GM, Stephanie Gm, United States discussed on Larry Elder
Welcome back to the town hall review. I'm Hugh Hewitt. What are the key factors in president? Trump's two thousand sixteen election victory was the working class vote for him. Those voters came out in large numbers from what used to be called the rust belt places like Lordstown, Ohio right next to my hometown of Warren, Ohio and Lordstown the primary employer. General Motors were GM's Chevy Cruz. Passenger car is a symbol despite government funding in the billions, maybe close to fifty billion in the form of bailouts and tax incentives. Bankruptcy financing GM just announced closures that will impact nearly fifteen thousand workers and shudder Lordstown is GM lacking in gratefulness to the government, and the citizens the United States, I turned to my friend and colleague it NS NBC business. Reporter Stephanie rule. We start our conversation with a clip from Trump economic adviser. Larry cudlow. I'm Mary Barra yesterday. And we had a lengthy conversation about the lay offs the caused the layoffs. It's a great disappointment. Obviously, the president indicated his own disappointment. He believes as frankly, the prime minister of Canada Trudeau believes that the US NCA deal. It was a great help. To the automobile industry and to auto workers. And by the way, they made those statements separately and yet. GM comes in right after the deal, by the way that deal will be signed in Argentina. With the US and Canadian. So there's great disappointment. There. There's disappointment that it seems like GM would rather build. It's electric cars in China rather than the United States is Larry cudlow voicing. What I believe on Hugh Hewitt in the relief factor dot com studio, but I'm a Homer Lordstown is where I grew up. I know most of the people that worked at that play my entire life. I went to school with their kids there. My teachers would work there in the summer. Stephanie GM got thirteen billion dollars in tarp assistance. They got thirty three billion dollars debtor-in-possession financing. They got a jammed out on their bondholders. And then they put the knife in the back of Lordstown am I right to be angry? You're right to be angry and frustrated, but here's the issue. Government Mary bars job. And I'm not saying she's doing a good job or a bad job. But her job is to optimize the operations of her company is to get as many people to buy jam cars as possible and to do well by shareholders who yes, you would think since they were rescued by the government since they get the amount of support. They do that they got that huge tax cuts. They would be doing better than this and not have cuts that would be damaging devastating to those cities. That's not the case. And when the president gave that massive tax cuts. There wasn't a caveat. You must do this. You must do that isn't working for the company. We are living in a free market. This is what they are allowed to do. Why is responsible for all those people when they go that fast rate in Detroit in nineteen eighty government? He's eminent domain KOMO down house and school. Whole town. So here we are forty years later won't be able to to sell. There will be nothing there whose responsibility is it to fix that. Makes that announcement on the stock goes up, Mary Barra. We don't know what her fate is. But even if she's doing poorly loses her job. We'll get a great package to leave and no pay more money for CEO CEO pay and worker pay has never been greater and that worker is suffering. This flavor capitalism is the perfect example, it ain't working. Well, I generally I believe in the free market, and it raises everyone out of poverty, but if a company becomes dependent upon the government for their survival, and then they turn around and bite the hand that feeds them. Here's what here's how the market will respond. I don't think people will buy GM trucks and SUV's Stephanie. I think they will be mad at GM for closing their signal plant in Lordstown. I think they will simply reject GM products. That is such a horrific decision. Not to recognize the real world consequences like the first man movie, they left the planning of the flag on the moon, the movie tank, if you GM bites the hand that had feted in the crisis. American consumers are going to respond like American consumers. Screw you. And that's right. I just don't know that that GM had had. How much of a choice to make? If those factories are failing. If those cars aren't selling. This is about a scaled business they failed in terms of business strategy. Now, this is the decisions they're making they could have a huge blowback in terms of people who don't want to buy jam vehicles. That's an absolute consequence. But as far as Mary Barra had to do technically she's also load into the government. And she doesn't oh President Trump anything. He's in a bit of the situation because he said in good faith to all those people in car country. You will not have to sell your home. You. We're going to bring us factories back. Unfortunately, realizing he doesn't have control of that. But but GM screwed not just Trump screwed Obama and Bush all that deals with three presidents all of them had deals with GM and GM if that is their level of leadership, then there is no new GM. It's as bad as. A separate conversation is. Should have different management.