GM Responds To Trump: You're Wrong

Tyler Durden's picture

In a terse and non-deferential response to president-elect Trump's tweet, GM has responded with a statement which can be summarized in two words: "you're wrong."

Following Trump's tweet...

... GM responded with its version of the facts, according to which all Cruze sedans are built in the US, while the Mexican-produced Chevy Cruze hatchback is built for global markets, "with a small number sold in the US"

General Motors manufacturers the Chevrolet Cruze sedan in Lordstown, Ohio.

 

All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio.

 

GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.

Now we await Trump's counter response.

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two hoots's picture

Small number, is not a number?    How many GM?

Looney's picture

 

A Big Number minus a Small Number equals another Small Number.   ;-)

Looney

Holy hand grenade of Antioch's picture

Good luck with that next taxpayer bailout GM

Powerslaved's picture

The first one never should have happened.

CheapBastard's picture

Hay Carumba!

Well, at least the GM guy responded in English. That's a start. But their response is insulting imo. They are not dealing with some lowly businessman. They are answering to The Donald who represents Americans. When they insult The Donald, they insult Americans.

NoDebt's picture

"GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S."

If I was Trump my counter-response would be:  "Then you shouldn't mind paying the border tax on that small number of cars."

 

847328_3527's picture

Some CEOs want to rebuild America and create jobs with Trump.

 

Others seek to tear America down. GM can decide which camp it wants to be in.

With Americans or against them.

bigkahuna's picture

GM is going to have to do a lot to get me to buy anything of theirs. They and Chrysler are off of my list. They both stole from the American public (bailout 2008-2009) - so they can cry a river and fuck off.

truthseeker47's picture

That's right, bigkahuna.  That's one reason we have 5 Fords in our family.  The other reason is they are better cars & trucks.

truthseeker47's picture

Ford does the right thing and will invest in Michigan:

http://www.zerohedge.com/news/2017-01-03/ford-cancels-plan-16-billion-me...

Maybe Michigan swinging for Trump has restored some of Ford's confidence in the state.

N0TME's picture

"You're either with us or with the enemy." - Bush II

Not that I'm a Bush supporter, well okay, bush, but not Bush.

brianshell's picture

A referee ensures a level playing field. A businessman faces fierce competition and will try anything to survive. Once all players face the same rules the tariff is no longer a factor since all businesses are treated equally.

This includes China. Trump can fairly argue that we are not picking on China since we have the same rule for our own companies.

ToSoft4Truth's picture

'Some CEOs want to rebuild America and create jobs with Trump. Others seek to tear America down'

 

It's always the consumer who makes the final decision.  Never a CEO. 

jwoop66's picture

Whose side do you think govt motors would be on...?

Citizen G's picture

I think they decide that years ago. After the bailouts they built plants overseas and cut jobs here. Fuck gm. Don't buy that shit.

beemasters's picture

If we don't eat our own [expensive] shit, nobody will and more jobs lost. Think about it.

TemporarySecurity's picture

America is making it where the only way an American company can sell overseas is to manufacture outside the US.  GM just need to double the cost of the Cruz to Americans and keep exporting, with this type of idicy the US will not remain the strongest market for very long.

 

How about we stop with the protectionism from the new king and go back to reducing regulations and government.

brianshell's picture

I recall the story about a shoe company that sold its brand in America for, say ten dollars. Then it opened a factory in, say Africa and sold its shoes for say, ten cents. That was fine. But they didn't try to import their shoe back into America.

Our companies already have factories in foreign countries that sell for their local market. Now, the foreign countries can say, the profits from our foreign factory are bleeding out of that foreign country and that would be true but just like the country with oil that contracts a foreign company to extract it and refine it because the source country isn't able to, then it is a fair business decision for that country.

Bob's picture

True enough.  But their problem with Trump's tweet is that it brands an entire model line as foreign-made, potentially crushing sales.  I wish they had responded with percentages, but if it is indeed "small," the Prez Elect has slandered their brand, inadvertantly or not.

