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2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >
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According to Reuters, US President Donald Trump criticized General Motors in a Twitter post, which probably read: "General Motors used to be a giant in Detroit, but now it is one of Detroit's smallest automakers." GM moved major factories to China before I took office, and they did it despite U.S. assistance, and now they're moving back to the U.S.?"
CNBC quoted official and industry data on the same day, but pointed out that some of Trump's tweets about the Detroit automaker were misleading or inaccurate.
GM remains the largest automaker in the United States, and GM remains the largest automaker in the United States by sales. The company says it employs nearly 100,000 people at 132 locations in 27 states.
The investigation also revealed that GM employed about 46,000 UAW members and that the company was saved from bankruptcy by restructuring with financial relief from the U.S. government. Over the past 40 years, GM has slashed its U.S. workforce.
However, GM declined to comment on the tweet. But the company said in a briefing note that "GM's operations in China do not threaten U.S. jobs." The company notes that its joint ventures in China have delivered $16 billion in equity gains to GM since 2010, while GM has invested $23 billion in its U.S. operations since 2009.
Since taking office, Trump has never forgotten American manufacturing, and General Motors has undoubtedly become a thorn in the side. Trump has attacked GM for making cars in Mexico and for shutting down plants in Michigan, Ohio and Maryland, and threatened to cut GM subsidies in retaliation.
In November, GM said it would cut production of slow-moving models and lay off workers in North America to focus more on electric and self-driving cars as the traditional car market shrank. GM will lay off 15 percent of its workforce, or 14700, by the end of the year and plans to close three plants in Detroit and Warren, Ohio, and parts plants in Maryland and Michigan.
In 2018, GM sold 3.6 million vehicles in China, accounting for 43% of global sales, earning $2 billion in equity gains.
GM is betting heavily on China's electric car market as it cuts jobs and closes factories in the United States. According to the plan, GM plans to launch at least 10 new electric or hybrid vehicles to the Chinese market by 2020. GM aims to sell 1 million electric vehicles annually by 2026.
CEO Barra said that despite recent industry and economic challenges, China's auto market still "has constructive prospects and long-term growth momentum."
More than 20 new and upgraded models will be launched in China this year, she said, adding that sales in China's industry-wide auto market could reach 30 million vehicles a year in the future.
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