President Trump Rightly Tells General Motors and UAW to Get Their Act Together – Lordstown Ohio, Auto-Plant…

Calling attention to the brutally obvious is a key element to President Trump’s use of Twitter.  In this example President Trump (the business executive) highlights how GM is shutting an Ohio auto-plant at the same time multiple auto manufacturers are expanding operations in the U.S.

President Trump is 100% correct.  In just the past few months, specifically as an outcome of the USMCA, six auto companies have decided to massively expand U.S. operations and spend over $20 billion on auto-manufacturing investments in the U.S.

It makes no sense for an existing auto plant to sit idle.  Come to terms with the UAW; make a good deal that helps membership and incentivizes ownership; sell the facility to a new group expanding U.S. investment; retool, and get people back to work.   Consider:

  • Toyota –  $13 Billion Investment: Production capacity increases and building expansions at Toyota’s unit plants in Huntsville, Alabama; Buffalo, West Virginia; Troy, Missouri and Jackson, Tennessee. [SEE HERE]
  • Fiat Chrysler – $4.5 billion for a new assembly plant in Detroit and boosting production at five existing factories. Hiring 6,500 workers.  [SEE HERE]
  • Ford Motor Co – New expansion for 500 workers and investment of additional $1 billion in its Chicago assembly operations to help keep up with booming demand for sport and crossover-utility vehicles. [SEE HERE]
  • Volkswagen – New investment of $800 million by Volkswagen and the creation of 1,000 jobs in Hamilton County, Tennessee. [SEE HERE]
  • BMW – Reacting to changes (75% rule of origin) in the new USMCA, BMW announced exploration for a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said. [SEE HERE]

Those announcements are all this year.

It would appear one of the major problems for Lordstown, Ohio, workers is decision-making between GM leadership and UAW leadership that is centered on politics:

A political prism impacting decisions is especially annoying considering it was U.S. taxpayers who bailed out GM in 2009.

Like President Trump said about the blame game “I don’t care“.  In essence he’s calling out the political motivations behind GM CEO Mary Barra, and the insufferable UAW leadership who care about their own political power more than their workers.

It just doesn’t make sense to have an auto-plant idle, and an entire community of trained/skilled auto workers available, while multiple auto-companies are seeking to expand their operations.

The UAW needs to come to the table with a deal that works for everyone, and get the plant retooled and/or re-leased for a new operator and back on-line.

It was this interview earlier today that seemed to catch President Trump’s attention.  The typical labor union/Democrat politics just pours through the screen:

.

[Note to knuckle-headed UAW boss David Green: 75% of Nothing is NOTHING.  This is why you don’t have nice things.]

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This entry was posted in Auto Sector, Donald Trump, Election 2020, media bias, NAFTA, Professional Idiots, Trade Deal, Typical Prog Behavior, Uncategorized, US Treasury, USA, USMCA. Bookmark the permalink.

185 Responses to President Trump Rightly Tells General Motors and UAW to Get Their Act Together – Lordstown Ohio, Auto-Plant…

  1. Caius Lowell says:

    Mary Barra sounds like a friend of Obama’s…

    Liked by 1 person

  2. Maybe GM is waiting for another Obama to come along and rob all the bondholders once again.

    Liked by 3 people

  3. artlb1958 says:

    Lordstown makes the Chevy Cruze… It’s a nice little “smallish” sedan, as in car. Unfortunately that market segment has declined by over 50% in recent years as consumers have gravitated toward SUVs, “Crossovers” etc. Across the entire auto manufactoring sector conventional sedan sales are in the toilet. Dealers are sitting on 120 day plus inventories of these vehicle types. AND they’re the least profitable per unit in any auto makers line-up. This is pure consumer driven market forces at work. I live less than 15 miles from Lordstown. Over the last twenty years GM and the UAW have done double backflips trying to keep it open… Finally, it’s “luck” has run out. NE Ohio is/was ground zero for the rust belt; we here in Youngstown-Warren are located precisely half-way between Cleveland and Pittsburgh. While it’s not AS BAD as Detroit; the few young people there are, who can, leave at the first opportunity. There is NO housing market; a 3 BR, 2,5 Bath 2 car attached garage AND in-ground pool?? 135K and NO takers. Losing Lordstown WILL HURT. The GOOD NEWS is one of our remaining steel mills recently opened a pipe rolling facility and added 600 NON-UNION well paying jobs… God Bless Fracking. SO, we will survive, we will endure; but it’s the market that’s killed Lordstown; NOT GM…the UAW… and especially NOT Trump.

    Liked by 2 people

    • jbt says:

      Very interesting info. Thanks. 🙂
      So, Trump is correct that GM needs to re-tool or sell the facility to another auto maker. It appears they’re spread too thin and did not utilitze the bailout money responsibly.

