General Motors, President Trump, Washington Examiner 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 carmakers 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 a quality GM will need in order to whether the backlash from Washington were employees are better known as voters James explain what happened GM announced does it involve basically idling several plants in North America. Is that you know, employed. Thousands of workers obviously goes against what people in Washington. What is in district strengths like Ohio was particularly affected by these cuts? Notre plant that made Chevy Cruz was just going to be. Laying off workers. And adding to the backlash is the fact that Ohio's kind of a swing state at back and forth or. In the past anyway between Republicans and Democrats. This was a state that Trump won in two thousand sixteen was not necessarily expected to win. That was a bit of a surprise. And he has a couple of times promising that his policies for bringing back factory job. This obviously flies in the face about. The president was quite upset about it posted on Twitter. A number of times Boston GM talking about getting rid of federal subsidies for some of its products and makers of the actually from Ohio also critical of the decision. Understand the white meat for GM sort of plan for the future. But at the same time, they don't want to see by a traditional business involving making cars that haven't. 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 can the president do that kind of thing that the president probably would not be able to do on its own on his own. What is coming into play here as there are subsidies for electric vehicles back a couple of years they were designed to lure American car buyers. If you're willing to buy electric vehicle, and depending on how much the Hickel electric as opposed to gasoline operated. You could get a tax credit of up to seventy five hundred dollars. That was limited to the I two hundred thousand vehicles accompanied sold in the US. Tesla has already passed that level. GM is close to it at last count. They were you know, upward of one hundred ninety thousand David like to extend that for the president. On proposed in the Senate that would do this. It's been bottled up in committee, so far, but you know, with enough pressure from electric lawmakers. There's a chance that could end up moving forward. Has opposition from the president. The divided congress. It'd be hard to get enough to really become a veto. Okay. They can't get Trump's backing, you know, about Bill would be even more trouble. One of the reactions. That's come up a couple of times, you mentioned in your story too. Is this whole idea the tax payers rescued GM right during the recession GM now? Well, you know, making a good bit of money now, obviously, the after the rescue happened the government Donald done some fifty billion dollars in two g under kind of prop it up, and they took a substantial sheriff at stocks for that. They sold stock after about five or six years. So we're talking twenty thirteen or so and. The cost about eleven billion dollars investment. So. Sort of grudge on the part of taxpayers. The part weight lawmakers representing tax payers involving that money and saying, well, it's not gonna 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 comedy is going to be kind of immigrants debt and do what it can to believe the economy, help workers, etc. Etc. The same backlash gets banks in the wake of the two thousand eight crisis. The exception that the banks paid back the amount of what the government invested in them. James James Langford business editor at the Washington Examiner. This.