When Trump isn’t fuming about the Robert Mueller investigation, he’s calling General Motors every New York street word he can think of. General Motors announced the closing of four factories, and that made Trump send one of his aides out for another bag of Alka-Seltzer Chewables. Those four GM factories currently produce under-performing GM models. More than 14,000 people will kiss GM goodbye by either retiring or going to another GM factory in another state. But many of those people will be in the unemployment numbers.
The vehicles produced in these factories aren’t the kind of vehicles people want to own. So thanks to slow sales, low-margins due to the steel tariff, and a surge in SUV and Truck sales, GM will buckle down. GM wants to build fewer cars and more trucks and SUVs. Plus, the company wants to focus on producing electric and autonomous vehicles, as well as integrate the use of more automotive viral tools. The company will also reduce their presence in foreign markets. In a nutshell, GM is in downsize mode. The company expects to save $6 billion by 2020. That gives GM shareholders something to look forward to unless Trump gets in the way.
GM decision to close factories in order to downsize and save money is an act of treason in Trump’s monarchy. Mr. Trump was quick to throw GM’s chairman under his tweeting bus before he let his followers know he thinks GM should pay back the bailout money. That’s a $112 billion penalty for letting the air out of that comfortable industrial blue-collar life that Trump always talks about. That’s the same “have faith story” soybean farmers bought from Trump before he started a trade war with China. It didn’t bother China. Millions of dollars Chinese soybean orders that farmers depended on are now Brazilian orders. And the latest report is Chinese President Xi will start serious trade negotiations with Argentina at the G20 Summit.
GM will hear from Trump supporters, and GM will lose business because Trump sent out a tweet that is, in his language, “a call to arms.” Mr. Trump sabotages his own economic growth and some economists think he has no idea what will happen. But the Democrats say Trump wants to show the world how powerful and scary he can be before breakfast. While Trump tries to beat the Chinese in a game, they invented hundreds of centuries ago.