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After Losing $1 Billion to Tariffs, General Motors Announces 14,000 Layoffs

Trump's rally promises won't happen because of Trump's trade policies

Kris Tripplaar/Sipa USA/NewscomKris Tripplaar/Sipa USA/NewscomSpeaking to a cheering crowd in Youngstown, Ohio, in July of last year, President Donald Trump promised more jobs would soon be flowing to the blue-collar city.

"Let me tell you folks in Ohio and in this area, don't sell your house," Trump said at the time, to wild applause "We're going to get those jobs coming back, and we're going to fill up those factories or rip them down and build brand-new ones. It's going to happen."

Months later, though, Trump imposed new tariffs on imported steel and aluminum that increased prices for many American manufacturers, including carmakers. He followed those tariffs with others targeting Chinese-made goods, including parts used specifically in the manufacturing of automobiles. General Motors, in July, said Trump's tariffs would cost it more than $1 billion over a full year and the company's chief financial officer told Reuters that GM would deal with those added costs by "negotiating price reductions with suppliers, raising prices on more popular models, and cost cutting."

The cost-cutting happened on Monday, when GM announced that it would eliminate about 14,000 jobs in North America and could close five manufacturing plants. Alongside two plants in Michigan, one in Maryland, and one in Ontario, Canada, GM said one of the plants targeted to be closed—or, um, "unallocated" in the awful PR-jargon used by GM in the announcement—is just outside of Youngstown, Ohio.

One could argue that it's not a direct line from Trump's tariffs to GM's announcement Monday. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the Ohio plant, and an overall strategic shift towards more popular crossover and SUV models.

That may have played a role in the decision to lay off what amounts to 8 percent of GM's global workforce. The layoffs will hit 8,000 white-collar employees and at least 5,900 blue-collar workers.

Still, the added cost imposed by the tariffs is surely a factor. As Scott Lincicome, a trade attorney and senior fellow at the Cato Institute, pointed out on Twitter, that $1 billion could have paid for a years' salary for 24,000 assembly line workers (who make an average salary of $41,000).

If nothing else, losing $1 billion to higher import taxes may have forced GM to take more dramatic steps more quickly than otherwise would have.

It's also a reason why the company is unlikely to take Trump's advice, offered Monday afternoon, to replace production of the Cruze with something else in Ohio.

Trump told The Wall Street Journal that he spoke with GM CEO Mary Barra on Monday and told her that GM "better damn well open a new plant there pretty quickly."

But as long as the tariffs remain in place, GM and other American automakers have little incentive to expand production and every incentive to find new supply chains and cost-cutting strategies to avoid the import taxes. All the threats from the White House won't change the economic landscape that the Trump administration has helped create, one that is rockier than ever for American manufacturers and the people they employ.

Photo Credit: Kris Tripplaar/Sipa USA/Newscom

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  • Texasmotiv||

    Whoops! Who could have seen that coming?

  • Remember to keep it all polit||

    Trumpistas positively bragged about the reverse. Whoops!

  • People who know your history||

    Shouldn't be hard to find that quote then.

  • ThomasD||

    It's noon somewhere. Clearly that is the fault of tariffs.

    Maybe, just maybe these cuts have more to do with GM looking to stop making cars that nobody is buying - e.g. mid level sedans.

    They are doing exactly what Ford has already done.

    Oppose tariffs all you want, but tariffs have nothing to do with this. Reason's shameless attempts to pimp this storyline only serves to show how weak their actual arguments are. It reeks of desperation.

  • Remember to keep it all polit||

    You think like the typical socialist. GM should just eat that $1B on tariffs. Just suck it up. Tough it out. Fuck the share holders and share price.

    That $1B in tariffs had nothing to do with losing 14,000 jobs. Nothing to see here, folks. Move along.

  • Nardz||

    I'm sure the GM spokesman was being completely honest about tariffs costing them $1billion, because a corporate PR guy would never say something like that to shift blame away from a company making crappy cars.

  • Last of the Shitlords||

    Commit suicide Hihn. You piece of shit.

  • Wise Old Fool||

    Their cars are fine. My GM truck has 250K miles and still going strong and I haven't done anything to it outside of regular maintenance (brakes, tires, filters, oil, belt)

  • Red Rocks White Privilege||

    Their cars are fine. My GM truck

    A GM car is not a GM truck.

    Which is beside the point, because the factories that are losing the jobs are ALL sedans. Which has very little to do with the tariffs, and a lot more to do with the fact that GM and Ford's sedan sales consistently get their ass kicked by Honda and Toyota. Even with fleet sales, Ford and GM can't come close to what those two sell, and entire segment as a whole is getting its ass kicked.

  • ThomasD||

    And, if this was really an issue of tariffs decreasing profitability then you'd expect to see changes in truck production as well.

    But you don't.

    Not that fact have anything to do with this discussion.

  • creefer||

    Trucks are more profitable than cars. So any company would choose to eliminate its low profit vehicle first.

    Chew on those facts. Also, read the article. The author makes the exact point you did.

  • MJBinAL||

    Red Rocks is correct

    These plants were running at low capacity for the last several years, long before any tariffs. The problem is that consumer taste has been consistently trending away from passenger cars to pickups and SUVs.

    Ford announced they were discontinuing most passenger cars (far more extensive cuts that GM) a year ago ... ALSO way before the tariffs.

    Notice that GM is not cutting production on Trucks and SUVs that use MORE steel. This GM move obviously has nothing to do with the tariffs and everything with making products that consumers want.

    And yes, GM is making some excellent products. I love my Suburban with the engine than goes from 8 cylinders to 4 on the highway and gets excellent fuel mileage.

  • SimonP||

    Unlike Trump, a publicly-traded company like GM is legally prohibited from lying about its financial situation. That's likely the only reason we're aware of the business-detrimental effects of Trump's trade wars, in the first place; I'm sure these companies would love to avoid his ire by saying his farts smell like roses.

  • Red Rocks White Privilege||

    Not a surprise the Simple SimonP apparently thinks this is Trump's fault too.

  • Last of the Shitlords||

    I'm. It sure Simon can tie his own shoes. So his analysis means very little. He should focus on being less of a drooling idiot.

  • MJBinAL||

    Horseshit.

    GM is free to make statements like this with impunity. Statements like this are OPINIONS not facts. GM (just like Ford) has not made money on passenger cars in 5 years. GM is STILL keeping more passenger car production than Ford plans .... and this is probably a poor business decision.

  • Last of the Shitlords||

    GM also got tens of billions of dollars of taxpayer money for free. So basically Obama gave them our money so they could shift production overseas and shutter domestic manufacturing.

    But Eric says it's all Trumps fault, because tariffs.

  • JesseAz||

    You believe that GMs projections are real and it isn't the two failed lines of electric motors that cost them the money to end the layoffs?!? Wow, you really are naive.

