LINE

    Text:AAAPrint
    Business

    GM layoffs blow to Trump's policy

    1
    2018-11-28 11:28:41Global Times Editor : Li Yan ECNS App Download

    Carmaker to shut down plants due to tensions, poor sales

    U.S. carmaker General Motors' plan to lay off thousands of workers in the U.S. and Canada and shut down several factories has dealt another huge blow to President Donald Trump's inward "America First" policy, which has led to rising tensions between the U.S. and its major trading partners.

    While Trump sought to come clean and pressure the carmaker to change course or take remedial action, GM's decision has highlighted the mounting challenges for the U.S. to rebuild its manufacturing sector by taking protectionist measures and fighting with other economies, experts said on Tuesday.

    The carmaker announced on Monday that it would shut down several plants in 2019, including four in the U.S. and one in Canada and cut up to 14,800 jobs, as part of the company's restructuring plan to shift focus to the development of electric and autonomous vehicles.

    "Regardless of the specific reasons behind the decision, it's no doubt a huge blow to Trump's plan to revive U.S. manufacturing sector," Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges, told the Global Times on Tuesday.

    He said that while Trump's plan to bring back manufacturing jobs to the U.S. sounds very good, it is a very bumpy road that might lead to nowhere given the U.S.' relatively high labor costs and lack of a complete supply chain. "[GM's decision] laid bare those difficulties."

    In its announcement, GM framed the move as a way of getting ahead in changing market trends, but Trump's trade frictions with its trading partners, including China, Canada and the EU, may have contributed to GM's decision, according to Mei Songlin, vice president and managing director of China operations at U.S.-based auto industry consultancy JD Power.

    "Not just the trade war between China and the U.S., but rising global trade frictions have pushed up costs for companies such as GM. This may be one of the main factors behind GM's decision," Mei told the Global Times. He pointed out that U.S.' decision to impose tariffs on aluminum and steel has "definitely" propped up costs.

    In an interview with the Wall Street Journal on Monday, Trump claimed that GM's decision "had nothing to do with tariffs" and threatened to get tough on GM if it doesn't open new plants in Ohio.

    "It's not going to be easy to bring back manufacturing jobs just by issuing threats or fighting with others," Wang said.

    Mei noted that GM's decision also showed an increasingly competitive global auto market with a much bigger appetite for new energy vehicles and self-driven cars. "It is a proactive measure taken by GM to adjust to changes in the global auto market," he said.

    When asked about how the plan would affect GM's operations in China, a spokesperson for GM China only referred to the press release.

    GM sales in China have been suffering in recent months. In the third quarter of 2018, GM sales in China were down 14.9 percent from a year earlier to 835,934 units, the company said in October.

    Related news

    MorePhoto

    Most popular in 24h

    MoreTop news

    MoreVideo

    News
    Politics
    Business
    Society
    Culture
    Military
    Sci-tech
    Entertainment
    Sports
    Odd
    Features
    Biz
    Economy
    Travel
    Travel News
    Travel Types
    Events
    Food
    Hotel
    Bar & Club
    Architecture
    Gallery
    Photo
    CNS Photo
    Video
    Video
    Learning Chinese
    Learn About China
    Social Chinese
    Business Chinese
    Buzz Words
    Bilingual
    Resources
    ECNS Wire
    Special Coverage
    Infographics
    Voices
    LINE
    Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
    Copyright ?1999-2018 Chinanews.com. All rights reserved.
    Reproduction in whole or in part without permission is prohibited.
    主站蜘蛛池模板: 宁陕县| 木兰县| 濉溪县| 东丰县| 汉寿县| 商水县| 同江市| 宝山区| 犍为县| 神池县| 德钦县| 南皮县| 黄浦区| 商丘市| 简阳市| 大埔区| 社会| 镇平县| 荥经县| 永善县| 德庆县| 宜州市| 凌云县| 景德镇市| 泸定县| 肥城市| 元朗区| 剑阁县| 莱州市| 出国| 兰考县| 阜南县| 古浪县| 富民县| 农安县| 肃南| 乌拉特中旗| 漳平市| 封开县| 尼勒克县| 招远市|