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Speaking to a cheering crowd in Youngstown, Ohio, in July of last year, President Donald Trump promised more jobs would soon be flowing to the blue-collar city."Let me tell you folks in Ohio and in this area, don't sell your house," Trump said at the time, to wild applause "We're going to get those jobs coming back, and we're going to fill up those factories or rip them down and build brand-new ones. It's going to happen."Months later, though, Trump imposed new tariffs on imported steel and aluminum that increased prices for many American manufacturers, including carmakers. He followed those tariffs with others targeting Chinese-made goods, including parts used specifically in the manufacturing of automobiles. General Motors, in July, said Trump's tariffs would cost it more than $1 billion over a full year and the company's chief financial officer told Reuters that GM would deal with those added costs by "negotiating price reductions with suppliers, raising prices on more popular models, and cost cutting."The cost-cutting happened on Monday, when GM announced that it would eliminate about 14,000 jobs in North America and could close five manufacturing plants . . . One could argue that it's not a direct line from Trump's tariffs to GM's announcement Monday. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the Ohio plant, and an overall strategic shift towards more popular crossover and SUV models . . . . . . Still, the added cost imposed by the tariffs is surely a factor. As Scott Lincicome, a trade attorney and senior fellow at the Cato Institute, pointed out on Twitter, that $1 billion could have paid for a years' salary for 24,000 assembly line workers (who make an average salary of $41,000) . . . (A)s long as the tariffs remain in place, GM and other American automakers have little incentive to expand production and every incentive to find new supply chains and cost-cutting strategies to avoid the import taxes . . .
Bullshit. GM is closing plants for building low quality cars no one wants. Other than rental car fleets who sees Chevy Cruzes anywhere. Impalas are overpriced. People wanting space by SUV's. The Volt is a punchline. The LeCrosse is irrelevant in the luxury car market along with the Caddy counterpart.Tariffs are not the reason people gave up on these types of cars years ago. Better more fuel efficient SUV's and trucks did.
We shouldn't prop up failing businesses. That seems like the opposite of free market. If GM can't survive a trade readjustment that will ultimately turn out better for the U.S, well, sorry about your luck!
This isn't a trade adjustment. This is GM finally facing reality that no one wants their cars anymore. SUV's and trucks have been GM's bread and butter since the mid 90's.
The tariff situation didn't help. It's a catalyst for what should have happened years ago. We should aggressively fight for better trade situations regardless of the impact it has on any one company.
Trade is just a blame game for their ineptness. They and their union want everyone to buy American, yet they want to still buy cheap foreign steel so they can make huge profits on our dime. Screw ‘em. If they really want fair trade, then compete with products people will want and buy.
People wanting space by SUV's.
@Frank Cannon Not to mention pickup trucks. I see more new 4x4 Chevy trucks running up and down the road everyday than I do Japanese cars.
Every single auto you mention is on the chopping block.
They are a better value for what Americans do. Even women are driving them.
Hard to believe they are giving up on the Impala,and that the left is allowing them to dump the Volt.
Women driving pick up trucks. Imagine that!
I keep mine in the kitchen but I guess some get loose. There ought to be a law.
If the left wanted the Volt, where are all the customers buying them?
They probably aren’t wearing tight short skirts. That high step would be a killer.
No worse than trying to get in and out of a Corvette.
Don’t see many woman driving a vette compared to a pickup or medium to large SUV.
