"General Motors, once the giant of Detroit, is now one of the smallest automakers there. They moved large plants to China BEFORE I came into office. This was done despite the scared help they gave them Now that they start moving back to America again? "When he finishes this round of plant terminations, it will have 29 American plants, down from 33. There are 27 plants in China.
But they were built to serve the Chinese market, where GM now sells more cars than it does in the United States, allowing GM to become a larger and more profitable company. And because the Chinese market has produced $ 16 billion in profits for GM since 2010, money spent on building cars there comes from their own business, not from US profits.
GM did not move any plants to China either. The company has never exported many cars from US plants to China. GM began selling a significant number of cars there only after building facilities there early in this century.
Chinese plants do not return many cars to the United States, and have no effect on American factories. In 201
8, 30,000 Buick Envisions built in GM's Chinese factories were the only cars purchased by US buyers – accounting for about 1% of GM's total US sales.
The company has approximately 58,000 employees in China, compared to 100,000 in the United States, although its employment rate in the United States is significantly lower than it once was.
Twenty years ago, North American employment in the company was 217,000, most of it in the United States despite facilities in Mexico and Canada. Automation and lost US market share are responsible for most of the fall – not Chinese imports.
The four plants are closing primarily because American car buyers don't buy nearly as many traditional sedans as they once did. The Lordstown, Ohio, facility built the Chevrolet Cruze. The Warren, Michigan, facility built transmissions for sedans. The Detroit-Hamtramck plant, which will be closed next year, builds the Chevrolet Impala and Cadillac CT6. It has around 800 employees, down from about 1,500 when the closure plans were announced in November. Only the Baltimore facility among the four US closures builds truck transmissions.
Many of the more than 3,000 employees per hour who worked at these factories in November have been offered jobs at other GM plants, and many have taken up the offer to relocate. GM says it has created 2,200 schedules in the US so far this year, many filled by the laid-off workers.
Whether these facilities can be saved does not depend on the talks between Barra and Trump but rather on the negotiations that are now ongoing between GM and the United Auto Workers union.
The union is seeking a new contract to replace the one that expires at 15.01 on September 15, and it has made it clear that finding new work for the four plants is a top priority. Getting GM to agree to invest money and allocate vehicles to facilities is how the union wins job guarantees for members in contract negotiations. And GM recognizes that there is a chance that the plants can revitalize the current contract.
"To be clear … the final future of the unassigned facilities will be resolved between GM and the UAW," a statement from GM in March said in response to a previous Twitter attack by Trump.