8 votes

GM to slash jobs and production, cancel some car models

5 comments

  1. [5]
    Pilgrim
    Link
    I'm not sure it's fair to label this "tariff" as the article states that tariffs were not really at issue here: I'll admit, it's the first thing I thought of though.

    I'm not sure it's fair to label this "tariff" as the article states that tariffs were not really at issue here:

    Barra did not link Monday’s cuts to tariff pressures, but said trade costs are among the “headwinds” GM faces as it deals with broader technology change and market shifts.

    I'll admit, it's the first thing I thought of though.

    4 votes
    1. [4]
      dubteedub
      Link Parent
      Yeah, while Mary Barra tried to downplay the steel and aluminum tariffs in this piece, I think the link is pretty undeniable. The preceding sentence to the quote you linked here even says: There...

      Yeah, while Mary Barra tried to downplay the steel and aluminum tariffs in this piece, I think the link is pretty undeniable. The preceding sentence to the quote you linked here even says:

      The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.

      There are a ton of other sources that are linking GM's financial troubles to the tariffs today as well.

      Michelle Krebs, an executive analyst at Autotrader, said Barra was “trying to get ahead of a potential crisis by making cuts now”. She said a confluence of factors had triggered GM’s actions: a downturn in the important China market and a potential downturn in the North American market; the dramatic shift by consumers from traditional cars to utility vehicles; and the impact of tariffs and trade issues.

      The companies have also paid a price for the tariff battle that Mr. Trump set in motion. In June G.M. slashed its profit outlook for the year because tariffs on steel were driving up its costs. The company does not import a great deal of steel into the United States, but the increased demand for domestic steel has raised prices.

      Even back earlier this summer they said explicitly that the Trump tariffs were likely to force U.S. job cuts.

      General Motors warned Friday that if President Trump pushed ahead with another wave of tariffs, the move could backfire, leading to “less investment, fewer jobs and lower wages” for its employees.

      The automaker said that the president’s threat to impose tariffs on imports of cars and car parts — along with an earlier spate of penalties — could drive vehicle prices up by thousands of dollars. The “hardest hit” cars, General Motors said in comments submitted to the Commerce Department, are likely to be the ones bought by consumers who can least afford an increase. Demand would suffer and production would slow, all of which “could lead to a smaller G.M.”

      2 votes
      1. [3]
        Pilgrim
        Link Parent
        Sure that's fair. I'm not defending the tariffs at all, I was just looking for that same connection and the article seemed to refute it. If you're seeing other sources reference the link, or...

        Sure that's fair. I'm not defending the tariffs at all, I was just looking for that same connection and the article seemed to refute it. If you're seeing other sources reference the link, or discussing how GM is getting out ahead of tariffs, then that's cool :)

        3 votes
        1. [2]
          dubteedub
          (edited )
          Link Parent
          Looks to me like Barra was trying to avoid exactly what just happened with President Trump by downplaying the effect of the tariffs at this point. Trump blasts GM over Ohio plant closure

          Looks to me like Barra was trying to avoid exactly what just happened with President Trump by downplaying the effect of the tariffs at this point.

          2 votes
          1. Pilgrim
            Link Parent
            I would as well. Can you imagine the uproar if some other president ever called on a company directly like that?

            I would as well. Can you imagine the uproar if some other president ever called on a company directly like that?

            2 votes