GM CEO to withstand pressure in Congress to insist on closing factory layoffs

Abstract On December 6th, according to the CNBC website, US Senators Sherro Brown and Robert Portman met with General Motors in the US Congress on December 5th.

On December 6th, according to the CNBC website, US Senators Sherro Brown and Robert Portman met with General Motors CEO in US Congress on December 5, local time. Mary Barra.


The two senators urged GM to speed up contract negotiations with unions and make decisions about where to produce new products so that the company's plant in Lordstown, the state, could continue to operate.

Bola said at the meeting that GM is working to find opportunities for transfer and retraining for some of the 6,000 affected workers. Last week, the company decided to stop producing several slow-moving models such as the hybrid Chevrolet Volt.

Portman told reporters after the meeting that Bora "willing to use the facility with an open mind," but "does not want to raise people's expectations." Portman and Brown said they are pushing GM to move production from Mexico to Ohio or to produce a new electric car here. Brown also revealed that lawmakers "strongly urged Bola" to speed up GM's decision on whether to close the factory. But Bola did not change the previous decision as they wished.

Bola did not respond positively to blame that GM had the responsibility to retain employees after accepting the US government's multi-billion dollar bailout plan ten years ago.

Bola told reporters after the meeting that GM is grateful to the US government for its help, but the company needs to ensure that it is still a good company in order to continue to provide employment opportunities in the United States, as well as consumers. Need a car. Bola also said that this is the most responsible thing the company can do to thank American taxpayers. GM has invested $22 billion in the US since 2009.

The company is reorganizing to focus more resources on electric and automated vehicles and mobile travel services to respond to market signals that consumers are losing interest in car and car ownership. Bora said that maintaining viability during the turbulent period of the industry will provide GM employees with maximum security. In addition to employees who have retired and received pensions, only GM's strong development is the best way to maintain more than 90,000 jobs in the United States.

The production of Chevrolet Cruze's Lodztown plant is one of two assembly plants that GM plans to discontinue in the United States. In addition, GM plans to discontinue two parts factories in the US and an assembly plant in Oshawa, Ontario, Canada. GM said that these plants are not operating at full capacity, and most of the products are slow-moving and low-margin models. The company also said that some of the 14,000 jobs it has cut may be transferred to other factories, but labor leaders are worried that the move is an excuse for GM to transfer more jobs abroad. Members of Congress expressed indignation at GM's unexpected decision, saying that taxpayers and workers had chosen to stand up with the company when GM needed it. Therefore, they deserve an opportunity to produce a new product line.

The United Auto Workers Union (UAW), on behalf of GM's US factory workers, formally opposed the company's decision on the 3rd of this month. The contract between GM and UAW will expire next fall.

Political influence

Brown and Portman said that GM should retrofit the (Lodston) plant to produce electric models, or convert the Chevrolet Blazer SUV or other products from Mexico to production. Portman also pointed out that GM plans to produce 20 new models of electric vehicles in the next five years. They hope that the Rhodestown plant can be assigned to one or two new models.

Senators are working with governments at all levels to keep the plant running. Portman also kept the factory running, with US President Donald Trump, Labor Secretary Alexander Acosta, and Michael Dewen, who was elected Governor of Ohio. The talks. Trump publicly pressured GM to continue operating in the US and even threatened to cancel all government subsidies to GM.

The tax bill enforced in January reduced corporate tax rates to 21% and GM to approximately $140 million. The bill has increased the competitiveness of the United States in the world, and it should have a certain incentive effect on the reinvestment of companies such as General Motors in the United States. Portman pointed out that the bill also gives companies the ability to immediately write off capital investments and no longer depreciate each year in the traditional way. Therefore, GM should use this tax bill to reinvest its new products at the Rhodestown plant. Although Cruz is no longer as popular as it used to be, the plant should receive GM support, and GM has supported it for the past 50 years.

On the same day, Bola plans to meet with members of the Democratic Party of Maryland, Dutch Ruppersberger, and will meet with Michigan Democratic Senator Gary Peters and other members on the 6th.

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