Connect with us

Politics

GM tries to make peace with Trump after threats

Published

on

general motorsGM headquarters in Detroit.Bill Pugliano/Getty Images

  • GM and Trump have butted heads over GM’s decision to idle numerous US factories.
  • GM isn’t going to change its plans, but on Tuesday it affirmed its commitment to US manufacturing.
  • It remains to be seen whether Trump will back down.

On Monday, General Motors announced that in 2019 it would idle a total of four US factories and one in Canada.

On Tuesday, President Trump decried the decision.

Now, GM appears to be cooling off the situation by noting its ongoing commitment to US manufacturing — and to Ohio in particular, a critical Trump swing state in 2016 where the automaker plans to end production of the slow-selling Chevy Cruze sedan at its Lordstown factory, potentially laying off 1,600 workers.

“GM is committed to maintaining a strong manufacturing presence in the US, as evidenced by our more than $22 billion investments in US operations since 2009,” the automaker said in a statement.

“Yesterday’s announcements support our ability to invest for future growth and position the company for long-term success and maintain and grow American jobs. Many of the US workers impacted by these actions will have the opportunity to shift to other GM plants where we will need more employees to support growth in trucks, crossovers and SUVs. GM’s transformation also includes adding technical and engineering jobs to support the future of mobility, such as new jobs in electrification and autonomous vehicles.”

Read more: Trump’s views on the US auto industry are childish and intended only to rally his supporters

Pointedly, GM added, “We appreciate the actions this administration has taken on behalf of [the] industry to improve the overall competitiveness of US manufacturing.”

GM and CEO Mary Barra don’t want to engage in a public showdown with Trump, even though the company’s decisions about its product allocations to US factories have already been made. The automaker’s stock, which surged 5% on Monday on the news of $6 billion in cash benefits from idling plants, declined 3% on Tuesday. Year-to-date, shares are down 12%.

We’ll see if Trump backs off, because GM isn’t going to adjust its plans.

Continue Reading
Advertisement Find your dream job

Trending