Fiscal steering for road bumps ahead the gmu municipal sustainability project electricity physics definition

##########

Dropping a Fiscal Gear? General Motors has announced some of the details of its most significant downsizing since its bankruptcy a decade ago. Mayhap, ironically, if not certainly discouragingly, the announcement came as the continuing transformation of General Motors Co. is reaching the most pitiless stage Detroit has experienced since the industry’s epic bankruptcies nearly a decade ago. Last week, on the first day back to work from the Thanksgiving holiday, G.M. confirmed plans to cut its salaried workforce by 15 percent, to eliminate most of its car models, and to idle five plants in three states, two countries, and Detroit, its hometown. gas efficient suv 2014 The announcement seems to recognize that the market’s rotation out of traditional cars into self-driving cars, combined with the enormous capital requirements for developing and testing next-generation mobility technology, and it appears to have disrupted the status quo re-established after General Motor’s chapter 11 bankruptcy, auguring fewer union plants building more high-margin vehicles.

Chain Reaction? General Motor’s new restructuring, moreover, appears likely to increase pressure on nearby Ford Motor Co. to detail its own workout plans, eliminating as many as 20,000 jobs—even as the industry is on pins and axles awaiting next year’s national contract talks with the United Auto Workers—negotiations with regard to the future of at least four U.S. plants—a fate GM appears determined to make to avoid bankruptcy. CEO Mary Barra has been adroitly steering the corporation through its years-long transformation, seeking to make critical decisions to avoid a chapter 11 bankruptcy. gas dryer vs electric dryer hookups Indeed, despite accurate criticism that General Motors benefited from taxpayer-funded bailouts and a federally induced bankruptcy, her leadership team is moving ahead with a restructuring intended to leave General Motors leaner, younger, more profitable, and more intensely focused on driving profits higher to invest in the Auto 2.0 spaces of mobility, autonomy, and electrification—or, as David Kudla, the chief investment strategist of Mainstay Capital Management put it: “This is not a surprise: “Mary Barra is moving quickly to restructure the company for both a cyclical downturn in the industry and a secular change in the industry.”

Steering towards a Brighter Fiscal Future? Nevertheless, road ahead for both General Motors and the City of Detroit will be fiscally challenging, including not just dealing with the United Auto Workers, but also the Trump White House: by deeming its four U.S. plants “unallocated” for production, General Motors appears to be seeking to exert maximum leverage over national bargainers in next fall’s negotiations: each of the targeted plants is scheduled to end production prior to the expiration of the union contract next September: the plants in Michigan, Ohio, and Maryland are not closing, or at least until their respective fates are decided under terms of the national GM-UAW contract. The situation, if anything, is complicated by President Trump, whose companies have filed for Chapter 11 bankruptcy protection, which, like Chapter 9 municipal bankruptcy, means a corporation can remain in business while erasing away many of its debts, six such bankruptcies.

The fiscal situation is further complicated, politically, as the next Presidential election looms: President Trump’s road to the White House was driven, in large part, by voters in the industrial heartland states of Michigan and Ohio; in his campaign, he promised that auto jobs would be returned to their rightful home; however, since taking office, his trade wars with China and the European Union, as well as tariffs on foreign-made steel and aluminum, appear to have driven commodity costs higher, exacerbating the fiscal challenges to General Motors, Ford, etc. If anything, the fiscal road could steepen now that the President this week vowed to increase existing 10 percent tariffs on Chinese goods to 25 percent. Such a vow could create new hurdles to the future of the U.S. auto industry—and, thereby, the fiscal road ahead for the Motor City—or, as the Detroit News described the road ahead: “The continuing transformation of General Motors Co. is reaching the most pitiless stage this town has seen since the industry’s epic bankruptcies nearly a decade ago,” as the company confirmed, on the first day back to work from the Thanksgiving holiday, plans to cut its salaried workforce by 15 percent, to eliminate most of its car models, as well as to idle five plants in three states, two countries, and the City of Detroit. electricity definition wikipedia Maybe it will become the unMotor City.

The News put it this way: “Change is here. c gastronomie vitam The market’s rotation out of traditional cars, combined with the enormous capital requirements for developing and testing next-generation mobility technology, is overturning a status quo re-established after GM’s bankruptcy. The result is likely to be fewer union plants building more high-margin vehicles. Thus, even though the President told the Wall Street Journal: “They better damn well open a new plant there very quickly,” CEO Barra, not unlike former Detroit Emergency Manager Kevyn Orr, is steering her corporation towards its own transformation: notwithstanding accurate criticisms that GM benefited from taxpayer-funded bailouts and a federally induced bankruptcy, her leadership team is moving ahead with a restructuring intended to leave General Motors leaner, younger, more profitable, and more intensely focused on driving profits higher to invest in the Auto 2.0 spaces of mobility, autonomy, and electrification.

CEO Barra also recognizes that which the White House seems not to: generous profits in today’s global economy coming from one country are not enough to support a rapidly changing business model steeped in advanced technology. Indeed, today, General Motors sells more vehicles in China than it does in the U.S., a trend now several years old and unlikely to change; moreover, GM is doubling-down on what it calls its “growth” plants for trucks and SUVs, an action with certain implications for traditional car plants and their hourly workers which have, heretofore, been such a fiscal mainstay for the Motor City, where, now, six car models will cease production by the end of next year—including the Chevrolet Volt, the gas-electric hybrid midwifed when the Obama auto task force was calling the shots inside GM’s Renaissance Center headquarters. electricity word search printable In steering this new fiscal course, CEO Barra—and Detroit—appear to be driving towards a bumper car rendez-vous with President Trump on at least two fronts: the Trump White House and the UAW’s Solidarity House. By deeming four U.S. plants “unallocated” for production, General Motors is, effectively, seeking to exert maximum leverage over national bargainers in next year’s talks: each of the targeted plants is scheduled to end production before the union contract expires next September, putting their futures in real doubt—and raising any number of fiscal challenges for the City of Detroit.

Jon Gabrielsen, a market economist and advisor for both auto manufacturers and auto suppliers, notes: “Anyone who thought (President Donald) Trump could save their jobs was delusional. No person, whether Trump or not, had any more chance of reversing rapidly changing trends than to swim up Niagara Falls…Corporations don’t enjoy doing this and their investors don’t enjoy the huge costs to do so. But it sure beats not doing it and going out of business.” He noted that General Motors timing goes to strategy, stating that there is a financial advantage to announcing big cuts before New Year’s Eve, as well as a bookkeeping strategy that benefits investor relations and allows the company to claim certain losses and later revise and claim certain gains. electricity in costa rica He estimates the unemployment impact of the direct Detroit salaried job cuts for the metro area could raise unemployment by a little over 1 percent, and, with the multiplier impact, that could add as much as 4 to 5 points to the metro unemployment rate, which was 4 percent in October 2018—or, as he put it: “In the last cycle, unemployment went from 4.5 percent in January 2001 to 16.4 percent in June 2009…So rising from 4 percent to 8 or 9 percent unemployment is well within reason.”