On Monday, November 26th, 2018 the General Motors co. (GM) said they will cut 14,700 salaried workers as of December 2019 according to the USA today. This cut is 15% of there salaried workforce. This closes up to 7 factories in North America according to the Chicago Tribune. This is the first minor cut that the GM has made since the great recession, the great recession was in 2008 when the stock market crashed but not to bad. In case you do not know what the GM is... GM is the general motors company. It makes cars and sells them under names such as GMC Chevrolet Cadillac and bike.
This is obviously not good for the economy. The COE Mary Barra said, “to get in front of while the company is strong and the company is strong”. The GM, however, does not see the economic backlash from this, in the trade war between us china and Europe, this might raise the prices of imported vehicles. The GM, however, did not close any plants in China. President Trump urges GM to close a plant in China instead of Ohio. This is terrible for the people that the GM is firing. This is like the reason that the economy is so weak because there are not enough jobs these new cuts just prove that.
I emailed a corporate relations manager and he responded. I asked him for more information about the cuts and this is what he responded with: "As painful as this is, GM must make decisions to ensure the company’s future, and ensure we can continue to provide good manufacturing jobs here in the U.S. for years to come. You may have noticed the popularity of pickups and SUVs on the roads today. This in part is due to a shift that many consumers have made toward trucks and away from some types of car models – especially compact cars. As a result, the company will discontinue the production of some car models next year. At the same time, GM is investing in new technologies to expand in electric vehicles and introduce self-driving vehicles. To sum up, shifts are taking place in the market that unfortunately result in some types of products declining in demand, while others grow. And a big transformation is taking place that will expand new kinds of vehicles in the future."
This proves a point that the GM has not been doing as well in the last few months and this would be worse for our economy than the cuts and the GM plans to modernize their cars by as stated in the Email. One thing that I pick up in the email is that some cars they made were not doing good one of those being the Chevrolet Volt. This was one of there fuel-efficient cars. They are stoping the production of the volt and making more fuel heavy SUVs and pickup trucks. This the email stated is to preserve the future of the GM.
The GM’s cuts might hurt there business because people will not support the choices the GM made for multiple reasons and I see why but in the end this was to stop them from going out of business. That would hurt the economy more. I hope in the future that the GM will reopen the factories that they closed.
Story by Garrison Hunt