    If GM said they'd make 5 billion from the sales of the product of the cruise volt, would you take that as gospel too? Because that's what the claim was when Obama was making it (could have just been a few billion, but believe it was close to 5).

    GM didn't actually prove the 1 billion was from tariffs, that was their press release. The layoffs are in response to two car lines being discontinued, those are facts. You believe the former and ignore the latter. You're an idiot.

  • Rev. Arthur L. Kirkland||

    It is always amusing to watch birthers, science deniers, and people who believe fairy tales are true insist on exacting standards of evidence.

    Carry on, clingers. So far as your betters permit bigots to do anything.

  • Last of the Shitlords||

    At least he understands how auto manufacturing works you faggoty loser.

  • MJBinAL||

    Not just auto manufacturing, but manufacturing in general. It is really tough to make a profit selling products that most people don't want in any industry. Even after the shutdowns and layoffs, GM is going to have excess capacity in passenger cars that will be a drag on profits.

  • Last of the Shitlords||

    GM is just lazy about making a some of their products.

    *. Their interiors tend to be lacking relative to the co petition in each class.
    * GM is short sighted in a long term market. See their ouster of former Audi exec Johan de Nysschen at Cadillac.
    *. GM needs to build better cars. The Cruze is just not that co oetitive with cars like the Civic and the Corolla. That's a GM problem.

    The company also needs fresh managements. Too many execs left over form when GM was letting people die by keeping their mouths shut during the ignition switch scandal. Small wonder they're making the decisions they are now.

  • CE||

    Did they add 14,000 jobs after a billion dollars in tax cuts?

  • MJBinAL||

    Nope, hard to hire when your products are not selling.

  • Last of the Shitlords||

    Amd GM still being forced to'ive with their union contracts and pension plans by Obama, who hijacked what should have been a legal chapter 11 bankruptcy proceeding to pay off his union supporters didn't have anything to do with it. Nor do Obama's EPA regulations which forced GM to build cars that were not in demand.

    This is Obama's fault. Goddamn Obama, and goddamn the progressives. Every one of them a traitor to their core.

  • ravenshrike||

    Might have a wee bit more to do with the 26% year to year fall off in sales for 2018. This on top of the 32% drop in sales in 2017 from its height in 2014.

  • JesseAz||

    The two lines that GM stopped are the chevy cruze and the chevy volt. Neither were selling (both hawked by Obama as the wave of the future). But instead of it being the fault of a bad decision to create product nobody wanted to buy... it's the tariffs fault. Reason doesn't even try some days.

  • ThomasD||

    Nor would they ever note that Obama's massive bailout has failed.

  • ||

    Actually, there was a time when Reason was really good about reporting on this. Their partisanship and overall quality has changed significantly since then.

  • MJBinAL||

    Yep, not sure why, but Reason continues to migrate toward becoming Huffington Post Lite.

  • Last of the Shitlords||

    I'm sure the writers here dream of greener pastures.

  • ||

    Neither were selling (both hawked by Obama as the wave of the future).

    Hocked, subsidized, and favorably regulated.

    Keep in mind, this is the same GM that was 61% owned by the Obama Administration in 2011 when he announced several billion in EV subsidies and grants. Before liquidating the shares at a $10B loss in 2013.

  • CE||

    They did say "after", not "because of" the tariffs.

  • MJBinAL||

    Good Point.

  • ||

    They are doing exactly what Ford has already done.

    And it's actually really shitty 'fake news' in this regard. Ford announced this and got trounced for 'abandoning Americans at the market-entry level'.

    GM has two lines that were effectively propped up by the bailout, subsidies, and emissions regulations and, now that it can afford to drop the lines, is just following the lead.

    Boehm, the dumbshit, is just upset that Americans aren't buying and driving the cars he thinks they should buy and needs to blame someone for it.

  • JFree||

    This 100%. This is entirely about the new CAFE standards not tariffs.

    The only reason Big3 upsized everything from cars to SUV's/trucks was because the truck chassis was exempt from CAFE standards in the early years. So they eliminated station wagons and put the family car on a truck chassis and said 'well that's what consumers want cuz after all that's what we're selling to them'.

    Now the truck chassis is included in the CAFE standards but the incentives are all geared towards making trucks that are bigger and more inefficient.

    Smaller cars/sedans have to go from 36 mpg avg to 60 mpg avg
    Bigger cars/sedans have to go from 28 mpg avg to 46 mpg avg
    Smaller trucks have to go from 30 mpg avg to 50 mpg avg
    Bigger trucks have to go from 22 mpg avg to 30 mpg avg

    So hey presto - eliminate all the cars, sedans, and smaller trucks from the production line - and sell only bigger trucks (F150 size) and you get to go from 36 mpg avg to 30 mpg avg. With maybe some experimental electrics/hybrids for the luxury-signalling market.

  • JFree||

    Fortunately Hummer-size chassis may not be included in the new CAFE standards. So if the Big3 have problems meeting the new easier CAFE standards, they can always upsize everyone to a Hummer or a true Monster Truck. Which of course will simply be explained as the customer's changing desires being met through the market.

  • BigT||

    So the response to AGW scaremongering is to raise standards and give car manufacturers a strong reason to make gas guzzlers.

    But, but....unintended consequences! The warmists meant well. Their virtue has been signaled!!

  • Last of the Shitlords||

    It would be easier to just cleanse America of progressives.

  • MJBinAL||

    Really? Easier? HOW?

    Is there a place I can send donations?

    LOL

  • Last of the Shitlords||

    Start by taking your progs to the vet to be put down. Then maybe Trumo can start a program to ship them out of America, one way, taking their passports away.

    Eventually, if we are to have a free country, they will have to be shown the door.

  • Last of the Shitlords||

    The technology to do all of that and sell said vehicles anywhere enlarge current prices does not exist.

  • Dillinger||

    >>>The automaker says the decision ... has to do with reduced demand ... at the Ohio plant

    GM reason false?

  • John||

    GM can't sell sedans anymore because people don't want sedans. They are closing down plants that make sedans. Reason is just a joke on this subject. I really wonder if Eric ever took so much as a basic economics class in college. I am sorry but I don't think that hate studies degree or whatever he got is really paying off very well.

  • Fred G. Sanford||

    Yes, I'm sure the increased price resulting from tariffs had nothing to do with it whatsoever. Trump is the one who needs to take some economics classes, as he clearly forgot whatever he learned while at Wharton. He actually thinks foreign countries are responsible for paying tariffs.

  • John||

    When you consider that an average car uses a ton of steel and the price of steel has increased by $400 per ton on a $30,000 or more car, no the tarriffs have nothing to do with this. Why don't you take a math class. Then after that work up to economics. I really think with some work, you could at least be smarter than chemjeff.

  • chemjeff radical individualist||

    It's just a little tax, or a little regulation, or a little mandate. It's so small! How could it possibly have any effect? I mean, it's only $1 billion. Big deal!

