Car Talk: GM's Barra to Sit Down With Trump Thursday
General Motors CEO will meet with U.S. President Donald Trump and White House officials on Thursday to discuss the state of the automotive industry, trade issues, and the fuel economy rollback. We imagine it’ll go much differently than their first meeting in Washington.
Perpetually concerned with economic threats arising from China, Trump has come down hard on automakers in the past. These days, his favorite punching bag happens to be GM. The automaker’s strong presence in China has forced it to make commitments there. On this side of the Pacific, the automaker has shuttered production facilities in Michigan, Ohio, and Maryland while continuing to manufacture vehicles in Mexico — something the UAW has been exceptionally critical of going into contract negotiations.
GM was chosen as the initial target in the latest round of UAW-Detroit Three bargaining. While the automaker’s industrial footprint in the U.S. is much larger than in Mexico or China, boasting more factories and a bigger workforce, it’s been an ongoing issue. The UAW has been particularly critical of the Chevrolet Blazer, arguing the crossover should could have been produced in America at a time when GM was deciding to close Lordstown Assembly in Ohio.
That’s left the union with a strange ally in the president. His problems with General Motors (and other automakers) seem to echo UAW’s concerns perfectly. However, one wonders how productive his talk with Barra can actually be after seeing some of his comments going into it.
“General Motors, which was once the Giant of Detroit, is now one of the smallest auto manufacturers there. They moved major plants to China, BEFORE I CAME INTO OFFICE,” Trump tweeted last week. “This was done despite the saving help given them by the USA. Now they should start moving back to America again?”
Soon, every media outlet on the planet caught the gaffe and published information we already know — GM is actually one of the biggest automakers on the planet. However, after spending over an hour wondering what made him think otherwise, we think we may have an answer. Based on the tweet’s timing, it seems likely that Trump was referencing a Bloomberg study that showed GM now employs fewer union-represented American workers than either of its domestic rivals.
Previously the country’s largest employer, General Motors’ domestic endeavors shrunk as the company become more of a global entity. It was also bloated going into the 2008 financial crisis. Before filing for bankruptcy in 2009, GM was furiously spinning off parts of the business in a bid to save itself. Once the time came to bite the financial bullet, it cut thousands of workers and closed numerous plants. While not facing the same economic hardships in 2019, GM is presently in the midst of a widespread restructuring effort — this time with the aim of future-proofing itself.
According to Reuters, the White House says the meeting with Barra will take place Thursday afternoon in the Oval Office, but neither General Motors nor Washington seems willing to hint at the topics to be covered. Negotiations with the UAW will, undoubtedly, be brought up. Existing contracts expire on September 14th and GM will likely face the brunt of the union’s wrath. Trump will almost certainly ask Barra why GM can’t keep more of its business inside the U.S., as it’s something he’s harped on continuously since taking office. He’s also previously asked GM not to join Ford and a handful of other automakers in backing deal with California for stricter fuel economy standards against the backdrop of his administration’s rollback attempt.
[Image: General Motors]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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I hope Trump leaves GM alone. If they want to make cars in China, then let them. We live in an interconnected world now.
This would've been an interesting meeting to watch. GM has a ~1980's business model. Trump has a ~1950's understanding of globalization. They would need multiple translators and would still talk past each other.