      Liked by 2 people

    • Lionel Mandrake says:

      I live in Peru, and you see hundreds of Chevy Cruze and millions of others in its class. But the Chevys here are made in Brazil or China. So GM can’t export small cars to anywhere? Big markets in the third world.

      Liked by 3 people

      • SharkFL says:

        Thanks for the feedback from Peru. This is a very good point you make. GM certainly could place those cars all over the world if they were willing / able to export the cars. That seems to be a big part of this issue. Mary Barra either can’t or won’t support Trump.

        Like

    • The Demoney Slick says:

      I’m no expert but couldn’t they just retool and build something more popular?

      Liked by 3 people

    • Alligator Gar says:

      It’s pure market forces. When CAFE went away, the automaker no longer had to build little cars nobody wants to offset the trucks and SUV’s everybody wants. And, as a result of that, American jobs were lost. Jobs, I may point out, that were the children of federal regulation.

      Mr. Trump probably aught to look into a mirror before placing all of the blame on the auto maker for the lost jobs and shuttered plants. CAFE secured those Cruze jobs. Getting rid of CAFE, in large part, lost them,

      We can certainly argue whether or not CAFE was worth keeping around or if it were merely a fedgov overreach and the resulting pain of the lost jobs is worth it for the trimming of the regulation.

      That is the point of debate now, IMHO.

      Like

    • tonyE says:

      OK, so? Honda produces a lot of cars and engines in Marysville, Ohio. That’s just West of Columbus.

      The cars sell very well and the employees are well paid.

      Sure, they are not UAW and the management knows about car, not like GM’s “widget” management.

      The problem here is not the choice of vehicles per se, it’s the management at GM and the UAW. They all need to go.

      Liked by 1 person

  4. Chewbarkah says:

    Any car manufacturing operation in Ohio/Rust Belt is going to be UAW turf, and therefore not economically competitive with areas where UAW does not poison the well. Other than Ford’s, which of the new plants Sundance listed above will be UAW operations?

    Liked by 1 person

    • Perhaps it is time for residents of Ohio to look into becoming a Right To Work State. That means they don’t have to belong to a union to work. I was in Pittsburgh, PA and my husband worked for US Steel when the unions killed the steel industry. It was the steel workers union demanding more and more every year that priced themselves out. The mills shut down and China saw their opportunity and jumped right in. But the unions are the ones who gave China the steel business.

      Liked by 3 people

  5. Daniel says:

    I have to wonder who is going to believe this is anything other than ‘resistance’? One thing I always try to see is what the message(s) may be and who the targets audience of these messages may be. For example, we see things as obviously “something.” Meanwhile, a completely different group with their own interpretive biases will understand something completely different.

    I’ve long held that even the most absurd and transparently stupid things the resistance, the opposition, the establishment and/or the left have been doing are effective against their target audience. We know this because of the unprecedented emotional meltdown suffered by Democrat voters. They were absolutely convinced of the expected outcome because the media and others had absolutely convinced them of the outcome. They absorbed that reality model as part of their own personal identity. And when their entire reality was destroyed with a single election, they all lost their collectivist minds and many of them are still struggling to hold onto their prior version of reality and are still willing to believe ANYTHING which helps them to “not be wrong” in their beliefs. Their desperation causes them not to accept current reality.

    So in that little pocket of Trump voters, they are seeing other car makers are coming [back] into the USA in order to get/maintain access in the US markets and lots of jobs and workers working. But then GM and the UAW are trying to pretend they can’t get along because of Trump(!?). And this is where my current confusion begins.

    Just WHO are they trying to convince? The union membership all voted overwhelmingly for Trump and for very good reason. The unions endorsed “not Trump” with union funding. The members are unquestionably feeling very betrayed. Who is their target audience in this charade? That’s what I’m not seeing. I expect to see UAW membership revolting in some way pretty soon. The UAW is clearly not representing the interests of the workers.

    What am I missing? Sundance? Thoughts?

    Liked by 5 people

  6. Deplorable_Vespucciland says:

    They could revive the PONTIAC brand and start building some GM sports cars again like the Firebird Trans Am. Not everybody wants to drive a truck or SUV. Management’s lofty plan to manufacture some imaginary electric car there sometime in the future is nonsense.

    Liked by 1 person

  7. betseyross says:

    Mary Barra is the snake in the grass. Hillary’s friend, not necessarily Obama’s although the mess Obama created was getting fixed with Trump. Well, we can’t have any solutions that work for the people so in order to get back at Trump and make Ohio blue, little Mary was willing to shut down Lordstown because of her political reasons. Those poor people that worked at Lordstown have been pasted for years as it was a huge major employer in the area. Yougstown went for Trump in a big way in ’16. Mary is one mean, vindictive feminist and that is the only think I can say about her.

    Liked by 3 people

  8. sturmudgeon says:

    Well… what’s new? The Party that “cares” so much, really cares not at all… THAT’S the reality! Boggles the mind how slow some voters are, on the uptake.

