Saving American jobs, eh?
2/12/18 18:36![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
fridi posting in ![[community profile]](https://www.dreamwidth.org/img/silk/identity/community.png){kind=small}
talkpoliticsDuring his presidential election campaign, Donald Trump made a lot of promises, including to workers in the automobile sector. Now GM may become a factor for Trump and GOP in 2020...
GM to Lay Off More Than 10,000 Workers, Close Five North American Plants
Although the move may or may not reflect the general trend in US economy, or may have more to do with corporate greed than anything (or not), it's clear that this is going to have an impact in several key states.
Trump, of course, has responded on Twitter, hinting that he's considering cutting state subsidies to GM - although CNN reports that the company actually receives minuscule subsidies. But the statement did also have an effect: after the markets initially responded positively by a 5% increase in GM's shares after their announcement of restructuring, they then fell by 3% after Trump's tweets.
5 of the 7 plants that are to be closed are in North America, 3 of them in key states like Michigan and Ohio. 25% of the layoffs will be managerial positions. GM will stop producing the Chevrolet Cruze, Cadillac CT6 and Buick LaCrosse. They're planning to focus on electric cars from now on. Which of course is the long-term trend woldwide.
As for Trump, he cares for the short-term effects. Michigan and Ohio are tightly contested states, and he relies on those workers for votes. Although GM's move was going to happen anyway, with or without his tariff policy, as they reflect the broader trend in the sector (Ford Motor and Fiat Chrysler are also considering similar steps), this may be one of those elements that could tip the balance against the president in two years.
GM to Lay Off More Than 10,000 Workers, Close Five North American Plants
Although the move may or may not reflect the general trend in US economy, or may have more to do with corporate greed than anything (or not), it's clear that this is going to have an impact in several key states.
Trump, of course, has responded on Twitter, hinting that he's considering cutting state subsidies to GM - although CNN reports that the company actually receives minuscule subsidies. But the statement did also have an effect: after the markets initially responded positively by a 5% increase in GM's shares after their announcement of restructuring, they then fell by 3% after Trump's tweets.
5 of the 7 plants that are to be closed are in North America, 3 of them in key states like Michigan and Ohio. 25% of the layoffs will be managerial positions. GM will stop producing the Chevrolet Cruze, Cadillac CT6 and Buick LaCrosse. They're planning to focus on electric cars from now on. Which of course is the long-term trend woldwide.
As for Trump, he cares for the short-term effects. Michigan and Ohio are tightly contested states, and he relies on those workers for votes. Although GM's move was going to happen anyway, with or without his tariff policy, as they reflect the broader trend in the sector (Ford Motor and Fiat Chrysler are also considering similar steps), this may be one of those elements that could tip the balance against the president in two years.
