US automaker GM launches thousands of employees and closes six factories, four of which are in the US. Which makes the Donald Trump anger. In the Deutsche Welle commentary, journalist Henrique Bonham wrote that he also has a part to blame for the decision.
Of course there is another blame. Of course, the decision taken by General Motors (GM), America's largest car manufacturer, does not need to take anything with politics. Of course, GM's head chose "to put the wrong people". Of course, GMA must stop producing cars in China, but it would be better to open a factory as soon as possible in Ohio. Donald Trump sees the world in such easy colors and lights in the world. But not so.
The American industry's iconic General Motors, which makes famous brands such as Chevrolet, Cadillac, or Buick, is no other shape than other major car manufacturers in the world. They all face huge changes. It has to leave the classic engine on fire and switch to alternative engines and autonomous cars (without the driver). It's a special change, however, all the four-wheeled cars will be out of production bands. But to create this new car, fewer people are needed. And car companies need to invest large amounts to be competitive in new companies.
This is the same situation in Volkswagen. And there is the future of major concerns (besides solving the consequences of the diesel scam). And thousands of jobs at the VW will disappear, but in Germany generally more socially acceptable. But they are still investing in billions in the future. In order to become more accurate, $ 44 billion, self-driving, self-governing, mobility and digitization services will be invested in the next five years. Without an investment, already known, automakers risk the loss of compatibility in the new market context. It seems that the VW has learned the bitter dieselgate chapter.
But let's go back to Donald Trump.
Trump is the result of rigid economic policy, especially against repressive measures of its vindictive economic enemy against China. US There has been a significant increase in the economy recently, good news is also regularly in the labor market. Experts have concluded that the war on customs duty worn by Washington and Beijing will mainly damage China, while the US. The economy will take advantage. But to return to the American automotive industry: It is found in the main economic sectors suffering from restricted customs duty imposed on steel and aluminum imports.
In the previous quarter, GM announced a $ 300 million high production cost as the company was forced to pay more on steel and aluminum. Analysts have calculated that the increase in costs has reached one billion dollars. GM and Ford are also facing similar situation. If Trump is now just asking GM's head Marie Beera to stop production in China and move her back to the US, then there is no chance of success in her move. The automotive industry is globally targeted and produces markets where it is usually sold. And even if GMO President did what he said, China would immediately impose a penal duty on every GM car imported by the US.
The problem is complex.
And finally, Mr. President should know that many foreign auto companies have factories in the US: for example Toyota or the three big names in the German automotive industry – Volkswagen, Mercedes and BMW. Later in Spartanburg (South Carolina) his factory has so many cars that he is the largest American exporter of cars. Today, the heads of three German concerts are invited to the White House. What does the American President want to talk with? German car manufacturers do not have to negotiate with them for the duties of any penalty imposed on Trump. Perhaps Mr Days, Zets, and Kruger can explain to the President about the challenges currently facing the global automobile industry – and that GM is no exception. Anger does not help. There is a reality against which the great Donald Trump can not even close his eyes. (Source: Deutsche Welle)
(Photo source: Fortune.com)