The automotive industry is in the process of remaking itself thanks to the dawn of autonomous vehicles and battery-operated cars and trucks. General Motors decided to close four U.S. factories in order to reposition itself in the industry. The Lordstown, Ohio factory closed recently, and many of the more than 1,400 factory workers had to find other places to work. According to GM, more than 1,000 of those workers got jobs in other GM factories. Those factories will continue to produce future GM vehicles. And the other workers have job offers, and those offers are still on the table.
General Motors CEO Mary Barra has been a Trump tweet target ever since the company announced closing the factories last year. Mr. Trump takes the factory closing personally. He based his election campaign on bringing jobs back to the United States, and that hasn’t happened. GM is a big target for Trump. He wants to show his voter base he can bully the big guys like GM and get away with it. So in one of his weekend tweets titrates Trump told Barra she needs to sell the factory or do something else with it because the closing lets American workers down.
Mr. Trump also tweeted Barra should take a page out of Toyota’s handbook because the Japanese automaker will make a $750 million investment in its five U.S. factories. That move will add 600 jobs.
The General Motors plan to close four U.S. factories is part of their global restructuring plant. GM wants to reduce its workforce by 15 percent thanks to the onslaught of AI and the change in consumer auto demands. Sedans are a thing of the past and SUVs and trucks are the new rage across the globe. GM is also in the process of closing its Canadian factory.
Mary Barra wasn’t happy about Trump’s attempt to tell General Motors what to do. Even though Trump said Barra blamed the UAW Union for the closure, Barra said that isn’t true.
According to the terms of the UAW-General Motors agreement, the future of the closed GM factories rests in the hands of GM and the UAW, not in Trump’s hands. According to a spokesperson for the UAW, the union will do everything it can to keep the plants open if keeping them open makes good business sense. But GM knows Trump will continue to tweet until GM does something with those factories