  • JesseAz||

    Jeff, we get it. You're a fucking idiot. You're on a roll today, nobody is questioning how dumb you are. You can stop now.

    It's only a Press Release, not actual facts. It's only two lines that had shit sales last year too, pre tariffs that were closed down. You're a fucking ignorant clown. What a waste of breath.

  • BigT||

    Correct. Lordstown had reduced Cruz production by eliminating 2 shifts over the past year, before tariffs were implemented. This is just the third shoe dropping.

    GM loses $1 bn because they pay retirees 90% of salary, and have many of those. Profligate spending in the 70's, 80's, and 90's doom them to bankruptcy. It's just a matter of whether the retirees all die before GM goes tits up.

  • Earth Skeptic||

    So, death squads?

  • Last of the Shitlords||

    Jeffy, go away. Adults are talking, and you know nothing of the auto industry. So run along you little pussbag.

    A little tyke like you makes a strong argument FOR crib death.

  • Fred G. Sanford||

    Trumptards are the last people to tell anyone to take an economics class, as they, together with their beloved Furhrer, have no understanding of economics. But then I still don't understand why Trumptards seem to gravitate to a Libertarian site, as your Cheeto-in-Chief is anything but Libertarian.

    At any rate, did you complete a thorough evaluation of how much the price of their vehicles were going to increase based on the tariffs and then completed a marketing survey in order to determine what effect, if any, it would have on future sales? I didn't think so.

  • Sevo||

    Fred G. Sanford|11.26.18 @ 6:15PM|#
    "Trumptards are the last people to tell anyone to take an economics class, as they, together with their beloved Furhrer"

    OK, certified fucking lefty ignoramus.
    Fuck off, comrade Stalin.

  • Fred G. Sanford||

    Why don't you take your own advice, Trumptard, and then go find a site where you and other equally ignorant and uneducated Trumpers can share stupid ideas. Perhaps one day you and your beloved Cheeto will understand economics. Then again, you probably never will.

  • The Peanut Gallery||

    Why are you acting like you aren't a Johnny come lately nobody guy who doesn't know about Reason's link situation?!?!?

    Lololol I am literally laughing out loud at how stupid you sound telling other people to leave when you are no one and foind this site 10 minutes ago!!

    Lolololooolllolo

  • Fred G. Sanford||

    Actually I've been a Reason subscriber for over 20 years, peabrain. And unlike rubes like you, I actually understand economics. But since you and your fellow knuckledragging Trumptards don't, I suggest you find a site more suited to your imbecilic views.

  • People who know your history||

    Sure sure Johnny come lately nobody!! Lolololol

    BONA FIDES!!!

    Who cares if you actually proved you're full of shit, YOU SAID THINGS!!!

    AHAHAHHAHAHAHAHA

  • Fred G. Sanford||

    That comment makes as much sense as your average Trumpstain, which is of course no sense at all. Like John you probably studied economics at Trump University.

  • People who know your history||

    And you have shitty reading comprehension too!!

  • People who know your history||

    "But since you and your fellow knuckledragging Trumptards"

    AHAHHAHAHAHA SO SAD!!!

    "everyone who points out that I'm stupid is a Trumptard"

    except...they're idiot trash just like you!!

    Ahahahahah this isn't HuffPo Johnny, there are actual Libertarians here so that sad clown act of yours won't work!!!!

    A pox on all of you!!! Ahahahaaha

  • Fred G. Sanford||

    Congratulations on figuring out that this is a Libertarian site. Maybe Trumptards aren't as dumb as I initially thought. Well...yes you are. The real question is why imbecilic Trumpers would want to post on a Libertarian site.

  • People who know your history||

    No, the question is why you're so stupid that you can't use HTML AND think Libertarians are Trumpists!!!

    Ahahahahah you're as dumb as that orange clowns followers!!!

    Ahahahahhaah violating the 13th amendment on you!!!

  • JesseAz||

    You understand economics so much, Fred, that you think that tariffs passed this year caused a decline in sales last year.... What school of economics is this?

  • Fred G. Sanford||

    "Tariffs will make our country much richer than it is today. Only fools would disagree. We are using them to negotiate fair trade deals and, if countries are still unwilling to negotiate, they will pay us vast sums of money in the form of Tariffs. We win either way......" - Donald J. Trump

    And you troglodytes voted for this.

  • People who know your history||

    Yeah, the people who voted for Trump and pretty fucking stupid, but many of them have figured out how to use HTML unlike you!!!

    You're just stupid for a different...REASON!!!

    AHAHAAHHAHAHA TITLE IXING YOU !!!!

  • Fred G. Sanford||

    Says the person who can't even form a coherent sentence. I bet you dun grad-u-ated fifth grade, Jethro.

  • People who know your history||

    Not even, which makes the fact that I can use HTML properly and you can't EVEN WORSE FOR YOU!!!

    AHAHAHAHAH!!!

  • Fred G. Sanford||

    Let me know when your understanding of economics exceeds using a calculator to figure out how much a bag of pork rinds costs.

  • People who know your history||

    Why would I care what your favorite snack costs?

    Ahahahhahhhahahaha

  • Fred G. Sanford||

    But then I'm surprised you even have an internet connection, your trailer park must be advanced (all things considered). Your wife/sister must be so proud.

  • People who know your history||

    Yes I'm incredibly stupid and inbred which makes me knowing how to use HTML properly and you not being able to LOOK SO MUCH WORSE FOR YOU!!!

    YOU'RE DUMBER THAN INBRED TRAILER TRASH!!!

    AHAJAAHHAHAAHHAHAHAH

  • People who know your history||

  • Fred G. Sanford||

    You own me? You must have me confused with the livestock you love to molest. And pork rinds are the preferred snack of all redneck Trumpstains, quit denying that you consume them by the ton (although this still doesn't explain why you need a calculator to figure out how much a bag costs). Perhaps you are a product of the southern educational system (that and inbreeding).

  • People who know your history||

    Working links

    Me - 1
    You - embarassed

    Ahhahaahha yes bitch I own you and you askong me proves you know it!!$

  • Fred G. Sanford||

    The only thing you own is a subscription to Field & Stream. Actually that may be beyond you. Does the WWE have a magazine with lots of pictures? By the way, what does "askong" mean, retard?

  • People who know your history||

    It means you DON'T KNOW HOW TO USE HTML TO POST A LINK!!!

    AHAHAHHHA

    #OWNINGYOUWITHVOCABULARY

  • Fred G. Sanford||

    Are you sure it means you don't know how to spell? Xan I askong you about that?

  • People who know your history||

    I'm sure!!!

    But yeah I can't spell, I'm an inbred piece of trailier trash!!! Can't you fucking read?

    WHICH MAKES ME KNOWING HOW TO USE HTML AND YOU TOTALLY FAILING EVEN WORSE FOR YOU!!!

