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GM warned Trump China tariffs hurt jobs & now complains it's happening

Discussion in 'Economics, Business, and Taxes' started by Lobato1, Nov 27, 2018.

  1. Lobato1

    Lobato1 Mayor

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    The ILLEGAL Pervert Commander in Chief is railing against GM's decision to close plants & axing 14,000 jobs, events triggered by his trade war, however GM had warned earlier this year that tariffs would hurt jobs & wages.
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    BTW:
    Expect Ford & Honda to follow;
    Steel & aluminum tariffs imposed by the Trump administration have cost Ford Motor Co (F.N) about $1 billion in profits, its chief executive officer said on Wednesday, while Honda Motor Co (7267.T) said higher steel prices have brought “hundreds of millions of dollars” in new costs.
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    My reference on GM:
    https://www.businessinsider.com/chi...jRucoj8rI-Ndkdv9IjyySadfVAEySAZCKY5hsVlTv76Kc
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    My Reference on Ford:
    https://www.reuters.com/article/us-...d-1-billion-in-profits-ceo-says-idUSKCN1M61ZN
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    . Bankrupt Trump.

    Sad.
    Best Regards
    Lobato1
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    Last edited: Nov 27, 2018
  2. Caroljo

    Caroljo Senator

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    GM still owes us taxpayers over 11 billion from the bailout! My son works at GM as an electrician. I can tell you, they couldn't care less about their employees. I think they're using the tariffs as an excuse.
     
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  3. Lobato1

    Lobato1 Mayor

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    BTW:
    Expect farmers to now be forever on welfare & voting Republican till doomsday now that they have lost China's markets for their produce as China has now contracted alternate sources suck as Brazil for their needs.
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    Sad.
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    Best Regards
    Lobato1
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    Farmers On Welfare.
     
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  4. Lobato1

    Lobato1 Mayor

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    Tarp2 to GM was 6.7 billion bucks at 7% interest & on April 2010 GM completed the repayment of its loans from the U.S. & Canadian governments by paying the outstanding balances of $4.7 billion & $1.1 billion respectively.
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    My 1st Reference:
    https://www.reuters.com/article/us-...t-loss-on-bailout-falls-idUSTRE63K56920100421
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    Best Regards
    Lobato1
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  5. Caroljo

    Caroljo Senator

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    Well, there's conflicting stories about this. I don't believe any of the automakers should have gotten bailouts. I didn't think so at when it happened and still feel the same. According to this, we didn't HAVE TO bail them out.

    If there had been no bailout, Ford, Toyota, and Honda would have picked up even more market share. Since they had U.S. plants, they would have increased jobs for Americans once the recession was over. The loss of GM would be like the loss of Pan Am, TWA, and other companies that had a strong American heritage but lost their competitiveness. It would have perhaps tugged at the heartstrings of America but not really hurt the economy. As a result, the auto industry bailout was not critical to the U.S. economy, like the rescue of AIG or the banking system.
    https://www.thebalance.com/auto-industry-bailout-gm-ford-chrysler-3305670
     
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  6. Lobato1

    Lobato1 Mayor

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    As the French say, with enough “IFs” you can put Paris in a bottle.

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    The bailout created 341,000 new jobs in a car industry of 624,000 in June 2009, with dealership employing 1.612 million in February 2010 in addition to other related supporting industry (steel, gas, tires, etc., etc., etc.), & services (e.g. an income earner & his family do not live on thin air & need food, lodging, cloths, transportation, schooling, medical & even a restaurant now & then, vacations, etc., etc, etc.), that in it’s day were at some three times those employed by the auto industry alone.

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    Taking into account that Ford also receive a ton of money to pay off it’s creditors that in the middle of the greatest financial disaster since the Great Depression & with banks refusing to lend money, Ford’s creditors would have leapt into whatever they could be the 1st to salvage, meaning Ford too would have gone under no matter what the writer of your reference upbeats on Ford.

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    That would have left only the two Honda & Toyota .

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    It’s a known fact of life that unemployment creates more unemployment & this in turn creates more unemployment & we saw our unemployment rate skyrocket from less than 4% of the Clinton era to almost 10% by the end of 2009 & had those some 4 or 5 million jobs not been saved, our country would have seen unemployment rates on a par with the Great Depression & more than likely one of the two foreign car manufacturers, Honda or Toyota would have folded up shop leaving one manufacturer.

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    BOTTOM LINE

    “IF” the biggest Word in the dictionary

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    Best Regards
    Lobato1
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    Unemployment Feb 2009 to Nov 2015.

    Unemployment Rate Peaked to 10% October 2009
     
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    Last edited: Nov 28, 2018
  7. PhilFish

    PhilFish Moderator Staff Member

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  8. Lobato1

    Lobato1 Mayor

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    Reading your reference the bottom line is that GM in general is doing very well by transferring there manufacturing overseas to elude the present trade war & consequent tariff increases on both sides.