They should follow with the percentage of Cruzes sold in the US that are imported from Mexico to end this thing.   

 

NoDebt's picture

You know where a lot of the parts come from for those "Ohio-built" Cruzes?  Think one country to the north and one country to the south.  They are ASSEMBLED in Ohio, but a lot of the content is shipped in from elsewhere.

 

boattrash's picture

Yep, I have family that run a body shop. Even though they buy "Genuine GM Parts" for their repairs, MOST of the parts are made in Mexico. Last week, I saw a pick-up grill that was missing some of the attach-points compared to the original. You guessed it. Genuine GM Part from Mexico...

Edit; Note that grill was an $800 piece of plastic, at their discount, uninstalled.

Dien Bien Poo's picture

ever wonder how Wilbur Ross made his money? Thats right; buying up Mexican car parts manufacturers and selling the parts back to the US. Now hes Commerce secretary. No conflicts there right?

ATM's picture

So Ross shouldn't play by the rules everyone else does?

I think Trump is simply talking about changing the rules to try to help American manufacturing jobs. It may help somewhat but in the bigger scheme will have zero net effect. 

The real problem is a fiat currency and world reserve status. The Tiffin Dilemma means the dollar will eventually crater as the US runs perpetual trade deficits. As those trade deficits run the manufacturing base leaves.

So Trump, if he were truly on top of it, would seek to end the dollars reserve status or end it's fiat status, or both. Nothing short will bring the jobs back.

fockewulf190's picture

Only chance to reverse that situation is to change the entire environment for US businesses to thrive and produce inside the US.  Ross knows those differences between both the Mexican and US systems like the back of his hand, and that kind of knowledge will be invaluable for President Trump.

NoDebt's picture

If you're an old hot rodder, like me, you know that the phrase "Hecho en Mexico" has been cast into the side of every GM 350 Chevy V8 replacement motor for years now.  They actually refer to them as "Hecho en Mexico blocks" for that reason.  Opinions vary on their quality, but their country of origin is definitely NOT the US.

 

 

boattrash's picture

No, I didn't know that. Fortunately, in my circle, we had stockpiled enough old blocks/parts that we  haven't bought any in years.

Was not aware of the Wilbur Ross comment above either...

DirkDiggler11's picture

With a Ford 351 Cleveland or 351 Windsor there was never any question where your engine was manufactured.

My preference was always the 351 C with a 4 bolt main...

any_mouse's picture

As long as you know that "Windsor" is across the Detroit River in Canuckistan.

And the Cleveland was everybody's preference in the USA.

Shockwave's picture

Cleveland heads are heads and shoulders above windsor heads. No idea why the windsor has become 'the' ford hot rod small block.

Probably affordability.

Canted valve heads > inline valve

Casey Jones's picture

If the labor is so cheap in old Mexico, how does a piece of plastic end up priced at $800? I don't buy this "we can't make things here" argument any more. We have to find a way. But if Trump wants to help, he should put some attention on small business and encouraging entrepreneurs.

boattrash's picture

C.J. Exactly! The parts racket is YUUUGE, and YUUUUGELY FUCKED! Recent price for GM pick-up bed...$4,800

Decades ago, Plastic headlight assembly for Subaru $650 Ea...their cost.

Theta_Burn's picture

Welcome to the land of legacy costs..

Where if a company didn't tow the union line, they were hit with a strike. H. Ross Perot warned of all this 30 yrs ago, this is where we would be today.

"We want it now..Fuck tomorrow" 

That $800 Mexican pc of plastic helps subsidize the unsustainable generous benefit and pay package foolishly promised by the "for the people" unions... now the unions, and the companies are fucked.. or pay 65K for a Cruze..

I really do wish Trump well, but trying to fix this with a couple of tweets is embarrassing, and just grandstanding.