  • Fred G. Sanford||

    Xan you spell? I'm askong you. Xan we askong Trump's tariffs?

  • Fred G. Sanford||

    Xan I askong you if you live in a trailier?

  • People who know your history||

    YOU'RE USING ASKONG INCORRECTLY!!!

  • People who know your history||

    Not really no!! But I'm INBRED TRAILIER TRASH, WHICH MAKES ME KNOWING HOW TO USE HTML AND YOU TOTALLY SHITTING THE BED A HUGE FAIL FOR YOU!!!

    AHAHAHAHHAJAJ YOU'RE DUMBER THAN TRAILER TRASH!!!!

  • Fred G. Sanford||

    So you live in a "trailier"? Is there room for both your wife/sister and your livestock? Xan I askong you?

    And to believe I though Trumptards limited their communication to grunts and hand motions.

  • People who know your history||

    YOU'RE STILL USING ASKONG INCORRECTLY!!!

    STOP TREATING IT LIKE A LINK OR YOU'LL JIST KEEP FUCKING UP!!!

  • People who know your history||

    And to believe I though Trumptards

    Ahahahahhahahahahhahahahahahaha!!!!

  • Fred G. Sanford||

    What kind of trailier do you have? Xan I askong?

  • Fred G. Sanford||

    I jist keep fucking up? Maybe if I lived in a trailier.

  • People who know your history||

    That's a though!!

    Ahahahahahahaahyaha

  • Fred G. Sanford||

    Covfefe. Xan askong.

  • People who know your history||

    And to believe I though Trumptards

    Ahahahahhahahahahhahahahahahaha

    Fred G. Sanford|11.26.18 @ 7:52PM|#

    And not being able to spell is as dumb as it gets.

    AHAHAHAHAHHAHAAH

    DON'T BE SO HARD ON YOURSELF!!!

    AHAHAHAHAHAHAHAHAHAHHA

  • Fred G. Sanford||

    And not being able to spell is as dumb as it gets. But then Trump can't spell either, so I guess you fit right in. Covfefe...xan askong...trailier...

  • People who know your history||

    And to believe I though Trumptards

    Ahahahahhahahahahhahahahahahaha

    Fred G. Sanford|11.26.18 @ 7:52PM|#

    And not being able to spell is as dumb as it gets.

    AHAHAHAHAHHAHAAH

    DON'T BE SO HARD ON YOURSELF!!!

    AHAHAHAHAHAHAHAHAHAHHA

  • Fred G. Sanford||

    There's a difference between a typo and not knowing how to spell, as evidenced by askong.

  • People who know your history||

    And to believe I though Trumptards

    Ahahahahhahahahahhahahahahahaha

    Fred G. Sanford|11.26.18 @ 7:52PM|#

    And not being able to spell is as dumb as it gets.

    AHAHAHAHAHHAHAAH

    DON'T BE SO HARD ON YOURSELF!!!

    AHAHAHAHAHAHAHAHAHAHHA

  • Last of the Shitlords||

    Fred, cunt, this is OUR site. Now fuck off.

  • Deconstructed Potato||

    That whole exchange was surreal

  • Fred G. Sanford||

    Here's a link to an article that even dense Trumptards should be able to comprehend. As explained in the article, the tariffs were not the only reason for the job cuts, but they were a reason.

  • Fred G. Sanford||

    The article I tried posting (but was prevented from doing so by Reason) is from Forbes and is on their site.

  • People who know your history||

    I'm not clicking on that very likely to be child pornography link.

  • Fred G. Sanford||

    In other words, you are going to click on it later when your wife/sister isn't around.

  • The Peanut Gallery||

    Ahahahah This guy who can't figure out how to post a link wants people to think he knows things and isn't an idiot!!!

    Lololololololol

    He calls OTHER PEOPLE TARDS while he is demonstrating that he is TOTALLY ignorant of a very simple process!!!

  • Fred G. Sanford||

    Sort of like how Trump and his brain dead minions don't even know who is responsible for paying tariffs.

  • The Peanut Gallery||

    "Sort of like how Trump and his brain dead minions don't even know who is responsible for paying tariffs."


    No, MUCH worse!!!

    Ahahahaha you look so fucking dumb!!!

  • Fred G. Sanford||

    No Trump supporter can call anyone dumb. You must be so inbred you are related to yourself.

  • People who know your history||

    "No Trump supporter can call anyone dumb. "

    Hey guy who can't use html, xan we talk about me and not people who aren't me!?!

    Ahahahhah

    NO YOU CAN'T because it is your sad ass internet put down go to move !!!

  • Fred G. Sanford||

    Xan we talk? I don't know, xan we spell? Apparently not. Another inevitable consequence of inbreeding.

  • People who know your history||

    Truedat!!

    WHICH MAKES YOU NOT KNOWING HTML LIKE I DO EVEN WORSE!!!

    AHAHAHAHA YOU'RE DUMBER THAN INBRED TRAILER TRASH WHO CAN'T SPELL!!

    AHAHAHAHHA HOW FUCKING SAD DOES THAT MAKE YOU!!! AHAHAHHAHAHAHAH

  • DenverJ||

    Reason doesn't care if you post a link but it has to meet a length limit. One way is to make it a link. This is how to do that.

  • The Peanut Gallery||

    It's simple!! That is why he looks so stupid calling other people tards!!!

    Ahahaahahh

  • Remember to keep it all polit||

    You're comparing the $400 input to the $30,000 retail price?

    Tell us more about those economics classes you remember so well.

  • Utilitarian||

    It's idiotic to pretend that tariffs are solely responsible for GM's actions, but to pretend that they bear no responsibility is equally idiotic. They absolutely played a part. Also, the tax on steel imports is not the only one Trump increased that affects automakers.

  • Last of the Shitlords||

    GM will move. Ore production to China, because China is a growth market. Period. This was going to happen. Unfortunately, it's happening after Obama gave away $50 billion to them.

  • MJBinAL||

    The average new car uses a few hundred pounds of steel these days and the steel tariffs would have very little cost impact to the car ... less than $100, much less. Lots of plastic from oil that is down in price though. The average new car does even weigh a ton, let alone have a ton of steel in it.

  • JesseAz||

    The two lines that GM closed down were closed down because consumers didn't want them. They didn't want them last year either. My god how fucking ignorant are some of you?!?

  • Red Rocks White Privilege||

    Dumbfuck Hihnsano doesn't realize that no one wants to drive the Buick sedans he so loves.

  • MJBinAL||

    That is the part of the story that is important. The tariffs are a trivial issue because steel is such a small part of the vehicle cost.

  • Sebastian Cremmington||

    Consumers want expensive steel and 15% ethanol in gasoline right?

  • Red Rocks White Privilege||

    Pretty salty remark considering that below, you flat-out admit that the sedan segment has been dying and that it makes more sense financially for the Big 3 to shift their focus to higher-margin vehicles.

