Trump Tells GM to Shut ‘Plant in China or Mexico’ Instead of Ohio

Ivan Pentchoukov
By Ivan Pentchoukov
March 18, 2019Politics
share
Trump Tells GM to Shut ‘Plant in China or Mexico’ Instead of Ohio
President Donald Trump shakes hands with General Motors CEO Mary Barra prior to a meeting with automobile industry leaders in the Roosevelt Room of the White House in Washington, on Jan. 24, 2017. (Saul Loeb/AFP/Getty Images)

President Donald Trump ratcheted up his criticism of General Motors on March 18 over the company’s plan to close a plant in Lordstown, Ohio.

In addition to his prior request that the automaker keep the Lordstown factory open or sell it to a company that would, the president said GM should consider closing a “plant in China or Mexico,” where the company invested heavily prior to Trump taking office.

“General Motors and the UAW are going to start ‘talks’ in September/October,” Trump wrote on Twitter, referring to the United Auto Workers union, which is negotiating with GM.

“Why wait, start [the talks] now! I want jobs to stay in the U.S.A. and want Lordstown (Ohio), in one of the best economies in our history, opened or sold to a company who will open it up fast!” the president continued. “Car companies are all coming back to the U.S. So is everyone else. We now have the best Economy in the World, the envy of all. Get that big, beautiful plant in Ohio open now.”

GM issued a statement March 17, saying that the future of the Lordstown facility will be resolved between GM and the UAW. The carmaker said it has “opportunities available for virtually all impacted employees” at plants that may close.

The company’s March 17 statement followed Trump’s criticism the same evening. The president said on Twitter that he had spoken to GM Chief Executive Mary Barra about the planned closure of the Ohio si, even though the economy is “booming.”

The president’s call with Barra followed his initial call for the company to act “fast” to keep the plant open or look for a new owner. Trump pointed out that Toyota is investing billions in the United States while the economy is doing well.

“MUST ACT QUICKLY,” Trump wrote on Twitter. “Time is of the essence!”

Mary Barra was on a list of potential candidates to run as a vice president for Hillary Clinton, according to emails hacked from Clinton-campaign chair John Podesta and released by WikiLeaks. It is unclear if she was interested in the role.

United Auto Workers endorsed Hillary Clinton for president in 2016. The union discounted Trump after he advised automakers to run a tough bargain with the unions.

United Auto Workers is one of the richest unions in the United States with more than 1 million active and retired worker members.

GM’s plant in Lordstown has cut two of the three production shifts since 2017, eliminating 3,000 jobs, citing the declining sales of compact cars in favor of SUVs. In November last year, the company announced the planned closing of the Lordstown and four other plants and the layoffs of 15,000 workers.

Chevrolet Lordstown
A banner depicting the Chevrolet Cruze model vehicle is displayed at the General Motors’ Lordstown plant, in Lordstown, Ohio. On Nov. 27, 2018. (John Minchillo/AP Photo)

The plant stopped production on March 6. The plant is the first of five GM plants slated to close this year. The Lordstown was idle as the company determined its future, resulting in the loss of around 1,500 jobs.GM noted that over 400 Lordstown employees have accepted offers at other GM locations, and it reiterated that jobs are available at other assembly plants for anyone willing to relocate to other states.

The 6.3-million-square foot Lordstown assembly complex has manufactured more than 16 million vehicles since it opened in 1966, including nearly 2 million Chevrolet Cruze cars since 2010.

Unions are one of the main culprits for the colossal loss of manufacturing jobs in the United States before Trump took office. While early unions helped broker deals between workers and owners, most were eventually infiltrated and co-opted by far-left and communist elements.

CHEVROLET
An auto worker takes a picture of the first Chevrolet Cruze compact sedan to come off the assembly line at a ceremony inside the GM factory in Lordstown, Ohio. On Sept. 8, 2010. (AP Photo/Amy Sancetta)

Under the premise of improving working conditions, the unions have inflated manufacturing costs. A study by the Heritage Foundation showed that the labor costs imposed by unions made it hard for American carmakers to compete with Japanese brands.

“Unions function as labor cartels, restricting the number of workers in a company or industry to drive up the remaining workers’ wages,” wrote James Sherk a research fellow at the Heritage Foundation, wrote in a summary of the study. “Over time, unions destroy jobs in the companies they organize and have the same effect on business investment as does a 33 percentage point corporate income tax increase.”

Reuters contributed to this report.

From The Epoch Times

ntd newsletter icon
Sign up for NTD Daily
What you need to know, summarized in one email.
Stay informed with accurate news you can trust.
By registering for the newsletter, you agree to the Privacy Policy.
Comments