The GM announcement of the cuts stimulates Mr Trump into anger and threatens GM with political risk. (Source: Common Dreams)
In explaining the move, General Motors (GM) said it was because he had to cut production of cheap models and cut his North American workforce because the market was not so keen on it. with traditional gasoline vehicles. Accordingly, GM is preparing to convert its investments to unmanned electric vehicles and taxis.
The biggest restructuring since the company's bankruptcy a decade ago indicated the turning point for the North American Automobile industry.
The GM announcement immediately led US President Donald Trump to anger and threatens GM with many political risks.
Accordingly, Mr. Trump to GM made a new car in Ohio. In addition, he had been talking with Chief Executive of GM Mary Barra who was not satisfied with the decision to cut production in a plant in Ohio. Ohio is an important state in the Trump presidential campaign.
"I'll totally 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 almost two years. .
In addition, GM and competitors spend a lot of money to shift technology, tackle risks when US trade policies are tightening and investors are reluctant to fund traditional products. airline.
"The industry is changing very quickly. These are the things we are trying to do to improve our core business," said Bar at a news conference.
Immediately after the decision was published, GM shares rose 7.8% to $ 37.97 when trading in the afternoon.
"We're trying to determine the ability to meet market demand," said Barra.
GM also plans to cut overall capital expenditure, even if it says that it will double its investment in electric and drones vehicles in the next two years.
Cost pressures on GM suppliers and other auto parts have increased as the demand for traditional sedatives has dropped. GM said that the import tax rate set by the Trump administration earlier this year on China meant it cost $ 1 billion.
Although Bar does not connect factory cuts and rejects employees with tariff pressures, it also says that trade costs are one of the factors that GM faces in terms of changing and penetrating technology. Larger area
Hong Van YSynthesis)