Auto companies made several announcements over the last week but the hottest topic is still GM’s decision to cut production at four of its plants in the US, with the future of employees at these facilities up in the air. The company says it will not back down from its decision but some jobs may survive, if employees are willing to transfer to other GM plants across the country.
Before jumping into the news, check out our latest blog on how Uber and Lyft are now neck and neck in a race of unicorns toward an IPO. Both companies have filed draft proposals to the US Securities and Exchange Commission and it is just a matter of time before one of them, or both, becomes public.
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The GM Plot Thickens
US President Donald Trump told GM that its plan to move toward electric vehicles will not succeed, following CEO and President Mary Barra’s announcement to stop production at four US plants. Trump also told the company that under USMCA, it will be harder for GM to take production operations outside the US.
GM began sending layoff notices to government agencies on Friday. However, the company has said 2,800 workers are eligible to transfer to plants in Indiana, Ohio, Kentucky, Michigan, Tennessee and Texas. The plant in Michigan alone has 1,000 open positions.
The truce between China and the US holds. China has agreed to remove the 25 percent tariff it implemented on vehicle imports from the US for three months starting on Jan. 1, 2019 so negotiations can continue between both countries.
Renault refused to fire Carlos Ghosn as CEO following similar moves by Nissan and Mitsubishi, but the French government is already looking for candidates to take his position. The move comes after some board members voiced their doubts on Ghosn’s future following his indictment in Japan.
Ford has announced it will terminate production of Fiesta at the Cuautitlan plant by mid-2019. The company will then begin the necessary modifications of its production lines to begin manufacturing an electric model by 2020.
Auto parts supplier Rassini announced it had reached an acceptance level of 97.84 percent over its total available stock to move forward toward delisting the company. The decision is a result of the impact on the company’s value from the renegotiation of NAFTA.