But I suspect he will recover his footing. https://www.realclearpolitics.com/video/2018/11/27/trump_blasts_gm_over_plant_closure_layoffs_they_better_put_something_else_in.html I don't think he should be pressuring a Company to do anything that will not produce a profit. No way can he help GM make cars in the US that people do not want, that do not make a profit. However, GM closing US plants does show just how wrong it was for Obama to bail GM out at the cost to US tax payers. Even Trump can't make that right.
Tarriff do not have jack to do with why my wife has a New Toyota instead of a Chevy. The last Chevy I bought was a 2007 Suburban. It had so damn much shit on it that I was never able to get it all working at the same time. A real pain in the ass. That's it, no more GM! Damn near as bad as the crappy Fords.
It has to do with the cost of doing business in America... which is why they're closing their factory.
https://www.nbcnews.com/business/au...-lead-job-losses-warns-general-motors-n888361 " July 2, 2018 / 12:03 PM PDT / Updated July 2, 2018 / 12:03 PM PDT By Paul A. Eisenstein General Motors is one of the latest to weigh in on the threat of new tariffs targeting foreign autos and automotive parts, warning that GM could be forced to scale back production and cut U.S. jobs. GM Chairman and CEO Mary Barra, who briefly served on President Donald Trump’s economic advisory council before it was disbanded last year, is the latest to come out against tariffs that could run as high as 25 percent. Harley-Davidson has already announced plans to move some production abroad, while BMW has said it would likely cut back operations at its Spartanburg, South Carolina plant that is currently the largest exporter of American-made automobiles. “Increased import tariffs could lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs,” GM said in a statement submitted to the Commerce Department which has been ordered to consider whether auto imports are a threat to national security and, if so, whether tariffs need to be implemented." And then five months later https://www.theverge.com/2018/11/26/18112536/gm-layoffs-factory-closing-ending-production-chevy-volt
Right! I see your logic. We should have system of importing cheap materials so that US assemblers can make inferior products here cheap enough to compete with imports vehicles. Holding the US tax payers and Consumers under treat of closures if we do not stand. I don't think it is a matter of price with the vehicles. Some you just don't want.
We pass tariffs, they pass tariffs. Who wins? Doesn't seem like we are. And here's the biggest issue, it's like people aren't willing to recognize that we're not a manufacturing country anymore. The younger generations don't want to work in factories, and the factories don't want to pay a decent salary anymore. It's cheaper to build shit overseas, and they want the work. All the while, the cost of living goes up because it costs more to import things. So who gets hurt? The ever day schmuck.
There is no doubt that the Tariffs hurt the automobile manufacturers. https://www.reuters.com/article/us-...s-idUSKCN1M61ZN?feedType=RSS&feedName=topNews https://www.bloomberg.com/graphics/tariff-tracker/ But, the reality is that GM is basically updating it's portfolio based on what people buy, it is just that tariffs make it impossible for them to continue to support the under-performing products - leading to plant closures. Trump basically shot himself in the foot here. His support is all about the economic success which he inherited. Unfortunately for him, his policies seem to ruin that.
I see the cost of steel increases with the tariff by about $175-200 per ton. Let's see, maybe a 100 bucks per small car. Not likely to save the GM cars when the tariffs are lifted. Nor will it keep the knobs on the little turkeys either.
GM sold 3 million cars in 2017, they had an operational profit of $3B (ignoring the one time loss of the sale of their European operations). They are on track for selling 2.6 million cars in 2018 and if we assume the tariffs hurt them the same way they hurt Ford - they would basically go to somewhere over $1.5B operational profit compared to last year. Add the fact that they will need to increase spending on R&D because of the change to the market to electric and ride-sharing - and it is pretty clear they had to do something. My gut feeling is that if the tariffs were not imposed - they would have likely gone to much smaller cutbacks to avoid laying off so many people, but when you tackle this big chunk off their profits on top of changing market conditions - it was just a question of time.
Kind of like the new Mexico and Canada trade deal which is now being called Nafta pt 2 In other words, tear down an existing deal only to rename essentially the same deal with some minor tweaks and then claim you fixed it. lol
