GM Collapsing, Will Cut 15,000 Jobs

Manufacturing
Thanks, Obama!

Back in 2012, Vice President Joe Biden claimed that Barack Obama’s re-election slogan should be, “Osama bin Laden is dead and General Motors is alive.”

Six years later, it looks like only one of those is still true.

GM announced on Monday that it would shutter five auto manufacturing plants in North America, including four in the United States: Detroit, Michigan; Lordston, Ohio; Warren, Michigan; and White Marsh, Maryland. Doing so would also cut up to 15,000 jobs.

The factories will close at different dates, apparently between March 2019 and 2020.

But it’s not just factory workers who are losing out: GM also plans to slash 25 percent of executive positions as well, in an effort to save $6 billion.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

But Barra’s decision to gut GM hasn’t sat well with elected officials from the states affected.

Sen. Sherrod Brown (D-Ohio) slammed GM< accusing them of betraying the American people after hefty bailouts in 2009.

“The workers at Lordstown are the best at what they do, and it’s clear once again that GM doesn’t respect them,” fumed Brown, in a statement. “Ohio taxpayers rescued GM, and it’s shameful that the company is now abandoning the Mahoning Valley and laying off workers right before the holidays.”

Sen. Rob Portman (R-Ohio) also had choice words for Barra–saying he was “deeply frustrated” by GM’s decision and believed “GM let Northeast Ohio down.”

GM’s decision comes amid falling sales, in addition to rising production costs and rising interest rates.