General Motors said it will significantly cut its salaried workforce and could close up to five plants in North America, including three assembly plants, as part of an overhaul of its operations in 2019.
Ms. Barra said the automaker doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong". General Motors, in July, said Trump's tariffs would cost it more than $1 billion over a full year and the company's chief financial officer told Reuters that GM would deal with those added costs by "negotiating price reductions with suppliers, raising prices on more popular models, and cost cutting".
"Let me tell you folks in OH and in this area, don't sell your house", Trump said at the time, to wild applause "We're going to get those jobs coming back, and we're going to fill up those factories or rip them down and build brand-new ones". Talks for the new three-way deal yielded increases in the North American content of tariff-free vehicles to 75 per cent from 62.5 per cent, in addition to requiring 40 per cent of a vehicle be made by workers earning US$16 an hour, a shift that favours Canadian and USA auto plants over those in Mexico.
"If you look at what GM is really doing, they're taking a bunch of one-shift plants that have been limping along with very low demand and short workweeks and the whole 9 yards", former GM Vice Chairman Bob Lutz said.
GM has now announced it is planning to close five North American plants by the end of 2019: assembly facilities in Detroit, Ohio and Ontario, Canada; and transmission factories in MI and Maryland.
Plants in Baltimore, Maryland, and Warren, Michigan that assemble powertrain components will have no products assigned to them after 2019 and thus are at risk of closure, the company said. In Detroit, it plans to halt production of the Buick LaCrosse and Chevrolet Volt in March and the Cadillac CT6 and Chevrolet Impala in June.
It is also a response to a business cycle that has passed its peak and is now expected to show declining sales, said Kristin Dziczek, vice-president of industry, labour and economics at the Center for Automotive Research in MI.
Besides the five plants in USA and Canada, GM said it would cease the operations of two more plants outside North America by the end of 2019.
After 7-month journey, spacecraft nears landing on Red Planet
NASA's Mars InSight Lander touched down on the Martian surface Monday and wasted no time in getting the first picture back to Earth.
Saudi Arabia upholds justice, rights
Saudi prosecutors have said a 15-man team sent to Istanbul killed Khashoggi with tranquilizers and dismembered his body, which has not been found.
Oprah Winfrey's Mother, Vernita Lee, Dies on Thanksgiving Day at 83
We will miss her and will carry on her legacy of good eatin! She was predeceased by a son, Jeffrey, and by a daughter, Patricia. Oprah had two half-siblings on her mother's side - Jeffrey, who died of AIDS in 1989, and Patricia, who passed away in 2003.
In a statement announcing the decisions, GM said the restructuring would generate cash savings of about $6 billion that will be needed as the company races to develop autonomous vehicles and a larger portfolio of electric cars.
GM also is ramping up hiring at its GM Cruise autonomous vehicle unit, pushing to overcome technical challenges and make good on a plan to launch a robo-taxi service next year. The company estimates that the cuts will save it $6 billion by the end of 2020. "We supported GM years ago when they were in trouble".
Meanwhile, GM's plant in Oshawa, Ontario, will stop making the Impala, Cadillac XTS and 2018 full-size pickups in the fourth quarter of next year.
It was expected that GM needed to address underutilization of its plants. "It is much bigger than USA politics, but it certainly is part of the issue".
The plan may signal the demise in the US of several passenger cars that have been struggling, including the Chevrolet Cruze, the Chevrolet Impala and the Cadillac XTS. "They better put something else in", Mr Trump said.
"We need to make sure that we are well positioned to compete, not just over the next few years, but well beyond", she said.
Lordstown, which has dropped from three shifts to one in recent years, exclusively produces the Chevrolet Cruze.