  • Last of the Shitlords||

    They'll still make and sell those Buick's in China. Buick is hot there. Long wheel based sedans are the shit there. The big status symbol is a high end sedan with a chauffeur.

  • MJBinAL||

    Yes, and they are hard to export to China since China imposes limits and tariffs to keep them out.

    But the Chinese are major supporters of Free Trade! (or something)

  • Last of the Shitlords||

    They love Buicks. China is why Obama didn't push GM to close Buick too.

  • Last of the Shitlords||

    It's very telling when there are still new 2018 Cruzes on lots being discounted over $7k in higher trims.

  • MJBinAL||

    The alleged increased price resulting from tariffs had nothing to do with it because this decision was probably made months ago, if not a year ago. These plants have been running at low utilization (AKA running at a loss) for several years at least. That kind of thing can't go on forever.

  • Remember to keep it all polit||

    I really wonder if Eric ever took so much as a basic economics class in college.

    It's pretty damned obvious John never did, or promptly forgot it.

  • Leo Kovalensky II||

    John, if you don't believe that a billion dollars in tariffs is bad for GM, then why would you (presumably) believe that lower corporate taxes or fewer other regulations would be good for business?

  • buybuydandavis||

    We are Legion.
    Get used to it.

    MAGA

  • Wise Old Fool||

    Because you can't refit factories to make trucks and SUVs. No this is the result of tariffs and other crappy Trump policies

  • Red Rocks White Privilege||

    Right, the closing of the Oshawa plant in...Canada..was Trump's fault, not market forces in the industry.

  • MJBinAL||

    WINNER!

    WE HAVE A WINNER!

  • WhatAboutBob||

    Who cares what GM says. It's all Trump's fault!

  • Wise Old Fool||

    Basically yes it is. They lose a billion over increased price cost of course they have to do something to offset the loss.

  • Red Rocks White Privilege||

    ::Ignores that sedans have been a dying segment for years, blames Trump like a typical Boomer shitlib::

  • MJBinAL||

    Wise Old Fool = Stupid Old Git

  • chemjeff radical individualist||

    No no no. The reason can't be because of tariffs. Why John and LC1789 have told me so. It must be due to a struggling economy.... no that can't be it either, because the economy is stronger than it's ever been. No it must be due to all of those onerous regulations that GM has to comply with.... oh wait, I've been told that Trump is the most regulation-cutting guy evah. Well gee, who knows the real reason. Oh wait I know! It's the Democrats' fault. Quick, someone find out where Nancy Pelosi was when GM made their announcement!

  • People who know your history||

    "No no no. The reason can't be because of tariffs. Why John and LC1789 have told me so"

    Hey look you're bitching about other people how novel.

  • JesseAz||

    Jeff, you fucking dumbass... the lines GM closed today were two cars that have been selling badly for over 2 years. This was pre-tariffs. My god man, how dumb are you?!? Honest question. Have you ever thought deeper than the headline you just read?!?

  • Yellow Tony||

    Stop bullying. Why is everyone so mean here?

  • Red Rocks White Privilege||

    Dumbfuck Hihnsano doesn't realize that even Ford is giving up on sedans.

  • MJBinAL||

    And Hyundai is hurting because they do not have a truck line. Margins have been in the shit there for several years because they keep discounting in the attempt to move passenger cars.

    Also having nothing to do with steel tariffs.

  • Last of the Shitlords||

    I need to get into contact with Jeffy's Dad. Jeffy needs more beatings. Maybe a broken arm. His dad should throw him down a flight of stairs. Maybe Jeffy will begin to learn.

  • Unicorn Abattoir||

    Is this the same GM that was rescued with billions in taxpayer dollars? (Yes, I know - they rescued GM to save the UAW)

    Live by the government, die by the government.

  • Remember to keep it all polit||

    Lesseee ..... $12B to the farmers who are losing money to tariffs. How much will GM and Ford get? Will FCA get any? Tesla?

  • Unicorn Abattoir||

    Lesseee.....I don't recall supporting a $12B bailout to farmers. And as far as I know, farmers weren't bailed out in 2008 (and neither was Ford).

  • Remember to keep it all polit||

    Lesseee .... I haven't read any news since 2008, so I can pretend I know everything.

  • Unicorn Abattoir||

    I totally believe that.

  • Unicorn Abattoir||

    Am I still on your enemies list, Hihn?

  • MJBinAL||

    Yes, but you believe in the Great Pumpkin and Obama as savior too.

  • Unicorn Abattoir||

    Acutally Hinnybinny, I voted for Johnson. But don't let facts get in your way.

  • Last of the Shitlords||

    I now vote for Hihn to be civilly confined against his will.

  • MJBinAL||

    I was hoping that the guy who was saying it would be easier to get rid of all the progressives was making progress on making that happen. Surely that would include Hiln. He certainly is not a libertarian of any sort.

  • Last of the Shitlords||

    Hihn should be given shock treatments. Not because he necessarily needs them, but for the sheer fun of it.

    But yeah, he needs to go too.

  • Wise Old Fool||

    None, because rural states have Washington by the balls because of that whole pesky Senate 2 votes per state thing.

  • Last of the Shitlords||

    Sounds like something a commie traitor might say. Kill yourself Hihn.

  • AlmightyJB||

    Yeah, that should have never happened. Obama sure loved giving taxpayer money to his union campaign contributers. Of course that was a drop in the bucket compared to the trillion dollar "stimulus" kickback to the public sector unions.

  • AlmightyJB||

    Tariffs suck and are stupid policy but this was in the works before the tariffs. Ford is also shifting focus to trucks. That's their bread and butter.

  • Unicorn Abattoir||

    That might actually be a good thing for Ford. My understanding is that their consumer vehicles (i.e., non-trucks) are...problematic.

    And they shouldn't have discontinued the Econoline!

  • AlmightyJB||

    Pervs everywhere agree!

  • Unicorn Abattoir||

    Try painting a wizard scrying a crystal ball on the side of a Ford Transit. It's just not the same.

  • AlmightyJB||

    No it wouldn't be. Lol.

  • Wise Old Fool||

    Had a Ford Focus, it was perfectly dependable, sold it at 150K with no problems. Still have my GMC truck, no problems with it either.

  • Unicorn Abattoir||

    Lesseee.....I don't recall supporting a $12B bailout to farmers. And as far as I know, farmers weren't bailed out in 2008 (and neither was Ford).

  • Remember to keep it all polit||

    Lessseeeee .... somewhere else.

  • People who know your history||

    Didn't have anything for that one didja?

  • BigT||

    1) is almost right, but 2) is so ridiculous as to be 'not even wrong'. Has the debt gone from $20 to $40 trillion? Apparently you are an idiot.

  • Unicorn Abattoir||

    It's Hihn. But he can't post here under his original name because he became so insufferable as to be banned.

