Politicians are mad at General Motors, investors are pleased with General Motors, Carlos Ghosn's arrested blindside French, and more waiting for you tomorrow morning 27 November 2018.
1st Gear: Oh Hello, Remember that Bailout? And the tax cut?
Man, remember when General Motors got a massive federal rescue after declaring Chapter 11? And then was the big tax break from last year's GOP tax bill, where did the money go?
Apparently not against American jobs when the company announced that it would close several factories in Ohio and Michigan (and Canada, not America) and cut around 15,000 jobs yesterday.
People are pissed off. Politicians in particular.
Both Democratic and Republican politicians are mad, according to Bloomberg. Ohio Democratic Senator Sherrod Brown, tweeted that although GM had "gotten a massive tax break" last year, it still failed to invest the money in American jobs. He called the decision "corporate greed at its worst."
Democratic representative Tim Ryan, whose district includes the Lordstown facility, wants congressional hearings about how GM used tax cutbacks.
From the story:
"The American people deserve to know about the tax cuts they paid to be used to inflate corporate profits at the expense of their financial security and survival of American workers, "wrote Ryan in a letter to the leaders of the House Ways and Means Committee. He urged them to investigate the outcome of this corporate Tax Handout.
And Ohio Republican Senator Rob Portman (as Bloomberg points out, helped GM to receive these corporate taxes last year), said: "I am deeply frustrated by General Motors' decision. "
Democratic Representative Joe Kennedy III Tweeted :
And finally, a progressive organization called Not One Penny estimated that GM spared $ 500 million from tax cuts. Spokesman Ryan Thomas said
"General Motors' decision to give up their work constitutes the bad company's behavior Republicans in Congress have stimulated for generations. Instead of using its massive tax savings to boost employees' salaries or invest in their workforce, GM is cutting-edge workers and cutting jobs to boost profits and further enrich shareholders. "
Of course, Michigan and Ohio are the two states that swung for Trump during presidential elections in 2016. During his gatherings, he promised to" stand up "for American workers and bring jobs back from abroad. Let's see what the president said in 2017 :
Trump talked about seeing shuttered factories from his motorcade – "Great, once amazing work-producing factories" – with first lady Melania asking what had happened to the now rusting relics that once formed the heart of the Ohio steel industry.  "I said that they have left Ohio. They all come back. They all come back. Do not be moving, do not sell your house, "said the president to the happy audience.
So much for that! Of course, the president is steaming on GM's CEO Mary Barra, withdrawn by the Wall Street Journal here:
On Monday, Mr. Trump told Barra that she should stop making cars in China and open a new plant in Ohio to replace the one who ends the production.
"They are better, so good, open a new plant there very soon, "Trump said in an interview with The Wall Street Journal on Monday, and noted that he was talking to Miss. Barra Sunday evening.
" I love Ohio, "said Trump. I told them:" You're playing around with the wrong person. Trumbull County, where the Lordstown Factory is, Trump gave 51 percent of the vote after 60 percent voted for Barack Obama in 2012.
There is a lot of yelling, but it seems like GM's mind is made up.
2. Gear: It's Only Business
While GM's cost-saving and restructuring decisions have hassled employees and elected officials, investors and analysts seem quite pleased with it.
When news about its new direction broke yesterday, stocks rose 4.8 percent. Apparently, people are pleased with this "new GM" approach to dealing with issues.
Maryann Keller, an independent auto analyst, and who wrote a lot about GM, believes this is part of the business, according to Bloomberg. She said:
"Earlier, GM management did not respond so quickly – they went through a kind of slow rate crash culminating in bankruptcy in 2009, and it was a hard-to-learn lesson. This is a cyclically, highly competitive, slow-growing business . You can not continue to produce unprofitable cars, especially when you make crazy investments in mobility business with no potential for profits in the foreseeable future. "
In fact, when you look at the market, GM is not that different from what Ford made, changing production lines for SUVs, electric cars and autonomy and reducing costs because no-one buys small sedans anymore. It's a radical move, but one that can save it from a repeat of 2009, which was a financial crisis and bankruptcy.
Nevertheless, workers are losing their jobs as the investor class rises, but it's the game!
3. Gear: Let's give socialism a try, eh?
And now, something you never see in America: why not just nationalize GM?
