*By Carlo Versano* Politicians on both sides of the aisle united with labor leaders on Monday to slam GM's announcement that it would cut more than 14,000 jobs ー a combination of factory and office roles ー and put five plants on the chopping block. President Trump said he told General Motors CEO Mary Barra that he was not pleased with the decision, which was driven by shifting consumer preferences, slowing sales, and a sea change in mobility. "The United States saved General Motors and for her to take that company out of Ohio is not good," Trump told reporters on Monday. "I think she's going to put something back in soon." Before he was inaugurated, Trump had [praised](https://twitter.com/realdonaldtrump/status/821415698278875137?lang=en) GM ($GM) for a "big jobs push back into the U.S." Ohio Sen. Sherrod Brown, who is publicly flirting with a run for the Democratic presidential nomination in 2020, said the move was "corporate greed at its worst." The UAW said the decision would "not go unchallenged," while Larry Kudlow, Trump's chief economic adviser, summoned Barra to the White House in a sign of how seriously the White House takes the issue of major cost-cutting at an American automaker. But for Barra, it made sense to initiate a massive forward-looking pivot at the automaker when the economy is healthy, rather than later, when it may not be ー a lesson GM learned the hard way when it nearly collapsed during the financial crisis. "We are taking this action now while the company and the economy are strong to keep ahead of changing market conditions," Barra said in a conference call with investors. They responded favorably, sending shares of GM up as much as seven percent Monday. With gas prices low, buyers have sought out bigger cars, including pick-ups and crossover SUVs, which has put pressure on carmakers like Ford ($F) and several of GM's brands, like Cadillac, Buick, and Chevy. Earlier this year, Ford said it would kill off its sedan lines in the U.S. due to low demand. That's also happening amid a broader change in the very foundation of mobility as rideshare partnerships and autonomous and electric development take on a larger role and drivers cast aside legacy automakers. GM explicitly mentioned investments in autonomous and electric R&D in its announcement.

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More