audience. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse.

The company has said the additional tariffs have cost GM more than $1 billion.

One of the last industrial anchors in what was once Ohio's manufacturing core is now on life support, just a little over a year after President Donald Trump told people not to leave and promised that jobs would come back to the area.

The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. It will also close two factories outside North America, but did not identify them.

In a statement, Governor John Kasich said the news was "frustrating" but said he would work with GM to try to preserve the plant. Meanwhile, the decision to idle the plants is part of a strategic shift away from cars and toward trucks and SUV's ― Americans continue to buy big as gas prices remain relatively low ― as well as electric and self-driving vehicles.

"While the union does not have complete details of the overall announcement we have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019", the union said.

GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong," Barra told reporters.

GM plans to halt production next year at three assembly plants: the Lordstown small-car factory near Youngstown, Ohio; the Detroit-Hamtramck complex in Detroit; and the Oshawa, Ontario, assembly complex near Toronto.

He said he told Ms. Barra that GM should stop making cars in China and open a new plant in OH to replace the facility targeted for closing.

Unlike its plants making passenger cars, many of GM's plants producing its higher-margin trucks and SUVs are running on three shifts, with some running six and sometimes seven days a week to keep up wih demand.

There are many moving parts to GM's announcement Monday.

Chiodo points out GM has yet to officially announce a plant closure - just that there will be no product. They are working together to come up with a solution that works for GM and the employees. The plan also will end work at plants that make transmissions and other components in Maryland and MI. Trumbull County, Ohio, where the village of Lordstown is located, backed him with 51% of the vote after four years earlier giving Barack Obama 60% of the vote.

But moving that vehicle, the Chevrolet Cruze, south of the border brings the risk of provoking a backlash from President Donald Trump.

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