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GM CEO Mary Barra Meets With Flustered Politicians

General Motors’ decision to undergo a $6 billion restructuring isn’t sitting well with politicians. Last week, GM announced a plan that calls for an estimated 15,000 layoffs and the closure of five North American production facilities—four in the U.S. and one in Canada. As soon as news of the announcement ricocheted around the internet, politicians from both sides of the aisle came out in force to condemn GM’s proposition. 

Canadian Prime Minister Justin Trudeau criticized the Detroit automaker. Michigan Democrats and U.S. President Donald Trump appeared to read from the same script, condemning the announcement while making vague threats to revoke a litany of tax incentives and credits. The anger and frustration with GM reached such a fevered pitch that GM CEO Mary Barra met with politicians to calm divisive rhetoric and give the politicians a quick reality check. 

“I understand this is something that impacts the country and I understand that there is a lot of emotion and concern about it,” Barra said, according to Reuters. 

GM Mary Barra Update - June 2018

As receptive as Barra was, she pulled no punches on telling fuming politicians GM’s current reality. Sedan sales are falling. There’s no panacea to correct that right now. Consumers buy what consumers want, and sedans aren’t in vogue. Crossovers, SUVs, and trucks are. The idea of 15,000 jobs lost sounds devastating; however, GM and Mary Barra are urging possibly affected employees to look at moving to other GM production facilities. 

Barra also sounded bearish on the idea of moving Chevrolet Blazer production from Mexico to the U.S. so close the crossover’s launch, which could have eased the notion of closing plants here. The move would be too costly. Mary Barra did say during the meetings that GM planned on adding other products at U.S. plants. 

For all the talk, Barra did say she’d keep an “open mind” when it came to the possible plant closures. That’s not something GM can do unilaterally. It has to hammer out the details with the United Auto Workers union, which doesn’t want layoffs or closures. The political scrambling by both sides demonstrates what we should all know by now about politicians—they have no problem making promises for things they can’t control. And they have no problem being angry about it either.

Anthony Alaniz was a GM Authority contributor between from 2018 thru 2019.

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Comments

  1. Correction Mary. GM sedans aren’t in vogue and that is from years of making half baked mediocre poorly marketed and packaged crap that is priced as if it were top notch world class machinery. Consumers have lost trust and faith in your product. It’s as simple as that. And with this massive culling of passenger sedans don’t think that all the taxi, fleet, government and rental agencies and retail will automatically flock to your trucks and SUV’s as a result. Your sending a message of many years of continued incompetence that will have dire consequences in the future.

    Reply
    1. Miss Machete Mar Barra needs to understand BOTH sides of the political aisle hate her and it is time for her to MOVE ON…?

      Reply
    2. I have seen ads for Hyundai, Honda, and Toyota’s midsizers. I cannot recall the last time I saw an ad for GM’s.

      Reply
  2. the UAW have to get used to the fact GM can build more vehicles with less workers as the USW found out that more steel can be made with less people which means it can be sold at a lower price and the companies can make more profit

    Reply
    1. What part of “the American and Canadian TAXPAYERS” gave well over U.S. $12 BILLION to bail Miss Mary and her buddies out” do you not understand???????

      The lady and GM owe American (and to a lesser but still important extent Canadian) taxpayers, not the other way around.

      Reply
    2. I think the UAW can buy into the fact that automation will take jobs. What they and many Americans have a hard time buying is where the product is built.

      Reply
  3. GM is sending jobs to mexico ! plain and simple .only way to change there mind is for canadians and americans to voice their opinion and threaten to not buy GM ,AS for mexico they dont buy GM products in any numbers have low wages few enviromental laws and our govts need to act to stop the drain on jobs

    Reply
  4. one reason GM builds vehicles in mexico as they can be sold around the world with no import charges because mexico has free trade agreements with many countries that USA does not.

    Reply
    1. trump will fix that. oh wait … never mind.

      Reply
      1. Oh, look, Mr Sore Loser I Cant Get Over My Trump Derangement Syndrome TWO YEARS After the Election again…

        No wonder you lost the election to Donald J. Trump. He beat you, proving who is smarter in the end.

        Time to Move On, sore loser. We don’t need people like you holding back a new American revolution that protects Americans and American communities and jobs. Your hate and vile political bias can find a new country…China likes your type.