  • Last of the Shitlords||

    There is a theory that the real Michael Hihn had counseled contact Reason and insist that the handle and all posts be scrubbed. I just wish that could extend to any other handles identified as relating to the same poster by the commentariat.

    Then we could run him out of here forever.

  • Jerryskids||

    Keep in mind Trump glanced at a Road and Track once so now he's the world's foremost expert on automotive manufacturing, I wouldn't question his expertise in this matter. GM's a failing loser nobody likes all because they wouldn't listen to Trump's very good advice. Sad!

  • Philadelphia Collins||

    Wake me when Honda, Toyota, Nissan, Mazda, or BMW are closing factories.

  • BigT||

    Wake me when they have union factories.

  • Last of the Shitlords||

    None of those companies were victims of Obama's wonderful 'reorganized '. For which Obama should be sent to prison for. Among so many other things.

  • chemjeff radical individualist||

    Not surprising that John is here coming to the defense of tariffs with the "it's just a little itty bitty tariff" defense. By that reasoning, then "it's just a little itty bitty tax" or "it's just a little itty bitty regulation" are totally valid reasons for the state to start meddling in the economy for any reason.

    If a $400 tax on a ton of steel is so "itty bitty" and therefore de minimis, then what would be the amount of tariff that woudln't be itty-bitty anymore?

  • Remember to keep it all polit||

    It isn't quite so itty bitty by the time the $400 input goes through several markups on the way to a $30,000 car on the dealer lot.

  • chemjeff radical individualist||

    Tell that to John. I'm just using his figure.

  • Last of the Shitlords||

    So, as usual, you have no point Jeffy. Just puking out your brainless emotions.

    You really are just an annoying shitposter. This is why everyone hates you so much.

  • Myshkin78||

    He explained his point pretty clearly. You simply can't read.

  • Nardz||

    Ok.
    Explain the markups.
    What is each one, and what is the total cost of them?
    Use numbers

  • People who know your history||

    I guess that was too much to ask.

  • Remember to keep it all polit||

    All inputs are marked up by the time something hits retail.

    What are you, some kind of socialist who thinks manufacturers can just absorb sudden price increase because profits are immoral?

  • BigT||

    You must be the first lefty ever to realize that fascism is socialism. Congrats for that!

    Please explain how Trump is fascist for us.

  • Last of the Shitlords||

    No, you're a socialist. Now go die somewhere. No one loves you. Nor are you worthy of love.

  • MJBinAL||

    And start with $400 total steel cost, not $400 in tariff value. Make your magic work with less than $100 per vehicle in tariff cost. Then figure in a cost reduction of a couple of hundred for plastic resins based on lower cost oil.

    You see, you have to look at the big picture.

    Then explain how these vehicles were losing money for years in advance of the tariffs.

    Show your work.

  • People who know your history||

    Wait... You think they mark up... The steel?

    Seriously?

    Ahahhahaahhahahahahahahhaha what the fuck is wrong with you!!!!

  • Ron||

    you do realize that all manufactures are dealing with the same tarriffs but its not bothering Honda, BMW, Toyota. it must be the product then

  • Last of the Shitlords||

    It's also the UAW deal Obama saddled them with. A lot of us who follow th auto industry that aren't communist traitors (democrats) knew this was coming.

  • JesseAz||

    He's coming to the defense of reality instead of "what headline did Jeff just read to make him an expert." The lines GM shut down were based on shit sales the last few years. This was before the tariffs you fucking ignoramus.

  • Red Rocks White Privilege||

    Dumbfuck Hihnsano thinks the tariffs started on day one of Trump's presidency and that everyone still loves to buy sedans.

  • Last of the Shitlords||

    Hihn! Time to kill yourself! No one could ever love you. Your own mother probably regrets not strangling you in your crib. So crawl away and die.

  • SQRLSY One||

    "Trump told The Wall Street Journal that he spoke with GM CEO Mary Barra on Monday and told her that GM "better damn well open a new plant there pretty quickly.""

    Mary Barra, if she is CEO-level smart in these days and times, will open up a new plant immediately...

    ... To produce giant "All Hail Der TrumpfenFuhrer" posters, murals, and wall hangings! (Mugs and hats and shit would help as well).

  • MJBinAL||

    Or convert a plant from cars to SUVs. The problem with that is that GM still has excess capacity even after shutting these plants down.

    The elephant in the room is that GM has too many plants building low volume products that require different production lines. These plants were going away no matter what over time unless GM magically started to gain market share in a big way.

  • Conchfritters||

    (who make an average salary of $41,000)

    They couldn't make a buck when they paid the assembly line workers $110,000 per year, and now they can't make a buck when they pay them $41,000 per year. Looks like it doesn't really have much to do with the overhead as much as it has to do with no fucking sane person wants to drive a Chevy Cruze, or half of the other crap models they have out there.

  • SIV||

    ^This^

  • People who know your history||

    Wait, you quote a PREDICTION and then pretend like that is proof of something?

    Post the actual numbers you lying idiot.

  • Last of the Shitlords||

    I don't believe anything that moron shitposts. He's a liar and a cheat.

  • chemjeff radical individualist||

    Well I don't know how many car buyers are like me, but I was so sickened by the car bailouts that I will absolutely refuse to buy a GM or Chrysler car now. It is only Toyotas and Nissans for me. And the Team Red goombahs around here should be happy with that since those tend to be made in red states anyway.

  • JesseAz||

    Toyota also got government money you fucking dumbass.

    link

  • People who know your history||

    Jeff is so fucking stupid lololol

  • Last of the Shitlords||

    Cars tend to be made in red states because red states won't try and bankrupt a company for daring to be a manufacturer. Unlike you and your communist pals Jeffy.

  • SIV||

    Ha, you Trump haters don't know shit about the car business. GM couldn't make a profit off those shit sedans if the steel was free. Even a Chinaman won't buy that Buick They're woke though, female CEO

  • Last of the Shitlords||

    Buicks are very popular in China.

  • Paloma||

    So If it's such a great deal, why doesn't Trump open up a plant with his own money?

  • Myshkin78||

    Hey, if you succeed in the casino business you can succeed in the... oh, wait

  • DenverJ||

    Tariffs are bad economics. But, they can at times be good geo-politics.
    I like cheap crap at much as anyone, but I thought the tariffs were intended as a way to force China to play a little fairer.
    I'm not saying that's good or not, I'm just pointing out that, if that is the intent, then it may be that some economic pain is worth the desired results.
    Again, not taking any position about the wisdom of such an approach.

  • Last of the Shitlords||

    They've been doing that since long before Trump was President you idiot, you clearly know nothing of the auto industry.

  • Fats of Fury||

    What?! No more Pontiacs? No more Oldsmobiles? Damn you Trump and your tariffs!

