Tell Donald about the 15,000 GM are about to sack despite these tax cuts, huh? And how many more reliant on that GM productivity (down the line) will also lose jobs or go broke? Yay for job creating tax cuts to the big end of town. Meh.
Oh...and Donald is angry. But Donald, you promised that you wonderful tax cuts would produce more jobs! Why are you punishing GM for the failure of your own policy? Weird as usual. https://www.abc.net.au/news/2018-11...sappointed-gm-closing-five-factories/10561108
Not all of these jobs are in the US, and many are in Canada. Also if you look at the industry overall 330,000 manufacturing jobs have been added overall in the past 12 months which is the best manufacturing growth since 1995.
So.....other than in the US.....where are these other GM jobs which are being axed, and can you provide a link?
GM is retooling it's plants, something they should have done years ago. Trump needs to keep his nose out of their business.
The operative word is despite. GM has been managed incompetently for decades. The company can't even run competently in a strong economy. The current situation is simply the latest consequence. They still haven't repaid the bailout either. If we had simply not baled them out, we would have survived the company's failure and be rid of it. Watch them do another bailout.
They are cutting 2,500 production workers in Canada and 3,000 in the US. They are cutting 8,000 in the US. One reason for this is sluggish sales and consumers just not buying as many cars as we used to. It isn't necessarily Trump's fault here. https://www.nytimes.com/2018/11/26/business/general-motors-cutbacks.html
90% of US sales are in SUV's and trucks, I first heard about this back in April.. Ford plans to drop most of they're car's as well. https://techcrunch.com/2018/04/25/f...rth-america-but-the-mustang-and-focus-active/
Unfortunately the corporations are using the savings on stock buy-backs as opposed to expanding operations.
Retooling? They burned $10 billion on their own stocks. The executives are happy, because the buy-backs improve the value of the stocks and much of their salary is in company stock.
With everybody getting tax cuts, more money to spend on stuff like cars, yes? Or is the trickle down not working? Hmmmmm.
...then you read wrongly I'm afraid. The majority of US vehicle sales are indeed trucks and SUVs but it's closer to 70% of the market https://www.marklines.com/en/statistics/flash_sales/salesfig_usa_2018
In GM's case what's the point in expanding operations when not enough people are buying what you're selling ? They are withdrawing from markets around the world (witness the sale of Opel/Vauxhall) and in their core North American market, they are focusing on trucks and SUVs. While that may be a sustainable business model if you plan to be a large but niche manufacturer, IMO it's not the actions of a company looking to grow.
People are buying cars (or more specifically motor vehicles) because sales are growing. What they're not doing is buying GM vehicles in anything like the required number and especially they're not buying GM's cars.
The plants they are closing built models sold outside the US. If the trade war (tariffs) hiked the price of their product in EU and China by 20-30%, then obviously they would not be selling anything, so might as well pul the plug and let the workers go.
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