Bigmacks aren't the only thing that a robot can make..

 

 

brianshell's picture

What if the union (the labor) owned the company? Would they be so ready to cut their own throats?

The time for employee, partner owned companies is here. The competition for survival requires all involved be on the same page.

NoDebt's picture

Just for shits and giggles I googled for the domestic content of the Chevy Cruze and found this Cruze enthusiast forum (I never knew anyone could be enthusiastic about a car like the Cruze, but I guess there are such sad little people out there).

http://www.cruzetalk.com/forum/9-general-discussion/112658-american-cruz...

Consensus is that it's about 50% US content.  That's less than your typical Honda Accord or Toyota Camry.  So tell me again who is a "foreign" car company?

 

 

truthseeker47's picture

"So tell me again who is a "foreign" car company?"

One of the main differences nowadays is where the company profits end up and the company taxes paid.  The Japanese have lots of assembly plants in US but they are clever with the accounting, and profits are charged back to Japan and taxes paid there. Japanese businessmen consider it patriotic.  I think the Germans are the same.  As for US companies, well, they might be happy to avoid the worlds highest corporate tax rates, at least until Trump fixes that.

brianshell's picture

So Apple is an Irish company?

Kayman's picture

Made in China parts are in nearly every vehicle.

El Vaquero's picture

It makes me question where the clutch master cylinder that I put in came from.  I replaced the last one, and 1 1/2 years later, it went out.  It is a good thing that there were no stoplights and I know how to shift without a clutch.  The fluid is going black on my new one after only a few months, a sure sign that it is going to take a shit.  I got it from a different supplier too, though this one has a lifetime warranty.  I'll keep on using that lifetime warranty until the manufacture gets a hint that quality is important. 

boattrash's picture

Good on you!

Keep track of your labor, take the Mfg to small claims court, when they don't show you'll be awarded a judgement against them...

TemporarySecurity's picture

Having the somewhat of a free market has also helped  all countries involved.  I would much rather see all countries prosper.

Other countries are not our problem, our federal, state and local governments are the problem.

brianshell's picture

Its a can of worms. Take Boeings jets, The claim is made that they are the top contributor to the balance of payments for the US but maybe 40% of the labor that makes the planes is foreign. True, some of that labor is defacto partial payment for a plane sold but in the battle for jobs, it is still a crippling factor for America.

Shockwave's picture

I would dispute that. I work for Boeing.... 95% of the labor that BUILDS the plane is US (only difference is a new finishing facility opened in China, where they only install the interior and paint)

As far as parts go, we contract vastly to American companies to machine parts, and many parts are machine here, in the NW.

The 787 was their attempt at outsourcing, and it has not workrd out well, so they brought a lot of the parts mfg back here.

The plane HAS to be built here to be FAA certified, so they attempted to build a 'snap together' plane with the 787, where everythi g was outstourced and we just snapped it together.

That didnt work.

Id say that at leat 75-80% of labor involved in Boeing Commercial Aircraft come from the US.

 

brianshell's picture

Times may have changed but I counted crates from 35 different countries on Boeing's receiving dock back in 2000. Japan's Fuji Heavy Industries, Mitsubishi and others make major components for example. I guess Boeing may have over a thousand different suppliers with a good number of them foreign. I was in air freight and moved those parts for years.

Boeing has to go head to head with Airbus which was created by politicians to make jobs and is run more like a non-profit than a private company. Its complicated.

CJgipper's picture

If the branding of the entire line was their issue, then they could have said "Only the hatchback model is made outside of the US."  

 

Calling Trump a liar while admitting that he's telling the truth doesn't cut it.

Rentier88's picture

Actually it is foreign-made.  GM states they are 'built' in Ohio.  Lets clarify, they are 'assembled' there, with probably 70-80%+ foreign-made parts!

Fisherman Blue's picture

I would not buy one of them shits with Obama's dirty money or anyother GM UAW shit.