GM, Washington Examiner, James James Langford discussed on This Morning with Gordon Deal
Chief executive officer Mary Barra at General Motors says a plan that will save about six billion dollars by laying off fourteen thousand workers and idling five North American factories illustrates the car makers resolve in the face of industry challenges like higher supply costs and shifting customer. Preferences business editor James Langford at the Washington Examiner says it's equality GM will need in order to whether the backlash from Washington were employees are better known as voters James explain GM melts. Does it involve basically idling several plants in North America? That. Employed. Thousands of workers obviously goes to cuts what people Washington, especially when it's in district districts like Ohio was particularly affected by these cuts, but major plant that made Chevy Cruz is going to be laying off workers lawmakers don't like this and added to the backlash is the fact that Ohio's kind of a swing state it back and forth between Republicans and Democrats. This was a state that Trump won in two thousand sixteen was not necessarily expected to win. A that was a bit of a surprise. And he has visited there. A couple of times promising that his policies for bringing back factory jobs. Obviously flies in the face of that the president was quite upset about it posted on Twitter a number of times. Busted GM talk to you about getting rid of federal subsidies for some of its products and makers on both sides of the actually from Ohio also were critical of the decision. Understand the white meat for GMT sort of plan for the future. But at the same time, they don't want to see by Stephen episode a traditional business involving making cars that haven't sold to. Well. Yeah, we're speaking with James Langford business editor at the Washington Examiner. He's written a piece entitled Washington backlash tests GM's resolve on factory closings and layoffs. What about going after maybe some of those federal subsidies, reducing them slashing them, cutting them at the president do that the president probably would not be able to do on its own on his own. What is coming into play here? There are subsidies for electric vehicles date back a couple of years. They were designed to. American car buyers car buyers if you will in to buy these electric vehicle, and depending on how much of the electric as opposed to gasoline operated. You could get a tax credit of up to seventy five hundred dollars. That was the I two hundred thousand vehicles company sold in the US. Tesla has already passed that level is close to it at last count. They weren't you know, one hundred ninety thousand they would like to extend that which is where the president. There's been a Bill proposed in the Senate that would do this. It's been bottled up in committee, so far, but you know, without pressure from electric car makers, there's a chance that could end up moving forward. Has opposition from the president. Especially with the divided congress. It be hard to get enough votes to ROY. Veto. Okay. They can't get Trump's backing about Bill would be in even more trouble. One of the reactions. That's come up a couple of times. And I know you mentioned your story too is missile idea the taxpayers rescued GM right during the recession GM now. Well, GM is making a good bit of money. Now, obviously. The after the rescue happened. The government. Some fifty billion dollars in kind of profit off. And they took a substantial share that stock for that they sold the stock after about five or six years. So we're talking twenty thirteen or so and. Awesome about eleven billion dollars on that investment. So. Sort of grudge on the part of tax payers and on the part of what weight. Makers representing taxpayers involving that money and saying, well, if GM's not gonna, you know, keep employing our workers, and maybe they should have to pay this money back. Anytime you have a government bailout. There's an expectation. Realized company is going to be kind of in debt and do what it can wait. Economy, help workers, etc. Etc. You saw some of the same backlash against spanks in the wake of the two thousand eight inch or crisis. The exception that the banks paid back of what the government invested in them. James James Langford business editor at the Washington Examiner..