Barra is stuck on GM tension plans in DC
Washington – General Motors Co. Chairman Mary Barra was stuck with plans to leave idle with five factories, put down 6000 salaried employees and force the job to 3,300 hours of workers when she met Wednesday with Ohio's US senators and several of Michigan's recently elected US members.
Talks with journalists after a closed barrage meeting with Barra at the US Capitol on Wednesday, Ohio Sens said. Sherrod Brown and Rob Portman that the GM boss committed to attempting to speed up negotiations with United Auto Workers Union about the future of the company's recently "undeveloped" plants, including the Lordstown Assembly plant in northeastern Ohio. But they said Barra did not reverse the course of the decisions they would have preferred.
"We both want to ensure that both the company and UAW speed it up as much as possible and make a decision to provide some potential security," said Portman, a Republican. She agrees that there is a possible opportunity. She also told us that she should keep an open mind, but she does not want to increase expectations.
Brown, a Democrat who is mentioned as a potential presidential candidate, said about the Lordstown facility: "Should they bring an electric vehicle? Should they retoole their plants and maybe look at one of their SUVs that move in. This plant? They can do it. They have been the recipient of a tax bill that has produced some dollars to reinvest. Some of them are stock purchases, but much can be reinvested in this factory. "
Legislators are furious at GM to move to stop production next year at Lordstown, at its Detroit Hamtramck and Warren Transmission facility in Michigan , At the Oshawa Assembly in Ontario and at Baltimore Operations in Maryland. The work will stop next year on predetermined dates, but plants will not officially close. The future of these facilities will be decided during 2019 negotiations with United Auto Workers Union.
The company plans to close down nearly 6000 paid workers next year after a buyout program last month had only 2,250 takers, according to a note sent to staff by CEO Mary Barra and obtained by The Detroit News. Salaried buyouts and layoffs together will affect 8,000 North American employees and a number of global leaders, none of them being part of senior leadership.
Barra on Wednesday at the same press conference defended the decision in response to market conditions that have resulted in a changing US consumer preferences that have made sedans hard to sell.
"We are in an industry that transforms faster than I have ever seen in my 38 year career," she said. "What we are trying to make is that General Motors is strong and that we are in a leading position with technologies such as electrification and autonomous vehicles and connectivity, because that's what the customer wants. This is where the industry is going."
Barra refused criticism of GM's decision calling on the company's receipt of nearly $ 50 billion in federal aid in 2008 and 2009 auto bailouts, as the company's notes have repaid.
"Since 2009, we have invested $ 22 billion in the United States and in the last couple of years we have invested several billion dollars and we continue to do it," said Barra.
"We will always be grateful for the help as the US government gave General Motors, and we try to make sure we are good corporate citizens, and continue to deliver jobs and provide cars and transportation that consumers want in this country, "she continued." That's what I think is it most responsible thing we can do to thank the US taxpayers for what they did for us. "
Barra also met Wednesday with incoming US representatives from Michigan. Rashida Tlaib, Haley Stevens, Elissa Slotkin and Andy Levin, all Democrats, will Be in Boston for training and can not attend Barra's meeting Thursday with Michigan legislators in person. The Michigan Congress delegation meets her at 2 pm.
Tlaib said in a statement after the meeting: "From the 1,300 houses, kir ker and shops in Poletown that were seized and bulldozed to build the Detroit Hamtramck facility, to $ 51 billion public bailout that lost hard-working taxpayers over $ 11 billion, we paid a very steep price to place and keep GM floating .
"Now, when we struggle to rebuild our regional economy and create live payroll jobs, GM pays back. Our victims and investment by slipping thousands of jobs and closing the plant a whole neighborhood was demolished to build," continued Tlaib. " I will always be in solidarity with workers and for what is right and this is simply wrong. GM's announcement confirms my obligation to require binding community agreements when a wealthy company accounts for public grants. "
klaing@detroitnews.com
(202) 662-8735
Twitter: @Keith_Laing
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