G.M. to Idle Plants and Cut Thousands of Jobs as Sales Slow (1 Viewer)

[MTAtech]

Exact title: G.M. to Idle Plants and Cut Thousands of Jobs as Sales Slow
Source: NY Times

General Motors said Monday that it planned to idle three car plants and two transmission plants in North America and cut several thousand blue-collar and salaried jobs in a bid to trim costs as the auto sector slows.
...
G.M.’s actions follow similar job-cutting moves by Ford Motor as new-vehicle sales have lost momentum because of a shift in consumer tastes.

For the last several years, as gasoline prices have remained low, consumers have gravitated toward bigger, roomier vehicles like pickup trucks and sport-utility vehicles. Demand for small and midsize cars has plunged.
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The companies have also paid a price for the tariff battle that President Trump set in motion. In June G.M. slashed its profit outlook for the year because tariffs on steel were driving up its costs. The company does not import a great deal of steel into the United States, but the increased demand for domestic steel has raised prices.

The reasoning is that the demand shift is away from sedans and small vehicles to SUVs and trucks. However, why is it that companies like Hyundai and Toyota, whose most popular cars are Sonatas, Elantras and Camrys, respectively.

 

[PTF]

You've mentioned the competition(s). GM has to compete. Sad to say the idea of the former administration's(regime) efforts to save the auto industry has failed as expected.
So who's next ?
Ford ?
Chrysler ?

 

[Mycroft]

Maybe Trump should boost a tariff on autos built in China. Then GM would have an incentive to close their Buick SUV plant over there and retool one of their US plants to make them here.

Surely, that would be some government control the Dems could get behind.

 

[JoanDavis]

You've mentioned the competition(s). GM has to compete. Sad to say the idea of the former administration's(regime) efforts to save the auto industry has failed as expected.
So who's next ?
Ford ?
Chrysler ?

Are you trying to blame President Obama for this? Sorry mate. This is ALL TRUMP'S DOING. And interfering with a private business's operations - actually attacking them if they don't do what he wants - is totally against what the republicans stand for.

Remember the republicans don't like governments interfering with private business and expect MARKET FORCES to sort out what a business does or doesn't do.

So all those GM employees that are about to get the pink slip;- THANK TRUMP!!!

 

[Taylor]

The reasoning is that the demand shift is away from sedans and small vehicles to SUVs and trucks. However, why is it that companies like Hyundai and Toyota, whose most popular cars are Sonatas, Elantras and Camrys, respectively.

Actually, the most popular Toyota is the RAV4. Hyundai is one of the only brands that actually has a sedan as its top selling model in the US. It is the exception, not the rule (their 2nd most popular car is the Santa Fe of course, not the Sonata).

 

[Middleground]

No, no, no... this cannot be right! Trump has promised to not only keep the jobs that were already here but to bring the ones that went away years before! Hang tight people; this cannot be right. Wait for the incredibly generous tax cuts to trickle down -- I'm sure it's going to happen any day now!