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.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
