The white house vs. gm the theater of the absurd turtle garage thitima electricity sound effect

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Creative Destruction is forcing some tough decisions in Detroit. gas tax nj GM announced this week that will close five North American plants. The consequences of this momentous decision will be the loss of roughly 14,000 jobs. CEO Mary Barra is trying to get ahead of the many looming unpredictable changes that are upending the automobile industry. President Donald Trump took to his Twitter pulpit and dolled out harsh criticism of her plan and even threatened to end GM’s federal tax credits that have helped subsidize GM’s electric cars. Washington DC appears oblivious to the seriousness of the many threats facing America’s automobile industry. When you peel back the onion, it is obvious that GM’s plant closures are not a desperate move by the automaker to beat next quarter’s Wall Street earnings estimates. Quite the contrary, GM is currently enjoying strong profits from robust sales of pick-up trucks and SUV’s. Instead, the cost-cutting measures are part of a proactive and strategic initiative to shift resources towards crucial investments to help shore up GM’s future. President Trump is using the job losses to create political theater by painting a picture that GM is not committed to U.S. manufacturing.

The reality is that disruptive technologies like autonomous driving and battery propulsion are already beginning to impact automakers. These radical changes (and many others) have the potential to turn the industry upside down. gas yourself Automobile manufacturers must invest and plan now or risk being left behind by Google and Amazon or other cash-rich tech titans that might decide to enter the car business. By closing these factories, GM can focus on profitable models and factories while shifting capital towards developing critical new products and technologies. Three of the five plants GM is closing are not making money. These moves are s painful but necessary path. GM is not alone. Back in April, Turtle Garage reported on Ford’s similar decision to focus on SUV’s and stop producing passenger cars—you can read that post here.

Barra is rightfully trying to refocus GM’s research and development spending toward the future. Over the next decade, developing competitive electric autonomous products will cost the industry billions. There will be many winners and losers as the future unfolds. On top of the emergence of autonomous vehicles and electrification, we are witnessing a significant sea change in consumer tastes. electricity receiver definition Given low gas prices, buyers are moving away from efficient sedans and are demanding SUV’s. Many radical market changes occurred while GM was developing the Volt—they ultimately brought to market a high quality, successful and competitive plug-in hybrid. The market dynamic here is very confusing, especially for car companies that work on products today that will not be in showrooms for at least three to five years in the future. Like a complex fly fishing stream with multiple cross-currents, it is becoming increasingly difficult for auto manufacturers to read the river. GM has finally launched a successful hybrid car that can rival the Prius, and now nobody wants to buy fuel-efficient vehicles. Even efficiency pioneer Toyota sees waning demand for its renowned high-quality fuel-efficient vehicles. Consumers are signaling they want big inefficient cars, yet at the same time, there is a radical change in the air with electrification coming. All of these trends and possibilities were largely unthinkable and unknowable just five years ago—its hard to imagine what the next five years will bring. electricity number GM is trying to transform the company to survive and thrive in the future, and it should not receive government punishment for making tough but necessary business decisions.

Have you been to Tokyo lately? Lots of Japanese cars and lots of European cars too, but no American cars. Why is that? Have you been to the EU lately? Lots of Japanese cars and European cars, but no American cars. Why is that? I suggest that the reason is that these countries all maintain barriers to entry that prevent American cars from entering those countries at reasonable prices. z gas cd juarez I am not an expert on tariffs imposed on American cars by other countries. But American cars are not so terrible. I think that Trump is trying to force a level playing field. something that his predecessors failed to do. Sure, the USA is a high cost manufacturing country. So is Germany. So is Britain. electricity omd The only competitive disadvantage we have is the barriers to entry, aimed at US production, in every foreign market where cars are produced.

Trump campaigned all over the Midwest to save US jobs, especially auto jobs. And in many respects his belligerent moves have been effective in causing foreign automakers to commit to building more cars and car parts in the US. So it appears to this unbiased observer that this part of his agenda has been successful. Unfortunately, job growth in this industry isn’t happening in the unionized upper midwest, but in the sunbelt states that have foreign-owned facilities. Ohio has Marysville, where Honda will be making, I understand, the NSX. But that is low volume production. Trump’s push to get GM to do something in the states that will lose jobs is understandable, even though in the short run it will not cause any plants to remain open. Retooling Lordstown will be a major rebuild of the production line there.