Mike Duggan recalls these days to the thousands of families and hundreds of businesses were displaced to other neighborhoods of Detroit to open gap at the factory of General Motors (GM) in Hamtramck. “Up to six churches”, explains the mayor of the metropolis. Three decades later, the massive assembly plant in the backyard of the capital of the engine is one of the five that will cease production in the major adjustment of the company from the bankruptcy that was announced in the summer of 2009.
Those affected are close to than 14,300 employees, the 15% of the global template signature
There are manufactured currently the LaCrosse models of Buick and the old utility plug-in Volt from Chevrolet. Those two lines will end on 1 march. The 1 of July it will be on the same complex chains of assembly of the CT6 from Cadillac and Impala Chevrolet. It is not the only factory closes in Detroit. The production of transmissions in Warren will be the first of August.
The setting will affect also to the chain of assembly in Lordstown, Ohio, Chevy Cruze, an operations center in Baltimore, Maryland, and Oshawa, a plant that for several generations gave work to thousands of families in Ontario, Canada, in the suburbs of Toronto. In total, the affected are a few 14.300 employees of the company, the equivalent of 15% of the global template. Some are offered be transferred to other complexes where the production grows.
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Trump threat to General Motors, after announcing the closure of plants in the US, General Motors announces a restructuring that will affect the 15% of the workforce
The reviews are being very harsh. Terry Dittes, head of GM in the trade union United Auto Workers, called the decision “cruel”. To quote one of the “sacrifices” they had to make these same employees in the “darkest days” of the company during the recession and the money injected by the taxpayer to be able to reflotarla. “Now put profits ahead of working families,” she laments.
GM recorded a net profit of 2,500 million dollars (about 2,200 million euros) in the third quarter, after losing nearly 3,000 million dollars a year before by the charges associated with the sale of Opel to PSA group. The global revenue of the company grew 6% in the year to 35.800 billion. Despite this performance, the management justifies the setting with the fall in car sales, rising costs and the economic moderation.
“Put their profits ahead of working families,” says a trade unionist
Duggan shares that the decision is a real slap in the face to memory, to remember the bailout of GM a decade ago. That’s why he says that make you pineapple with the trade unions for face-planting. “We’re not going to surrender,” says the mayor. “We’re going to try to convince them to operate a modern plant in this area is possible,” he continues. Similar reactions are repeated by the other affected areas.
“saw No Betgaranti change,”
“Invested the money in the continuity,” says Larry Summers, Treasury secretary during the Clinton Administration, from 1999 to 2001. “In doing the same thing even if there was no demand. Their managers saw no change,” he adds. This caused the company to sink the debts while piling up the losses, and it became highly unproductive. Its president and ceo, Mary Barra, justifies that the transformation that began a year ago of its business model is to anticipate the next crisis. Bar will meet on Wednesday with senators from the States affected by the closures.
GM has already offered a plan of voluntary redundancy to 17.700 employees last October, before the announcement of the closings. Only chose voluntarily to 2,250 employees. These actions, argues the company, must be taken as the company and the economy are strong. “We need to make the movements preventive adequate to weather the hard times ahead”, insisting the management.
The cuts are seeking savings of 6,000 million dollars a year and to build cash to invest in “new growth opportunities”, as the electric car and the driving systems autonomous where new rivals such as Tesla point the way. “We cannot afford to wait to see what happens in the industry and react after”, reiterates the manufacturer of Detroit in the communication to the employees.
Ford Motor began in April the process to concentrate the 90% of the production capacity of pickup trucks, todocaminos and commercial vehicles. Are more profitable than passenger cars. It is something that did Fiat Chrysler. The democratic congressman Debbie Dingell understands the new reality facing the industry, but hopes that is not a smoke screen to export production outside of the USA.
“Nothing is closed in Mexico and China,” said Donald Trump, “the US saved GM and these are the thanks that we give.” The company is benefiting now from tax incentives. Democratic senator Sherrod Brown believes that the move reflects how far can you go “corporate greed”. “Frustrating”, values republican Rob Portman. Congressman Tim Ryan calls for that you investigate how GM spends billions saved in taxes, to know whether the dedicated to “inflate their profits.”
A hard blow for Trump
The layoffs announced by General Motors (GM) are joining democrats and republicans. But sat particularly badly to the president, Donald Trump. The race to the White House was driven precisely by the employees of the former industrial fabric that were left on the sidelines of the economic recovery. The decision of the giant of the car, therefore, is contrary to the promise of the republican president.
Michigan and Ohio were two of the key States where Trump won by surprise in the presidential elections. There he sold during the campaign that if he came to the White House would regain the greatness industrial USA had in the 1970s and 1980s. Your commercial policy, in your view, is designed to support the steel industry and the automotive industry. But the model past does not work with the new market forces.
The restructuring that is underway, the GM responds, however, to excess capacity throughout the industry and the changing trends in demand. It is estimated at one million vehicles of the brand that remains unsold. “Must do something”, values Larry Summers, who was secretary of the Treasury with the democrat Bill Clinton. Remember that the recession was not the factor that led to your bankruptcy.
