*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.
California Rep. Ro Khanna has a novel idea about how to solve the government shutdown: call in some experts."Why don't we get an independent group of experts? The President appoints two people. The House appoints two people. The Senate appoints two people," the Silicon Valley-based Democrat suggested. "Put them in a room ー six folks ー and have them come up with proposals that are going to be 6-0."
With Los Angeles public schools ending a third day without their striking teachers, a deal between the union and the district remains elusive, according to Joseph Zeccola, a 2018-19 L.A. County Teacher of the Year and one of more than 30,000 educators currently protesting in the country's second-largest school district. "We're at a standstill," Zeccola told Cheddar from the picket line on Wednesday. "The offers right now have not been good."
The U.S. needs to work on improving its relationship with China as well as stabilizing its own economy by ending the government shutdown, JPMorgan Chase chairman and CEO Jamie Dimon said on Wednesday.
The ongoing government shutdown will hurt franchisees, Fat Brands CEO Andrew Wiederhorn told Cheddar on Monday. The closure of the Securities and Exchange Commission may inconvenience companies like Fat Brands, which need access to the public markets, but its franchisees, who run outposts of Fat Brands restaurants like Fatburger and Ponderosa Steakhouse, can't seek loans or expand their businesses. "There is a trickle down effect to us, but it's pretty small. I think really it affects the small business owner ... and it's coming out of their pocket," Wiederhorn told Cheddar.
Airline passengers are facing long security lines as unpaid TSA officers have begun calling in sick due to the government shutdown. Staffing shortages led to the closure of an entire terminal at Houston's George Bush International Airport. Local Houston TSA President, Freddie Cuellar, says closing the terminal is the best way to utilize the staff who are able to come to work.
These are the headlines you Need 2 Know for Wednesday Jan. 16, 2019.
President Trump has taken the government hostage, and House Democrats refuse to negotiate with a hostage-taker, House Majority Leader Steny Hoyer (D-Md.) told Cheddar on Tuesday. "This is not about the wall, it's not about health care, it's not about ... spending. This is about a promise the president made, and he has now taken the government hostage," Hoyer told Cheddar's J.D. Durkin as the 25th day of the partial government shutdown dragged to a close.
Canopy Growth is planning its entry to the U.S. on the back of the new Farm Bill ー and aims to establish a hemp "hub" in New York, according to CEO Bruce Linton."New York is setting up a pretty progressive approach and we have an earlier first license under that system so we can actually create a hub," Linton told Cheddar on Tuesday.
As the government shutdown drags on, calls from some conservative corners have increased for President Trump to declare a national emergency in order to get federal employees back to work while diverting funds to build a border wall. However, conservative radio show host Erick Erickson is cautioning the president against doing just that.
The cannabis industry enjoyed a productive 2018, but the government shutdown may be turning the industry's green light to yellow. Cannabis stocks are up overall, but according to Debra Borchardt, co-founder and CEO of Green Market Report, the government shutdown has left some farmers and companies in limbo.
