Saturday , October 1 2022

Mr. Trump was upset that US carmaker no. 1 has fired tens of thousands of workers



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GM's announcement of the cuts has prompted Mr Trump to get angry and threatened GM with a political risk. (Source: Common Dreams)

GM's announcement of the cuts has prompted Mr Trump to get angry and threatened GM with a political risk. (Source: Common Dreams)

Explaining this move, General Motors (GM) said it was because it had to cut down on cheap models and cut off North American labor because the market was not as keen on it. with traditional gasoline vehicles. As a result, GM is preparing to transform its investments into electric vehicles and unmanned taxis.

The biggest restructuring since the bankruptcy of the company a decade ago marked the turning point for the automotive industry in North America.

GM's announcement promptly led US President Donald Trump to anger and threatened GM with many political risks.

Consequently, Mr Trump asked GM to make a new car in Ohio. In addition, he discussed with GM's CEO, Mary Barra, that he is not satisfied with the decision to cut production at a Ohio plant. Ohio is an important state in the presidential campaign of Trump.

"I believe in the near future, GM will launch a new line," said Trump, who has been trying to create more jobs for factory workers for nearly two years. .

In addition, GM and its competitors spend a lot of money on changing technology, addressing risks when US trade policies are getting worse and investors are reluctant to finance traditional products. companies.

"Industry is changing very quickly. These are the things we are trying to do to improve our core business," Barra told a press conference.

Immediately after announcing the decision, GM shares rose 7.8 percent to $ 37.97 in afternoon transactions.

"We are trying to determine the ability to meet market demand," Barra said.

GM also plans to cut total capital spending, even if it says it will double its investment in electric vehicles and electric cars over the next two years.

The cost of pressure on GM suppliers and other auto parts increased as demand for conventional sedans declined. GM said the import tax rate imposed by Trump earlier this year on China cost $ 1 billion.

Although Barra does not associate factory cuts and dismiss workers with tariff pressures, it is also said that commercial costs are one of the factors that GM faces when it comes to technology change and penetration. Greater field.

Hong Van (general)

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