  • SIV||

    Lol

  • DiegoF||

    As long as they don't affect Saturn production I'll be cool.

  • Earth Skeptic||

    Wait, there's a factory on Saturn? Bring those jobs home!

  • I am the 0.000000013%||

    Geo Prizm's all the way...

  • Last of the Shitlords||

    Plu Okymouths. They better not fuck with Plymouth.

  • Rich||

    Trump told The Wall Street Journal that he spoke with GM CEO Mary Barra on Monday and told her that GM "better damn well open a new plant there pretty quickly."

    Or else what? More tariffs?

  • Fats of Fury||

    What else? Barra was installed by POTUS maybe POTUS will have to can her. "You're fired Marry Barra!"

  • Diane Reynolds (Paul.)||

    GM killed the Chevy Volt, from where I stand, this whole situation is in the Win column.

  • Last of the Shitlords||

    The current Volt is actually a good car. But it isn't selling that well even with federal,subsidies. It's a car Obama wants to.make us drive. Not what people want to drive.

  • Ken Shultz||

    "One could argue that it's not a direct line from Trump's tariffs to GM's announcement Monday. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the Ohio plant, and an overall strategic shift towards more popular crossover and SUV models."

    In addition to shutting down some of its unpopular lines, they're also betting more on driverless technology.

    From companies like Uber and Lyft to electric cars and driverless technology, I would expect the pace of creative destruction to accelerate in the automotive industry over the coming years. I'm not sure Trump should be expected to have anticipated such rapid change.

    That being said, Trump probably should have refrained from making such promises precisely because the future is so hard to predict. On the other hand, I would continue to oppose tariffs on steel and aluminum--even if GM's sales had gone up despite the tariffs. I don't see why Trump should change his philosophy--only because of this.

    P.S. GM's stock was up some 7% on the day after this announcement. To what extent have tax cuts and deregulation made this creative destruction possible? Are we against creative destruction now to save jobs?

  • Yellow Tony||

    Yeah, this article is pretty fucking weak. Eric the Oil Derrick (Awesome nickname, right?) shouldn't feel he has to write shit containing weak arguments and tenuous relationships as to show the bad effects of Trump's tariffs. If the policy is so crap, then the only thing Boehm should have to write is an article referencing data and the salient effects.

  • Yellow Tony||

    And To Be Sure™, these tariffs are dumb.

  • Last of the Shitlords||

    I can always spot a car article written by someone. Who is t a car guy a mile away.

    Eric knows both jack and shit about cars.

  • Mr. JD||

    "That being said, Trump probably should have refrained from making such promises precisely because the future is so hard to predict"

    Does he want to be right or does he want to get elected?

    "If you like your doctor, you can keep your doctor!"

  • Ken Shultz||

    "As Scott Lincicome, a trade attorney and senior fellow at the Cato Institute, pointed out on Twitter, that $1 billion could have paid for a years' salary for 24,000 assembly line workers"

    Seems to me that those lines might have disappeared even without the higher cost of materials.

    If they need to make different kinds of cars, well, don't crossovers and SUVs require as much or more steel and aluminum than the lines they're replacing?

    The investment in driverless technology is probably unrelated to material costs.

  • Ken Shultz||

    Does Mr. Linciome imagine that the primary purpose of GM should be to maximize the number of employees rather than maximize profits?

  • BigT||

    "Seems to me that those lines might have disappeared even without the higher cost of materials."

    Yes, at Lordstown they had already eliminated two shifts long ago. This was inevitable due to poor Cruz sales.

    Why are we upset when a company responds to market forces?

    Oh, yeah....Trump.

  • CDRSchafer||

    If we just had elected Beto.

  • Yellow Tony||

    HONDA FOREVER BITCHES

  • Last of the Shitlords||

    E Honda? I'm more of a Zangief guy.

  • Jayburd||

    I miss the Aztec

  • Rev. Arthur L. Kirkland||

    Every layoff of a Trump voter in Ohio or Michigan is a small, welcome vindication of personal accountability.

    Let those yahoos eat their goofy red hats.

    Compassion for the poorly educated and ignorant losers inclines me to overlook their bigotry and moral deficiency in this moment of need and to hope those Trump hats are tasty and nutritious.

  • Red Rocks White Privilege||

    Arthur L. Hicklib doesn't realize that most of the layoffs are in the white collar section of GM.

  • buybuydandavis||

    "My hatred of Americans gives me life"

  • m4019597||

    If this were about tariffs or Trump, the GM jobs would simply move to Canada or Mexico.

    Instead, Canada is losing a factory and Mexico gains nothing.

    This isn't about tariffs or Trump. It's about changing their range of products.

  • Red Rocks White Privilege||

    Dumbfuck Hihnsano doesn't realize that GM announced the closing of its Gunsun plant in South Korea months ago, and might pull out of the country entirely.

  • Intelligent Mr Toad||

    There's another reason for GM's actions which is AT LEAST as worrisome as the tariffs; to me, MORE worrisome, and that reason is: demand for GM's new cars (and other products) is turning out much lower than predicted. People are apparently becoming less enthusiastic about spending money, and it's happening faster than expected.

  • BigT||

    All wrong. Confidence is highest in decades, workforce is highest ever, unemployment lowest since 1968.

    Don't just make sh*t up. Too easy to refute.

  • buybuydandavis||

    "Some have called it ..."

    The voices in his head aren't loud, but they're persistent.

  • Sebastian Cremmington||

    Baby Boomers started retiring in 2011 so labor force participation was never going to hit the highs like it did in 1999. That said, conservatives pretended the statistic didn't exist in 2004 and then pretended it was the most important statistic when Obama was president.

  • Last of the Shitlords||

    Hihn is suck a stupid bitch. Knows nothing about cars and think that the model line up of a car company has anything to do with Trump.

    Stupid, stupid, hihnbitch. Just a drooling idiot, pederast.

  • Last of the Shitlords||

    "Dem sweep"........hahahaha!!!!!!!!

    Weak gains for an opposition party midterm. Stupid Hihnbitch is stupid.

  • buybuydandavis||

    "After Losing $1 Billion to Tariffs, General Motors Announces 14,000 Layoffs"

    Post hoc ergo propter hoc

    "One could argue that it's not a direct line from Trump's tariffs to GM's announcement Monday. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the Ohio plant, and an overall strategic shift towards more popular crossover and SUV models.

    That may have played a role in the decision to lay off what amounts to 8 percent of GM's global workforce. The layoffs will hit 8,000 white-collar employees and at least 5,900 blue-collar workers.

    Still, the added cost imposed by the tariffs is surely a factor. "

    So GM says it's about the demand for the cars. But Boehm knows better.

    "It's all Trump's fault! Err, um,... Trump was a factor. ... ORANGE MAN BAD!".

    Is this the next 6 years at Reason?
    Boehm saying "look, downside of Trump policy" without ever mentioning the upside: a booming economy, booming jobs, and booming wages?

