Lawmakers Unite to Oppose GM Plant Closures, Layoffs
*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.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
