US President Donald Trump is now expecting Detroit-based automaker General Motors to start shifting its business operations from China back to its native country. The president mocked on the Detroit automaker through a tweet and news report that how the automaker has shrunk from the Giant of Detroit to the smallest company in its native region after shifting major production units in China. He specified that even the US workforce at GM has declined from 620,000 in 1979 to 46,000 in 2019. This is the lowest count among the workforce of three auto manufacturers in Detroit.
General Motors didn’t respond to Trump’s tweets and related reports.
Trump’s anger for GM appears in the form of agreement discussions with the United Automobile Workers labor union with the Detroit Three automakers, which would intensify after the deadline of September 14, 2019. Trump has already accused GM for managing manufacturing operations in Mexico and for shutting down the production facilities in Maryland, Michigan, and Ohio. The major issue behind the recent discussions is the automaker’s decision to shut down four production facilities in the US.
China is not only the globally largest auto market but also offers government policies favorable for automakers to assemble the vehicles over there only. In 2018, General Motor generated 43% of global sales exclusively from China by selling 3.6 Million vehicles throughout the nation.
On a related note, the German automaker Volkswagen has planned to invest $557 Million on its production facility located in Sao Paulo state, Brazil. In addition to this, the automaker would generate 1,000 jobs.
Governor of São Paulo, João Doria, with the introduction of new laws and acts, has been attracting and retaining automakers to launch production facilities in the state. His new tax plan, which he introduced earlier this year for automakers, offers a 25% slash in value-added taxes if they invested a minimum 1 billion reais and generated 400 more jobs.