Today, America’s largest automaker—General Motors (GM)—announced that it’s going to realign its manufacturing capacity, reorganize its global product development staffs, and cut its salaried workforce. The company called these measures “proactive steps to improve overall business performance” in a press release on Monday.
Let’s take a look at why GM’s latest move might not go over well with President Donald Trump.
Trump might not be pleased
Four out of five plants that will be affected by GM’s latest decision are in the United States:
- Detroit-Hamtramck Assembly in Detroit
- Lordstown Assembly in Warren, Ohio
- Baltimore Operations in White Marsh, Maryland
- Warren Transmission Operations in Warren, Michigan
GM also plans to shut down production at its Oshawa assembly plant in Ontario, Canada, in 2019.
Since his presidential campaign, Trump has repeatedly highlighted the importance of increasing jobs in the auto industry to improve auto workers’ quality of life. GM’s latest move should lead to the lay-off of “about 14,700 factory and white-collar workers in North America,” CBS News reported. The majority of these jobs being taken away from Americans is likely to cause a significant blow to US auto workers.
While GM plans to double the “resources allocated to electric and autonomous vehicle programs,” its move to shut down four US plants could hurt auto employees who aren’t qualified to build electric or autonomous vehicles.