"It's time," David Olive holds in Toronto's The Star in response to GM closing his Oshawa collection facility in Ontario, "to give serious thought to creating the country's first Canadian-owned automaker. "
He continues to point out that Canada has built cars beyond Toyota and houses independent and innovative auto parts giants. These companies serve people all over the world, while Ford, FCA, GM, Toyota and Honda mostly make for the American market.
Olive solution? Canada buys GM Canada. By his editorial:
By purchasing GM Canada in its entirety, Canada would own a large vertical integrated automaker. GM Canada operates assembly and engineering departments, engineering laboratories, distribution centers, a nationwide dealer network and a cold weather testing center in Kapuskasing.
A Rechristened GM Canada will design cars for Canadians. And to learn from it, it would design winning vehicles for niche markets worldwide and become a geographically diverse company. It would export to both large and emerging economies. The latter is the world's fastest growing market, where "Canada" has high and favorable brand recognition.
And an independent Canadian automaker will no longer be yoked with the production of marginal GM products, which has repeatedly been the fate of GM Oshawa. 19659015] It is true that Canada does not have its own automaker, despite building everyone else's cars. Olive believes that a Canadian automaker would not turn over Canadians as a shitty American just did. He concludes,
According to the old expression, one acts or acts. We have given GM the opportunity to respond to us in unpleasant ways long enough.
There are other examples of harmful branching on Canada. But for now, let's make an example of GM.
You can read the rest of the fire here.
4. Gear: It's Complicated & # 39; s
Back to Nissan-Renault! We should also not forget Carlos Ghosn after all the action-packed GM news from yesterday. If you woke up very surprised at the news of his arrest after accusations of allegedly underreporting his income and also using corporate funds for personal reasons, you were not alone.
Obviously attacked the blindside French, according to Automotive News Europe. From the story:
Ghosn's arrest appears to have come as a surprise to Renault and the French government, Renault's largest shareholder. During the past week, both have entered into an injury control mode, with the government expressing its support for the Renault-Nissan-Mitsubishi Alliance, and Renault appoints a CEO to assume Ghosn's duties and begin an internal audit to investigate Ghosn compensation.
However, in particular, the government or Renault officials have not offered a personal defense by Ghosn. Bruno Le Maire, the finance minister, said that Ghosn was unable to continue driving Renault, and he repeatedly expressed the hope that the Renault-Nissan-Mitsubishi Alliance – as he described as "indispensable" on Sunday, was conserved.
Of course, conspiracy theories also move around, which is always fun to think about. One claims that Nissan's CEO Hiroto Saikawa apparently found that Ghosn had "gathered too much power" and wanted to change the alliance more favorably against Nissan.
It would explain why Saikawa said that the arrest was not a "coup d" agency "during the press conference and how there is not much information about the charges against Ghosn.
However, a very large CEO / leader of a massive car company Just arrested! It's wild! Of course things will get complicated for a while.
5. Gear: At the same time at FCA
While everyone else is screaming at / about GM and the Renault-Nissan-Mitsubishi Alliance, Fiat Chrysler is trying to improve its margins by possibly building more cars in Italy.
Nameless sources said that the FCA would build a fleet of new cars in Italy, which could include Jeeps and some kind of Alfa Romeo SUV, according to Reuters. The plans are part of the strategy as Sergio Marchionne outlined before he died. From the story:
In its latest strategy unveiled in June, Marchionne promised to continue converting Italian plants to cutting out Alfa Romeos, Jeeps and Maseratis instead of smaller profitable mass market vehicles in an effort to preserve jobs and increase margins. 19659015] The Melfi factory in southern Italy is expected to build Jeep Compass and is already building Jeep Renegade. The compass will be Fiat Punto's replacement. The Pomigliano factory could continue to build Fiat Panda and can also get the new "Baby Jeep" that would cleave under Renegade for the European market. The Mirafiori factory in Turin can start to make the electric Fiat 500, but these plans are not final yet.
And Maserati's future Alfieri will probably be built in Modena, where the brand is based.
Fine, all good.
Reverse: Dancing With a Champ
On November 27, 2007, Brazilian race driver Hélio Castroneves and his partner, professional …
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Neutral: Is GM the bad guy here?
Or are these cutters and factory rods just business?