Donald Trump has criticized GM for its decision to cut thousands of jobs to save billions of dollars.
The U.S. car maker announced the layoffs despite a booming economy.
As CGTN’s Owen Fairclough reports from Maryland, the global trade war started by the U.S president hasn’t helped.
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 now the hammer has fallen.
The future of 300 or so workers at a 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 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.
“We have a lot of pressure on them, “Trump told reporters at the White House.
“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 10 years ago.