President Trump has roundly criticized General Motors CEO Mary Barra for her decision to kill almost 15,000 jobs by closing four US production plants.
He is going to hold a rally in Ohio today (March 20) in support of workers who have lost, or will lose their jobs. A plant in Lordstown, Ohio was recently closed. John Binder at Breitbart News reported:
This year, GM announced it would stop production at four of its U.S. plants, including Detroit-Hamtramck and Warren Transmission in Michigan, Lordstown Assembly in Ohio, and Baltimore Operations in Maryland. Trump initially blasted the decision, saying, “This country has done a lot for General Motors. They better get back to Ohio and soon.”
The production closures come after GM laid off about 1,500 American workers in Lordstown in 2018, while their Mexico production remains unaffected and production in China ramps up.
Trump is correct when he says, “This country has done a lot for General Motors”. After all Obama bailed out GM in 2009 with $50 billion taxpayer dollars and GM has not even paid back $11 billion of it.
Conservatives and Republicans warned Obama not to bail out GM, that the company would continue to make bad decisions with the easy government money and that GM needed to restructure itself significantly and get capital in the private markets.
But no. And GM’s biggest boondoggle was the Chevy Volt, the electric-car-turned-hybrid, which first came out in 2010 and is now ending production. GM lost billions on that deal, leading to the current crisis. Forbes magazine reported:
For the past decade, Chevrolet Volt has been General Motors’ moon shoot: a high-stakes, high-technology way to convince car buyers that it was serious about fuel economy. But in automotive terms, Volt looks like it’s been just as expensive as a moon shot, too.
In an in-depth report, Reuters calculates that GM is losing as much as $49,000, and possibly more, on every plug-in hybrid Volt that it sells. Reporters Bernie Woodall, Paul Lienert and Ben Klayman base the calculation on figures from automobile analysts, who’ve looked at the car’s selling price versus what it costs to manufacture each Volt.
The Volt was foisted on GM by environmentalists in the Democrat party with no regard for its economic viability, which turned out to be zero. In other words the destruction of tens of thousands of jobs and lives can again be partly or wholly attributed to environmentalism. If GM had not been bailed out by taxpayers private lenders certainly would have nixed the Volt before it even got off the drawing board. Breitbart News reports:
At the beginning of this year, GM executives began laying off 14,700 workers in the United States and Canada, with the majority of the layoffs concentrated in Michigan, Ohio, Maryland, Georgia, and Texas, including at least 3,300 American factory workers.
These layoffs included the mass layoff of at least 4,000 American workers in white-collar jobs for GM, many of whom were older and had worked at the corporation for more than two decades. Even in supporting industries, about 400 Americans are set to be laid off in the Lordstown, Ohio, region.
This is devastating. And president Trump is right to call out Barra. Question: Was Barra a “diversity” hire who was not qualified in the first place but picked in order to have a woman at the helm of GM? Let’s look into that, which could be yet another part of the problem coming from the Democrat left. President Trump said in three separate tweets:
Because the economy is so good, General Motors must get their Lordstown, Ohio, plant open, maybe in a different form or with a new owner, FAST! Toyota is investing 13.5 $Billion in U.S., others likewise. G.M. MUST ACT QUICKLY. Time is of the essence!
Democrat UAW Local 1112 President David Green ought to get his act together and produce. G.M. let our Country down, but other much better car companies are coming into the U.S. in droves. I want action on Lordstown fast. Stop complaining and get the job done! 3.8% Unemployment!
Just spoke to Mary Barra, CEO of General Motors about the Lordstown Ohio plant. I am not happy that it is closed when everything else in our Country is BOOMING. I asked her to sell it or do something quickly. She blamed the UAW Union — I don’t care, I just want it open!
The United Auto Workers, also allied with the Democrats, are certainly a significant part of the problem. Labor unions have destroyed or thwarted the creation of millions of jobs and harmed major companies and industries since the 1950s. They destroyed the Nikitas3.com hometown in Massachusetts by driving out the major employer, General Electric, with decades of strikes, violence and outrageous wage demands.
President Trump does not want to see the GM plants closed and he is going to campaign in the crucial electoral states of Ohio and Michigan for his 2020 re-election in favor of the workers. This is going to draw union members in those states, and nationwide, to Trump.
If a Democrat were doing this same thing the Fake News media would be wildly supportive. But since it is Trump they will be silent.
Labor unions have typically voted Democrat but that always has come on orders from the bosses. The rank-and-file often votes Republican and when Trump makes his case he is going to get strong support from the rank-and-file. This is how he won Ohio and Michigan in 2016.
This is all part of Trump’s America First strategy which Democrats oppose because it is a Trump idea and because it contravenes the Democrat strategy of globalism and left-wing, government-allied corporate power (GM, Google, Facebook, Wall Street, etc.).
For decades political leaders in both parties have stood by and watched American manufacturing jobs disappear to countries like Mexico and China with their cheap labor. No politicians seemed to want to point out the ultimate ramifications of this jobs outflow, as if it were inevitable.
President Trump has been talking about this problem for many years, even as a private citizen. Now he is in the proverbial driver’s seat and he is going to go to Michigan and Ohio and explain to the workers how he is standing up for them. This is a very effective re-election strategy.
Wisconsin Jobs Bonanza is Still Coming
The Daily Caller reported:
Wisconsin manufacturing facility Foxconn Technology Group announced Monday that it will open a new $10 billion plant by 2020 after talks with President Donald Trump.
Following his visit to the White House on Feb. 1, Dr. Louis Woo, special assistant to Foxconn CEO Terry Gou, said the company plans to begin production at its new plant by the 4th quarter of 2020, Reuters reports. Construction for the plant is likely to begin over the summer.
“Our commitment, from day one, has been to establish a winning formula for Foxconn and for Wisconsin,” Woo announced. “We continue to expand our presence around the state, create jobs and deepen our partnerships while innovating and adapting to meet changing market needs.”
Trump tweeted after his February meeting with Gou and Woo, “Great news on Foxconn in Wisconsin after my conversation with Terry Gou!”
… Wisconsin offered a nearly $4 billion incentive package in the form of tax and local tax credits in 2017 for the Taiwan-based group to move to the state and hire 13,000 people.
This plant was originally announced in 2017 as a result of efforts by president Trump and Wisconsin Republican governor Scott Walker. But the project was threatened when the market foundered for the original product (Generation 10 LCD screens) that was to be made there. Concern arose that the plant would be canceled. But that won’t happen. The Daily Caller continued:
(Foxconn) specializes in creating liquid crystal display (LCD) screens, which are used for devices such as phones, tablets and more. The new facility is expected to be a “Generation 6” factory, meaning it will be able to create screens ranging in size from that of an iPhone to a television.
It was initially speculated that the facility would be “Generation 10,” meaning it would be able to create screens as large as up to 11 ft. After Friday’s meeting with the president, however, Woo said Foxconn will continue with plans for the smaller facility.