GM Job Cuts: Trump criticizes automaker for huge lay-offs
Updated 11:33, 30-Nov-2018
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US President Donald Trump has criticized GM for its decision to cut thousands of jobs to save billions of dollars. The US car maker announced the lay-offs despite a booming economy. As Owen Fairclough reports, the global trade war started by the U.S president hasn't helped.
OWEN FAIRCLOUGH WHITE MARSH, MARYLAND "Five months ago GM warned the global trade war and specifically tariffs on metal imports into the U.S. could lead to job cuts. And so, the hammer has fallen. The future of 300 or so workers at this production facility outside Baltimore in Maryland is now at stake because GM says it has no plans to continue production beyond next year."
But that's just a fraction of around 14,000 employees due to be laid off by the number one U.S. automaker to save six billion dollars by 2020. GM didn't blame tariffs specifically but says higher trade costs - partly driven up by steep tariffs on components - contributed to its decision to stop production at four U.S sites and one in Canada. That didn't please U.S. President Donald Trump, who's spent much of this year locked in a trade war with key partners, while claiming he'll protect American jobs.
DONALD TRUMP US PRESIDENT "We have a lot of pressure on them. You have senators. You have a lot of other people- a lot of pressure. They say the Chevy Cruze is not selling well. I say, 'Well, then get somebody--, get a car that is selling well and put it back in.'"
The Chevy Cruze is one of a handful of models that GM will discontinue to focus on better selling sports utility vehicles and pick-ups, as well as investing in electric and self-driving models. Union officials say they'll challenge the biggest restructuring at GM since it went bankrupt in the financial crisis ten years ago. Owen Fairclough, CGTN, Maryland.