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After Losing $1 Billion to Tariffs, General Motors Announces 14,000 Layoffs

OscarLevant

OscarLevant

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Trump's policies are coming home to roost.

After Losing $1 Billion to Tariffs, General Motors Announces 14,000 Layoffs - Hit & Run : Reason.com

That [tariffs] may have played a role in the decision to lay off what amounts to 8 percent of GM's global workforce. The layoffs will hit 8,000 white-collar employees and at least 5,900 blue-collar workers.

Still, the added cost imposed by the tariffs is surely a factor. As Scott Lincicome, a trade attorney and senior fellow at the Cato Institute, pointed out on Twitter, that $1 billion could have paid for a years' salary for 24,000 assembly line workers (who make an average salary of $41,000).

If nothing else, losing $1 billion to higher import taxes may have forced GM to take more dramatic steps more quickly than otherwise would have.

It's also a reason why the company is unlikely to take Trump's advice, offered Monday afternoon, to replace production of the Cruze with something else in Ohio.

Trump told The Wall Street Journal that he spoke with GM CEO Mary Barra on Monday and told her that GM "better damn well open a new plant there pretty quickly.

But as long as the tariffs remain in place, GM and other American automakers have little incentive to expand production and every incentive to find new supply chains and cost-cutting strategies to avoid the import taxes. All the threats from the White House won't change the economic landscape that the Trump administration has helped create, one that is rockier than ever for American manufacturers and the people they employ.
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From Russia With Love
 
41,000 a year is $20.00 and hour.McDonalds is paying $15.00 and hour plus uniforms and a meal allowance.Plenty of good jobs out there for these folks.
 
OscarLevant said:
Trump's policies are coming home to roost.




From Russia With Love
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Ford expanding, European and Asian automakers expanding...GM laying off.

For some reason I don't think the problem is tariffs.
 
Those same tariffs apply to all cars made in the US...like Ford's, Hondas, Toyota's, etc.


Where are their lay offs?
 
OscarLevant said:
Trump's policies are coming home to roost.




From Russia With Love
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What BULL****. Yeah..."the tariffs did it" not continued FAILURE by their OWN PATHETIC MANAGEMENT, and OVERPAID UNION.




GM's net losses since 2005 total $51.1 billion.


GM posts $15.5 billion loss for Q2, third-worst in its history - ABC News


"Trump's Chickens". Hilarious. As ALWAYS, the left tries to BLAME EVERYONE ELSE FOR ITS FAILURES , GM being yet, ANOTHER.

The REST of the US economy, THAT DIDN'T TAKE $BILLIONS in TAXPAYER BAILOUTS FROM OBAMA, are doing just fine.

And how much of those TAXPAYER DOLLARS did GM KICKBACK to POLITICAL CAMPAIGNS?
 
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KevinKohler said:
Those same tariffs apply to all cars made in the US...like Ford's, Hondas, Toyota's, etc.


Where are their lay offs?
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Fords are coming, but it was making most of its sedans outside of the US, so when it shuts down the production of its sedans, the job loses will be outside of the US. As GM is killing some sedans for sale in the US and Canada, those production sites (which were in the US and Canada will be shut down. Namely the sites that produced the Impala, Oshawa Ont and the Cruze (Lordstown)

If GM is to remain a going concern it has to ensure its profitability. If it has to much capacity it needs to reduce it. Plants do not make money at 70% of capacity. GM used to make stupid deals with its unions to keep plants open when they should have been shut down. That lead to its bankruptcy (along with bloated management)
 
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