    Liked by 2 people

  9. jjs says:

    government motors – run by government style bureaucrats just like in communist countries.

    Liked by 3 people

  10. Rose says:

    The workers should decertify the union. Get rid of the bums.

    Liked by 3 people

  11. powderdayrules says:

    Real private sector management would have long ago responded to market desires and would be producing products that were competitive. Real private sector management would have long ago dumped the UAW by moving production to non UAW territory. GM and Chrysler= Government Motors. Let them fail. The union workers could rebel against the UAW – like that would ever happen. Let the UAW/Government Motors (including Chrysler, which was bailed out TWICE) controlled areas of the country turn into the shitholes those voters deserve. Another car company would be crazy to try to compete in UAW territory – the unions and guvmotors management have dug their own grave. I have zero sympathy. F them.

    Like

    • Alligator Gar says:

      GM couldn’t ‘respond to market forces’ under CAFE. That is something that forced them to make the small cars. Now that Mr. Trump has gotten rid of CAFE, GM is free to respond to market forces. And people lost their job. We don’t need buggy whip makers any longer. Sorry, but they were redundant and excess to corporate needs and rendered so by market forces.

      Liked by 1 person

  12. If you think morose Mary Barra deserves $20 million a year, then you probably don’t know that German auto workers make $64 an hour on average, and GM at Lordstown currently pays recent hires $15.78 per hour. Under the 2015 agreement, workers with four or more years of experience will make the top $29 hourly wage within four years. Now, GM is pushing to hire temps at the lower rate and gwet rid of folks making that $29, which is why the UAW is fighting.
    You can make nearly $15.78 anywhere there is a $15 minimum wage. Auto factory work is difficult and dangerous, but GM knows it can open a plant in China and pay $8,000 a year wage under current U.S. VAT and tariff regulations..
    Meanwhile, German auto firms are the most profitable in the world and workers earn the highest wages. Sounds like the old USA.

    Like

    • tonyE says:

      Fire the GM and UAW management teams. Decertify the UAW. Invest in the plant, the workers and the product line. Tax 35% on GM cars imported into the US.

      There. Fixed.

      Liked by 1 person

  13. Chieftain says:

    I cannot imagine any sane auto maker wanting to buy in to Lordstown.
    This is good PR for Trump, but GM-UAW poisoned that Lordstown well decades ago.

    Liked by 2 people

  14. Garry McMahon says:

    The auto worker may be making $30/hr, but that is before union required benefits which usually add about 40% to the pay package. However the major excess cost are union work rules which can easily double the labor cost from non-union plants, where the rules usually are made with a balance between efficiency and worker safety, rather than nationally negotiated work rules. If management and union bosses are lazy, or politically motivated, then it is easier to shut down a facility than face the struggle to make the physical, mental and emotional changes needed to make it efficient again.

    Thus Mary Barra and David Green ‘s unwillingness yo negotiate so that the plant could stay open is a very low priority either of them.

    Liked by 2 people

  15. Coast says:

    GM makes good commercials, and nice looking vehicles, but with lousy components I’ll never buy one. Of all the vehicles in the corporate pool, they look like crap inside after only a year of use.

    Liked by 1 person

  16. Trump needs to take over the General Motors as we the people own it…they owe us. https://www.reuters.com/article/us-autos-gm-treasury-idusbrea3t0mr20140430

    Liked by 2 people

  17. People Get Rid of The union bums,

    Like

    • Chad C. Muilligan says:

      You cannot revitalize GM without giving the UAW the boot. Been there, lived that, for 15 years as a Tier One supplier. We grimly referred to the acronym as standing for “United Against Work”. A knock-on effect of the UAW’s self-serving obstructionism is that GM cannot retain high grade line and middle managers. Anybody with half a brain flees screaming into the wilderness in five years or less.

      My people were roughed up, spat upon, had cars keyed, our machines sabotaged, tools and parts stolen, and on-and-on. All to coerce us into using incompetent UAW “skilled trades” to do our installations. An installation at, say, Boeing or Lockheed could be done in two weeks. At GM it normally took six. GM management just rolled their eyes and said “do whatever you have to do”, (and then screamed bloody murder when they saw the bill). I’ll be retired ten years in April, but I still can’t get the bad taste out of my mouth.

      CLOSE LORDSTOWN and let ’em stew. They won’t even look for another job until every penny of unemployment, union benefits, “extended benefits” (you know it’ll happen), has been milked dry. (Somebody watch to see how many file for SS disability.) Let Honda buy the plant and install a 100% non-union work force, as in Marysville, for example. Would serve ’em right.

      Like

  18. Louis Genevie says:

    Shutting down this GM Ohio may have an economic motive, but the political ramifications for Trump 2020 cannot be missed. Trump needs to do more than just tweet or make a few phone calls. He needs to make sure these workers are taken care of. The ramifications are substantial.

    Liked by 1 person

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