  • Red Rocks White Privilege||

    Shh, we're not supposed to know that these factories were all tied to a dying segment in the auto industry.

  • ILuvPolitics||

    Booming wages?

  • ||

    Boehm saying "look, downside of Trump policy" without ever mentioning the upside: a booming economy, booming jobs, and booming wages?

    Also, 8,000 white-collar jobs and 5,900 blue-collar jobs at 'Government Motors' sounds like plenty of open-field common ground between income inequality left(-libertarians?), anti-crony capitalists, and the more general libertarian body at large.

    The TDS is suffocatingly strong.

  • Sebastian Cremmington||

    Then why is Trump weighing in? This is what you wanted when you voted for Trump.

  • tlapp||

    Months ago GM asked the government to mandate electric vehicles. Now they close down plants. Admitting they can't produce cars people want and can't survive without government propping them up.

    Dumbest move ever to bail them out. Only kept a flailing company in business.

  • Earth Skeptic||

    Too big to flail?

  • ILuvPolitics||

    This article is quite thin

  • I am the 0.000000013%||

    I think the Trump tariffs are terrible, but I don't think they are the cause of the shutdown of sedan production.

    American made sedans don't compete with foreign made sedans, whereas American SUVs, CUVs, and trucks do. If the American car manufacturers cede the sedan market they might succeed in larger vehicle markets.

    The next question to be answered is if alternative transportation is going to weaken individual auto-ownership. It isn't just autonomous cars, it's more people living in denser populations, scooters, ebikes, uber, lyft, etc...

  • Sebastian Cremmington||

    That is why on some level focusing on trucks and large SUVs is a good idea—the last people to give up their own vehicles will be work trucks and people with large families. The first people will be single people that live in urban areas.

  • higgyb||

    "Reason." Uh, huh. Tell me another one.

  • CE||

    Mountain of auto loans and rising rates had nothing to do with it.

    40K for a pickup had nothing to do with it.

    Better, cheaper models from the competition had nothing to do with it.

  • Sebastian Cremmington||

    GM is profitable because of trucks and large SUVs. GM's mistake is not having as many CUVs as other automakers. Heck Cadillac just now introduced its second CUV which is total mismanagement.

  • Headache||

    GM announced $3+ billion third quarter profits. $4 billion would have been better?
    Ontario, Canada plant makes Impalas And Cadillac XTS. 2552 employees get the ax Jan 2019.
    The same plant employed 23,000 in 1980.
    Two things to note: 1) GM management makes bad decisions. 2) Fucking robots don't need bennies.

  • Headache||

    CNN's viewer numbers are less than Nickelodeon's. Reason prefers CNN's TDS model. Guess what?

    As CNN goes Reason goes.

  • Headache||

    I guarantee GM is not going to abandon the robots in these plants. That would be stupid. Oh wait, its GM, I'm sorry!

    If GM isn't that stupid, follow the robots that is where the jobs will go as well.

  • Last of the Shitlords||

    Many of GM's senior management should be tried for criminal homocide stemming from the fatalities caused by the ignition switch scandal.

  • Rob Misek||

    If GM can generate 1 billion from closing 5 plants imagine how rich they'll get from closing the rest.

    Some people just aren't good with money.

  • Server Admin||

    It's unfortunate that this news comes around this time of year. Having 14,000 people lose their jobs is heartbreaking and many, many families will be affected. Hopefully some of those workers can find work quickly otherwise tougher times will sadly be coming ahead.

  • Daniel||

    GM's issue have been known long before the tariffs. The tariffs are nothing more than a convenient scapegoat for a failing line of products.

    2017: Ford announces plans to stop making sedans that don't sell and concentrate of Trucks and SUVs.
    Media: Weird, but ok.

    2018: Chevy announces plan to do the same thing, but blames tariffs and not the Volt/Cruze lack of sales.
    Media: Trump tariffs are The Devil, Mama!

  • Murray99||

    Well, recently I read a publication by the German ifo institute about tariff comparisons between the US and the EU

    The EU levies duties of 5% or higher on 1.926 items (US: 1.307)
    The EU levies duties of 10% or higher on 660 items (US: 472)
    The EU levies duties of 30% or higher on 96 items (US: 24)

    Who is the protectionist waging a trade war?

  • Daniel||

    Just to show that it's not the tariffs....

    :"GM, as it did when cutting the plant's third shift in January 2017, cited the consumer shift away from cars to crossovers for the decision to eliminate another shift.

    "As the market continued to undergo historic changes, it required us to reduce production rates and take numerous down weeks to match production with lower customer demand for compact car," the company said in an emailed statement. "As we look at the market for compact cars in 2018 and beyond, we believe a more stable operating approach to match market demand is a one-shift schedule."

    U.S. sales of the Cruze -- the only vehicle assembled at the Ohio plant -- fell 26 percent through March. In 2017, Cruze volume declined 2.2 percent to 184,751 units.

    The Automotive News Data Center estimates that U.S. Cruze inventory at the end of March stood at 45,000 units, or a 78-day supply."

    http://www.autonews.com/articl.....offs-cruze

  • Mr. JD||

    Candidate A: gun ban, socialism, nationalized healthcare and education, speech codes, activist judges, paralyzing regulations, massive federal debt

    Candidate B: no gun restrictions, less regulation, originalist justices, free speech, some federal debt, a few tariffs

    Reason: Candidate B is the devil! Let's write 5 articles a day about how awful he is!

    The problem with libertarianism is the libertarians.

  • James_R||

    Interesting. No mention of the $14 billion GM has squandered on stock buybacks over the past 4 years. Sounds like much more of a factor than a billion in Tariff costs.

  • rferris||

    How is it possible for a 10% tariff that effects only a small portion of GM's cost is responsible for a 1 Billion loss???
    Sounds more like fake news than fact.
    Telling half, or less of a story is not news, it is more like propaganda.

  • rferris||

    How is it possible for a 10% tariff that effects only a small portion of GM's cost is responsible for a 1 Billion loss???
    Sounds more like fake news than fact.
    Telling half, or less of a story is not news, it is more like propaganda.
    The Quality of Reasons articles has diminished in recent years as it's leaders have achieved a level of fame and now seen to want to be loved by lefties more than support liberty and freedom.

  • eldrick||

    soooooooooo-the tariffs aren't really the problem-it's just easier to blame trump

  • frank1906||

    Find a few problems, first the price of steel has only gone up 150.00 a metric ton and considering GM has contracts directly with the steel mills for rolled galvanized steel, I have a hard time swallowing this crap that it all lies with tariffs. Could it also be, it has too many vehicles that are not selling, and too many cars in holding waiting to be sold. the last date for august showed that GM had over 123 day supply on cars and a 81 day of trucks, that the total cost of there surplus was over 1 billion... WOW, how come the news media never picked up on that?

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