*By Justin Chermol and Carlo Versano* When General Motors announced a major restructuring that would result in mass layoffs and plant closures, the American automaker managed to do what few others have: unite the left and right in anger and disappointment. Rep. Debbie Dingell (D-MI) represents a suburban Detroit district that will be affected by the reductions. She told Cheddar in an interview Wednesday that she was surprised by the timing, given that the auto industry is cyclical. Both Democrats and Republicans think "they are the worst corporation in this country." "They have no fans right now," she said. GM's newest strategy is twofold: the company is shrinking its sedan footprint in response to market conditions and consumer tastes, as well as investing in an electric, self-driving future it's terming "Zero Crashes, Zero Emissions, Zero Congestion." Ford ($F), GM's main American rival, announced in April that it will scale about 90 percent of its auto production to trucks, utilities, and commercial vehicles by 2020. The company went on to explain that it would discontinue four of its sedan models and invest more in autonomous technology. Back in June, in a cautionary note, GM [wrote](https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rJBrNbApznVU/v0) to the Department of Commerce, warning increased tariffs could lead to a "smaller GM." Despite its foresight, GM didn't cite tariffs as a reason for the layoffs in its statement Monday. Instead, CEO Mary Barra said almost the opposite ー that the economy was so strong that it would be preferable to make changes now rather than trying to restructure during a slowdown. Automakers learned that lesson the hard way during the financial crisis. Dingell said that while she indicated to President Trump that she would support a "NAFTA 2.0" trade bill, she has changed her mind in the wake of GM's restructuring. "I will not support a trade bill that lets that company put any more jobs in Mexico," she said. "We need to keep those jobs here in the United States." After the announcement, [President Trump](https://twitter.com/realDonaldTrump/status/1067494680416407552) and Prime Minister [Justin Trudeau](https://twitter.com/JustinTrudeau/status/1067082236686753792?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1067082236686753792&ref_url=https%3A%2F%2Fwww.cnn.com%2F2018%2F11%2F26%2Fbusiness%2Fgm-oshawa-plant%2Findex.html) both took to Twitter to call reductions in the U.S. and Canada a massive "disappointment." Since then, the two leaders have spoken on the phone to discuss the issue. While pundits and industry analysts debate whether the era of the personally-owned car is coming to an end ー and perhaps where American automakers fall in the new mobility hierarchy ー the effects of GM's decisions will still weigh heavily on local communities that depend on it as the anchor business. And that, in turn, makes it a political issue for the president. President Trump dispatched his chief economic adviser Larry Kudlow to meet with Barra. As for the future of the auto-industry, Rep. Dingell said she understands the harsh realities her constituents are facing: "It's no longer a car industry, its a mobility industry. And the mobility industry is changing." "The model is going to change but you are still going to be building vehicles and there will be new jobs," she said.

Share:
More In Politics
UNHCR Plans Ahead for 4 Million Refugees as 1 Million Already Flee Ukraine
The United Nations High Commissioner for Refugees (UNHCR) has reported that an estimated one million people have fled from Ukraine since Russia invaded. Christopher Boian, senior communications officer at UNHCR, joined Cheddar News to report on the current refugee crisis and what the world might expect if conditions continue to worsen. "We have planning figures that forecast as many as four million people could be forced to flee Ukraine," he said. "But that very much depends on how the conflict underway in that country at the moment unfolds in the days and possibly weeks ahead."
Study Shows Corn-Based Ethanol Could Be Worse for Climate Than Gasoline Alone
Under the U.S. Renewable Fuel Standard (RFS), corn-based ethanol has been mixed into gasoline sold at pumps in the U.S. since 2005, when a policy was enacted aimed at reducing emissions. Corn-based ethanol had been thought to be a relatively greener energy source compared to other biofuels, but now, a new study published in the Proceedings of the National Academy of Sciences reports it may be actually worse for the climate than straight gasoline. Tyler Lark, an assistant scientist at the University of Wisconsin-Madison's Center for Sustainability, joined Cheddar News' Closing Bell and discussed the pushback against the study. "Essentially when you need to produce more corn to meet the demand for use as ethanol as fuel, farmers respond and they switch more crops like soybeans and wheat into corn," Lark said. "They also bring more land into production, so things that used to be pasture grassland, and both those activities are associated with increased greenhouse gas emissions."
Bethenny Frankel's BStrong Providing Aid Efforts for Ukrainian Refugees
In the past few years, Betthany Frankel has made a major name for herself as a philanthropist after founding the BStrong initiative, which has provided relief to people impacted by natural disasters as well as the COVID-19 pandemic. Now, BStrong is shifting its focus to Ukraine, raising millions of dollars in donations for those impacted by Russia's invasion. Bethenny Frankel, the founder of BStrong, joins Cheddar News' Closing Bell to discuss.
Load More