General Motors In The Clear After Labor Case In Mexico Reaches Conclusion
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General Motors no longer faces a threat of having U.S. trade tariffs applied to trucks built at its Silao Assembly plant in Mexico after a labor row at the plant reached a conclusion last month.
According to Reuters, the U.S. Trade Representative’s (USTR) office confirmed this week that GM will not have tariffs applied to trucks built at the Silao Assembly plant. The federal government opened a case against the automaker in May after Mexican labor officials found irregularities in the union voting process at the plant, including discarded ballots.
Mexican officials later ordered the Miguel Trujillo Lopez union to hold another vote before August 20th or face losing the Silao plant contract. U.S. and Mexican labor officials oversaw the second vote on August 17th and 18th, which ended with workers rejecting the union contract proposal.
The labor row made headlines in both the U.S. and Mexico, as it was the first real test of new labor rules stipulated in the United States Mexico Canada Agreement, which replaced the former North American Free Trade Agreement (NAFTA) following a ratification vote in March of last year.
Under the USMCA, a plant can have its tariff-free status revoked if it is found to be in violation of the rules of the agreement. This would have applied a 25 percent import tariff to all trucks that were produced at the Silao Assembly plant and shipped into the United States, which would either raise the price of the trucks dramatically or cut into GM’s profit margins on each unit built.
The GM Silao plant builds the Chevy Silverado 1500 and GMC Sierra 1500 pickups. The light-duty pickups are also produced at the GM Fort Wayne plant in Indiana.
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So have them build me a new Avalanche, preferably a phev. I won’t ever buy any other GM vehicle.
Viva la 🇲🇽 🇲🇽🇲🇽🇲🇽
I wouldn’t buy one made in Mexico. I watched 7 Mexicans on a street in Chicago strip all the usable parts off a ‘60 Oldsmobile in 1962 in 25 minutes, but I don’t know how good they are at putting one together.
they are so good putting all together , I used to work in that assembly plant in mexico…….. and the quality is quite better than US,…. but you are not prepared for this conversation
Robert – So the Marxist in the White House caused all those problems in less than 9 months?!?! Go back to the previous fascist to see what runaway capitalism can do.
The global chip shortage is based upon supply and demand which caused vehicle production to drop ergo few vehicles on the lots.
Their stock is up over 50% in the last year which should satisfy Wall Street and will explode when full production can resume.
Maybe we should get rid of those Marxist programs like Social Security and Medicare and let everyone fend for themselves?
Whining and wishing it was 1957 won’t make it better today. Build the middle class and you build strength in the nation.
JoeM- here’s a rundown of what that fool in the white house has done: doubled gas prices, practically doubled a lot of food products, caused 13 American service men and women to needlessly die,, stopped the brilliant Trump plan of stay in mexico for migrants, (border security) allowed 1.6 million illegal invaders (thus far) shut down a pipeline construction, killed 10 innocent Afgans with a drone strike including 7 children,,, i could go on ….. there’s no hope of getting rid of this idiot moron because the next 2 in line are as stupid as this idiot, you should regret voting for him but i doubt that is the case
Has gm ever lost a legal case? They must either have sold their souls to the devil or have the best lawyers in the world. I’m beginning to believe “Resistance is futile”.
Hi Robert – Trump is only a symbol of right-wing hysteria. The truth is much deeper and a sad commentary on humanity.
I’m a self-made, successful businessman who ALWAYS offered healthcare coverage to my employees. You are playing a zero-sum, us versus them game that won’t work in a world where information is shared among everyone vs the privileged.
I don’t need your wishes for luck. I created my success without crushing people. We live in a home that overlooks the Pacific, classic cars in the garage, and a new C8 on order. Oh, and a lot of friends who share the same principles of love for each other and success for all. May you one day escape from your self-imposed prison of “I got mine, screw you!”