Trump says he's not happy about General Motors' decision to lose 14,700 jobs | The business



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General Motors has announced it will suspend production at five facilities in North America and cut 14,700 jobs as it deals with the deceleration of sedan sales and the impact of Donald Trump's rates.

More than 6,000 blue-collar jobs will be hit by GM's plans to stop production at a Canadian auto factory and two more in Ohio and Michigan. Two US transmission plants will also be shut down, casting doubt on the future of these plants.

The cuts will also include 15 percent of GM's 54,000 employee workforce, about 8,100 people, and 18,000 GM workers were asked to accept voluntary resignation.

Trump – who has won voters in many of the states affected by GM's decision to promise to save jobs – told reporters he was not satisfied with the decision. "We do not like it," he told reporters. "This country has done a lot for General Motors. Better get back to Ohio soon.

Mary Barra, GM's executive director, is expected to meet with White House economic adviser Larry Kudlow on Monday.

"We are taking this action now, while the company and the economy are strong to stay ahead of changes in market conditions," Barra said in a teleconference. GM's share price rose 5.5% in the news.

Automobile factories – Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly and Oshawa Assembly – build cars that sell slowly. Trump held a rally near the Lordstown factory in July and told workers not to sell their homes because "jobs are coming back."

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The issue will be addressed in talks with the United Auto Workers next year.

Cost pressures on GM and other auto companies and suppliers have increased as demand has declined for traditional sedans. The company also said tariffs on imported steel, imposed at the beginning of the year by the Trump government, cost $ 1 billion.

Michelle Krebs, an executive analyst at Autotrader, said Barra is "trying to overcome a potential crisis by making cuts now." She said a confluence of factors triggered GM's actions: a slowdown in China's major market and a potential recession in the US market; the dramatic shift from consumers of traditional cars to commercial vehicles; and the impact of tariffs and trade issues.

GM is poised to leave a assembly plant in Canada. Canadian union Unifor, which represents most unionized auto workers in Canada, said on Sunday it was told by GM that there would be no product allocated to the factory in Oshawa after December 2019.

Justin Trudeau, the prime minister of Canada, expressed his "deep disappointment" with the decision. He said on Twitter: "GM workers have been part of the heart and soul of Oshawa for generations – and we will do everything we can to help the families affected by this news rise again. Yesterday, I talked to GM's Mary Barra to express my deep disappointment at the closure. "

The largest US automaker employs about 2,500 union members in Oshawa, which produces the Chevrolet Impala and Cadillac XTS sedans. It also concludes the final assembly of the best-selling Silverado and Sierra pickups, shipped in Indiana.

GM has debated internally for months how to deal with the reduction in demand for automobiles, one person said, and the issue will surely reemerge when GM enters into contract negotiations next year with the UAW.

The company has begun what is expected to be a long and expensive transition to a new transportation model that encompasses electrified and automated vehicles, many of which will be shared rather than owned. GM signaled the latest belt tightening at the end of October, when it offered acquisitions to 50,000 salaried employees in North America.

Late US car sales saw several auto factories fall to just one shift, including the Detroit Hamtramck Assembly plant and the assembly plant in Lordstown, Ohio.

The rivals Ford and Fiat Chrysler have reduced production of US cars. Ford said in April that it planned to stop building nearly all cars in North America.

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