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November 27, 2018

U.S. job cuts

Trump admonishes GM over U.S. job cuts: 'You better get back in there soon'

GM’s announcement that it plans to cut up to 14,000 jobs has put a spotlight on the impact of the administration’s trade policies.

By ANDREW RESTUCCIA and BEN WHITE

President Donald Trump said on Monday that he is "not happy" with General Motors and is putting pressure on the company to undo its plans to shutter North American plants and cut thousands of jobs.

Trump said he spoke with GM CEO Mary Barra after the company on Monday announced plans to cut up to 14,000 jobs.

"I was very tough. I spoke with her when I heard they were closing and I said, 'You know, this country has done a lot for General Motors,'" Trump told reporters at the White House, adding that he encouraged Barra to maintain GM's operations in Ohio. "You better get back in there soon."

Trump said his administration is putting " lot of pressure" on GM to come up with alternatives to the cars that aren't selling well, like the Chevrolet Cruze.

"They say the Chevy Cruze is not selling well," he said. "I say, well, then get a car that is selling well and put it back in."

GM on Monday said it would stop manufacturing several poorly selling vehicles like the Cruze and possibly close as many as five North American plants. The news has threatened to undercut Trump’s pledge to bring factory jobs back to the United States and has put a spotlight on the impact of the administration’s trade policies. GM previously said the administration’s tariffs on imported steel have cost the company $1 billion.

The president's comments came shortly before top White House economic adviser Larry Kudlow met with Barra on Monday afternoon. The meeting had been scheduled prior to GM's announcement.

A person familiar with the roughly 40-minute meeting said Barra sought to contextualize the company's announcement, suggesting that the actual number of job losses could ultimately be smaller after current workers are offered positions in Texas and Michigan.

Barra told Kudlow that GM's business is relatively healthy, adding that executives are not planning for an economic downturn, but rather for changing consumer demand away from sedans and smaller cars to crossovers and SUVs, according to the person.

She brought up the impact of the administration's tariffs, but the person said the issue was not the focus of the discussion, nor was the president's earlier criticism of the company.

Barra has enjoyed a close relationship with the Trump administration, having met with the president — along with other CEOs — several times last year. She is also friendly with Kudlow.

During a speech last year in Youngstown, Ohio, Trump vowed to reopen the state’s shuttered factories.

"We’re going to fill up those factories or rip them down and build new ones,” Trump said, adding, “After years and years of sending our jobs and wealth to other countries, we are finally standing up for our workers and for our companies."

GM announced Monday that it plans to halt production at its Lordstown, Ohio, assembly plant, which is about a 20-minute drive from Youngstown.

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