What’s Going On With GM?

By Matthew McMullan
Jan 08 2019 |
General Motors’ Detroit headquarters. | Photo by Ken Lund

A story told in tweets.

In 2017, Congressional Republicans passed and President Trump signed what the Washington Post described as “the most significant overhaul of the U.S. tax code in 30 years.”

Less than a year later, a flagship American corporation, General Motors — proud recipent of approximately $50 billion in federal assistance after the Great Recession — took its reduced corporate tax rate and announced plant closures in Ohio, Michigan and Maryland. Lots of layoffs. If only we had seen it coming! 

Oh man! Maybe the president should have read that tax bill he signed a little more closely.

Anyway: After GM caught a ton of heat for its downsizing plans it deigned to offer laid-off workers the opportunity to move into other positions at factories elsewhere.

But the United Autoworkers, which represents workers in GM factories, is claiming the company is instead filling those positions with temps. That's a savvy business move by GM; you don’t have to extend to temps benefits like health insurance.

So what’s the buzz about GM today? Crunching the numbers to see if domestic manufacturing jobs can be saved? A close scrutiny of whether shareholder-servicing isn't the best way to run a company? Nope, the buzz is this:

Yes, that's right: “General Motors Co. management may want to contemplate a name change to get investors thinking differently about the more than century-old company that’s trying to transform itself,” reads the opening paragraph in a Bloomberg story.

Talk about misaligned priorities. The layoffs will take effect in March.