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Trump warns GM could lose subsidies over layoffs

28 November, 2018, 03:30 | Author: Sara Gill
  • U.S. President Donald Trump speaks before pardoning the National Thanksgiving Turkey ‘Peas,’ in the Rose Garden at the White House in Washington DC. on Tuesday

They will also close two unnamed factories outside North America. The stock is still down about 7 percent this year. The assembly plants are in Detroit; Lordstown, Ohio; and Oshawa, Ontario. It will also close two factories outside North America, but did not identify them.

Rather, the cuts are entirely about General Motors preparing for what industry experts agree will be a hard and challenging future for old-school automakers, and doing so at a time when its balance sheet is relatively healthy and the company has room to manoeuvre, he said. Their futures will be part of contract talks with the United Auto Workers union next year.

President Trump had a simple suggestion for General Motors, which is looking to lay off thousands of works and possibly put plants up for closure in order to focus on the production of electronic vehicles: "Make a better auto".

The Detroit automaker - which USA taxpayers saved from collapsing with a $51 billion bailout a decade ago - announced Monday that it was ceasing production at five North American plants, including a facility in White Marsh that employs almost 300 people.

"Obviously, there's a lot of disappointment, even anger", Kudlow told reporters during a White House briefing Tuesday afternoon.

GM said the moves will save $6 billion in cash by the end of next year, including $4.5 billion in recurring annual cost reductions and a $1.5 billion reduction in capital spending.

"GM owes the community answers on how the rest of the supply chain will be impacted and what consequences its disastrous decision will have on the Mahoning Valley and our state", he said in the press release. That means GM needs to allocate more resources to purely electric cars, unlike the hybrid Volt, and to autonomous technology, Barra said.

Component sharing and expanded use of virtual tools will further reduce costs and lower development times respectively, with GM predicting that by the turn of the decade, 75 per cent of its global sales will derive from just five vehicle platforms. We have a lot of Senators, and a lot of pressure.

Barra said tariffs on imported aluminum and steel have hit the company, but she stopped short of saying they had anything to do with the restructuring. Morgan Stanley said investors now see GM as "a victor in Auto 2.0".

"Well, it's one plant in Ohio".

A rule of thumb for the automotive industry is that if a plant is running below 80 percent of production capacity, it is losing money.

GM will stop producing cars and transmissions at the plants through 2019.

"It's for the long-term viability of the company", said Acevedo. Truck and SUV plants, on the other hand, operate almost around the clock on three shifts and are at 105 percent of capacity.

Barra is cutting staff from operations that make conventional cars and hiring people who can design electric cars or add software prowess to GM Cruise LLC, the automaker's autonomous vehicle unit in San Francisco.

"I implore President Trump to keep his word when he came to the Mahoning Valley a year ago and promised jobs were 'all coming back".

The industry-wide slowdown in passenger auto sales started to pick up steam in 2017.

The restructuring reflects the changing USA and North American auto markets as a dramatic shift away from cars toward SUVs and trucks continues. Through the first nine months of 2018, that had fallen to a little over 31 percent.

These are the six cars that GM's range is dropping due to poor - and worsening - sales. As well as being roomier, the fuel economy on SUVs and crossovers has improved significantly.



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