Thousands of jobs are to be eliminated, several factories could be closed. Accordingly disappointed US President Trump reacted.
As part of a drastic austerity program, the US carmaker General Motors (GM) wants to cancel 15 percent of its jobs in North America. In addition, several factories could be shut down, as the company announced. About 14,700 jobs will be affected.
As a reason, GM boss Mary Barra said she wanted to adjust the company to changing market conditions and position for long-term success. GM wants to save $ 6 billion a year by the end of 2020. The costs are expected to fall by $ 4.5 billion and investment by $ 1.5 billion per year.
This is to free funds to invest in the development and production of electric cars and autonomous vehicles. In addition, production is to be geared towards a more future-oriented approach: from limousines that are barely in demand in the US to SUVs, trucks and mini-vans.
Negotiations with unions
The factories under construction could be closed or orders for the construction of other models could be obtained. This will be discussed in collective bargaining with the unions next year. Affected are two plants in Detroit, one in Ohio, one in Baltimore and one in the Canadian state of Ontario.
Trump reacts angrily
GM’s announcement is a blow to US President Donald Trump. He had promised in the election campaign a new heyday of the auto production sites in the so-called rust belt in Michigan and Ohio.
Accordingly, his reaction failed. In an interview published on Monday by the „Wall Street Journal“ Trump called on the company to stop car production in China. GM should prefer to produce its vehicles in the USA.
To reporters, Trump said he was not happy with GM’s decision to shut down a plant in Lordstown, Ohio. He told GM boss Barra. Barra assured him that the measure had nothing to do with the recently imposed protective tariffs. The decision was due to meager sales figures. Trump then advised her by her own account to bring a car on the market, which sells well.