What To Know About GM, Lordstown And Trump

General Motors Company GM said it will negotiate with the United Automobile Workers — and the UAW only — this fall to decide the fate of the recently shuttered Lordstown, Ohio, plant. But some stakeholders are growing impatient.

“Why wait, start them now!” President Donald Trump tweeted Monday morning. “I want jobs to stay in the U.S.A. and want Lordstown (Ohio), in one of the best economies in our history, opened or sold to a company who will open it up fast!”

General Motors and the UAW are going to start “talks” in September/October. Why wait, start them now! I want jobs to stay in the U.S.A. and want Lordstown (Ohio), in one of the best economies in our history, opened or sold to a company who will open it up fast! Car companies.....

— Donald J. Trump (@realDonaldTrump) March 18, 2019

....are all coming back to the U.S. So is everyone else. We now have the best Economy in the World, the envy of all. Get that big, beautiful plant in Ohio open now. Close a plant in China or Mexico, where you invested so heavily pre-Trump, but not in the U.S.A. Bring jobs home!

— Donald J. Trump (@realDonaldTrump) March 18, 2019

"Lordstown is the first of the four US plants GM is closing. It had 1,435 hourly workers last year at the time the company announced plans to close it," according to CNN.

What Happened

Last week, Toyota Motor Corp TM announced plans to boost its investment in U.S. manufacturing. The foreign expansion seemed to spook Trump, who tweeted a Saturday plea to GM to reopen its Lordstown plant.

Because the economy is so good, General Motors must get their Lordstown, Ohio, plant open, maybe in a different form or with a new owner, FAST! Toyota is investing 13.5 $Billion in U.S., others likewise. G.M. MUST ACT QUICKLY. Time is of the essence!

— Donald J. Trump (@realDonaldTrump) March 16, 2019

He followed Sunday with critiques of UAW leadership and GM CEO Mary Barra.

Democrat UAW Local 1112 President David Green ought to get his act together and produce. G.M. let our Country down, but other much better car companies are coming into the U.S. in droves. I want action on Lordstown fast. Stop complaining and get the job done! 3.8% Unemployment!

— Donald J. Trump (@realDonaldTrump) March 17, 2019

Just spoke to Mary Barra, CEO of General Motors about the Lordstown Ohio plant. I am not happy that it is closed when everything else in our Country is BOOMING. I asked her to sell it or do something quickly. She blamed the UAW Union — I don’t care, I just want it open!

— Donald J. Trump (@realDonaldTrump) March 17, 2019

GM responded to the tweets with a Sunday press release asserting its ultimate authority on the future of discontinued plants.

"To be clear, under the terms of the UAW-GM National Agreement, the ultimate future of the unallocated plants will be resolved between GM and the UAW,” the firm said. “We remain open to talking with all affected stakeholders, but our main focus remains on our employees and offering them jobs in our plants where we have growth opportunities. We have now placed over 1,000 employees from our unallocated plants to other GM locations, and we have opportunities available for virtually all impacted employees."

Why It’s Important

The UAW is suing GM for closing the Lordstown plant, which allegedly violates GM’s 2015 contract. Trump and other lawmakers have also criticized management’s restructuring plans, which include the closure of five North American plants by early next year.

GM justifies its course by citing changing market conditions. The company will discontinue products built at the targeted plants and save $2.5 billion this year in the process.

The political and union backlash stunts GM’s strategy to realign with consumer preferences and cut costs as it competes with rising rivals in Tesla Inc TSLA and foreign automakers.

GM will negotiate with union leaders in September or October. Some have speculated they may consider a sale to Tesla.

GM traded lower by 1 percent Monday to $37.66 per share.

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Photo credit: InSapphoWeTrust, Wikimedia. The Cruze was built in the Lordstown plant.