    & if I read your reference right upon those billions upon billions GM lost with the Opel deal, your reference states:

    About those Opel-related special items
    As noted above, GM took a total of $5.4 billion in one-time charges related to the Opel sale. The total charges were a bit lower than the company's forecast of $5.5 billion to $6 billion.

    Best Regards
    Lobato1
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  9. PhilFish

    PhilFish Moderator Staff Member

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    No. My interpretation ... Their profits are substantive enough that relatively speaking they could absorb the tariff impact easily, considering their multibillion dollar losses elsewhere.

    I.e it is not the proximate cause by any stretch, just slanted spin.
     
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  10. Caroljo

    Caroljo Senator

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    Your link is from 2010. I came across this from 2014, also Reuters.


    WASHINGTON (Reuters) - The U.S. government lost $11.2 billion on its bailout of General Motors Co (GM.N), more than the $10.3 billion the Treasury Department estimated when it sold its remaining GM shares in December, according to a government report released on Wednesday.
    The $11.2 billion loss includes a write-off in March of the government’s remaining $826 million investment in “old” GM, the quarterly report by a Treasury watchdog said.
    https://www.reuters.com/article/us-...W-9HYL5Ir_oSWPypl6eKBViKEtylkEG70huDfd6E5u9IY
     
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  11. Lobato1

    Lobato1 Mayor

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    In the case of a bankruptcy, the write-off is uncollectable debt that the ILLEGAL Pervert Commander in Chief has taken advantage of multiple times.

    In this case, the government chose to bare the responsibility to rescue the creditors that one way or another would have been lost had GM gone under.
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    Best Regards
    Lobato1
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  12. Lobato1

    Lobato1 Mayor

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    The norm in business is to make a profit & not absorb losses Remember???
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    Best Regards
    Lobato1
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  13. Lobato1

    Lobato1 Mayor

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    BTW:
    That was not my url reference per se, it came from PhilFish & I responded in this debate that I find very interesting
    Best Regards
    Lobato1
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  14. PhilFish

    PhilFish Moderator Staff Member

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    Um yes. Yet gm has ample capital to absorb multiple billions...and did. How is a billion in tarrifs the death knell...
     
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  15. Constitutional Sheepdog

    Constitutional Sheepdog ][][][%er!!!!!!!

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    Sad how you spew ignorance
    The buyouts and layoffs among GM's salaried workers are part of what the automaker has called a transformation of its workforce. At the same time GM executes some 6,000 layoffs among salaried workers, it is hiring aggressively in emerging automotive disciplines like software development, batter and fuel cell technology and autonomous vehicle development.

    GM Cruise LLC, the automaker's self-driving vehicle development arm based in San Francisco, recently surpassing 1,000 workers. A new office in Seattle opening early next year will also add up to 200 new workers.

    "We are going to continue to hire," Barra told reporters Monday. She says GM is focusing harder on the "skillsets of the future"

    "You will see us having new employees join the company as others are leaving," she said. "We still need many technical resources across the company."
    https://www.detroitnews.com/story/b...off-nearly-6-000-salaried-workers/2115695002/
     
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  16. Lobato1

    Lobato1 Mayor

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    For starters nobody ever said tariffs no matter how high would be the death knell of GM for the simple reason that GM is making appropriate adjustments to keep optimizing profits & minimize loses that is what their stock holders demand of GMs CEO, including me with my two cents worth of GM stock in my 401k (now an IRA).
    Best Regards
    Lobato1
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  17. Lobato1

    Lobato1 Mayor

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    To your low, low ball 6,000, you forgot the additional 18,000 salaried worker buyouts GM offered on Halloween plus the 14,000 expected layoffs in the five planned plant closures from your reference.
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    Lobato1
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    Last edited: Nov 30, 2018
  18. Constitutional Sheepdog

    Constitutional Sheepdog ][][][%er!!!!!!!

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    GM isn't laying people off because of tariffs that was the point
    You overlooked this
    "We are going to continue to hire," Barra told reporters Monday. She says GM is focusing harder on the "skillsets of the future"
     
  19. Lobato1

    Lobato1 Mayor

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    From your 1st upbeat post above & I quote you in part verbatim:
    GM Cruise LLC, the automaker's self-driving vehicle development arm based in San Francisco, recently surpassing 1,000 workers. A new office in Seattle opening early next year will also add up to 200 new workers.

    Versus close to almost 40,000 layoffs from your reference. Has it dawned on you that GM's PR Barra is doing her job????
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    Best Regards
    Lobato1
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    Last edited: Nov 30, 2018
  20. Constitutional Sheepdog

    Constitutional Sheepdog ][][][%er!!!!!!!

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    They are going to continue to hire I thought you claimed the layoffs were due to tariffs?
     

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