        Reply
        1. The sore losers are watching “all the best people” and their hairless leader being LOCKED UP.

          Reply
      2. “steve/ John Hart/ Old Trombone/ Reggie” it is people like you that make me thank the Lord everyday that Donald J. Trump is in the White House and Hillary Clinton will never ever be president.

        Sad part is you still don’t get it…

        Reply
  5. Mary is as flustered as the politicians. I say the people vote with their wallets and quit buying GM.

    Reply
    1. Hence why the American people voted in someone like Donald Trump. We are tired of the corrupt big government and all the globalist bs propaganda that only benefits a few elitist idiots like Machete Mary.

      We are AWAKE!

      Reply
      1. thank you, trump is the real man.

        Reply
  6. Mexican workers make a lot less (a lot) than American workers. Plain and simple.

    Reply
  7. Jobs in Mexico means less immigrants from Mexico looking for work in the USA?

    Reply
    1. Yup, George S., your kind of “logic” is exactly why Hillary Clinton won the White House…

      Oh, wait, forget about that…………………

      Reply
    2. On the contrary. If wages and benefits were so great in these Mexican plants, there should be ZERO illegals entering the US.

      Reply
      1. I know that’s right, illegal aliens have no rights in America.

        Reply
  8. GM has employed more Americans with good salaries and paid more money out in pensions then any other company in American history. And as far as building a quality sedan the Chevy impala is a far superior car over most other sedans, even cars that cost much more money… People just don’t want sedans anymore.
    Oh and I don’t now or ever have worked for GM. I own a very expensive sedan form another manufacturer that I do work for…..after renting an impala on vacation I really wish I could own One. I believe it’s the best all around car I had ever driven.

    Reply
  9. Instead of playing kissy face and Barra spewing a pre-made PR statement at the end of the meetings, these pols should have gotten in her face. States like Michigan and Ohio have GM stock in their pension funds. Just ask her straight up how much does GM want to repatriate the jobs since the company is too cheap to retool their plants. $200 million? $300 million? Face it, if a Lordstown, Hamtramck, or Oshawa closes, the economic impact will be just as much if not greater, and all the costs will be placed on the backs of the people in those areas. Is corporate welfare right? Of course not but Barra knows she has these workers and the respective cities by the short hairs.

    Reply
    1. How long do your think that would delay the product launch? It would be at least a year. And you have to train the employees as well. They are better off working a deal with the UAW to build a new product at the plants.

      Reply
      1. I am not talking about delaying product launch, I am just talking about tooling up a Hamtramck or Lordstown to build it here. Mexico could handle any overflow and world markets. Pair a five-seat Buick SUV off the same platform to slot between Envasion and Enclave and that would help deflect the costs.

        Reply
  10. Today, not a single TV is manufactured in the USA, all small appliances, shoes and most clothes, even stinkin nail clippers. Throw in smart phones, iPads and tablets, all computers and Dewalt tools. I can go on forever. When millions of these manufacturing jobs disappeared to mainly China why wasn’t the country up in arms? Oh yes, You can buy USA made guns, Whirlpool appliances and pillows.

    Someday, no sedans will be manufactured in the USA.

    Reply
    1. Who cares, George? So long as my Whirlpool cleans my dishes, and my Smith & Wesson protects my family and the baby Jesus, it’s all good. #MAGA

      Reply
  11. Sadly the “restructuring charge”, will likely be considered an extraordinary item and elimated from the targets for Mary’s 2018 incentive package and she will reap millions while the poor employees whose plant close get a lump of coal!

    Reply
  12. This article is from the June 2016 Holden page, posted by Scott3 giving reasons why Holden’s manufacturing was coming to an end and we should just accept and get on with it. Wise words indeed if you’re on the other side of the world. Now you will see the effect this has on your own country, workers and communities. It aint good folks!

    “Mike it goes back to what I have said before GM has to build cars people will buy not just want to buy.
    All the MFG are not getting out of the low cost high volume RWD sedans because their sales numbers are increasing.
    While I prefer the larger V8 cars this it is a no brainer if you want to make money and sell more cars you have to make the crap boxes.
    The customer does not have to be right he only has to be given what he will spend his money on. If that means GM needs a Mazda 3 fighter that is what it will take.
    I know what I say is not popular with enthusiast of which I am one but some times the truth hurts.”

    Reply
  13. Reply

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