>> PRESIDENT PUTIN WILL DO, GO AS FAR AS THE FREE WORLD WILL
LET HIM GO.
>> OKAY.
>> OKAY. IN ADDITION TO THAT, WE HAVE
BREAKING NEWS.
BREAKING NEWS. GENERAL MOTORS ANNOUNCED
SWEEPING LAYOFFS TODAY FOR THE
NORTH AMERICAN EMPLOYEES.
NEARLY 15,000 WORKERS ARE
EXPECTED TO LOSE THEIR JOBS.
THE RESTRUCTURING PLAN TO SHUT
FIVE FACTORIES, THREE THAT
PRODUCE CARS FOR FOREIGN
MARKETS.
MARKETS. OHIO, MICHIGAN AND ONTARIO
FACILITY COMPLETELY SHUT DOWN IN
CANADA.
CANADA. TWO POWERTRAIN PLANTS IN
MARYLAND AND MICHIGAN, AS WELL.
>> ONE OF THOSE FACTORIES, THE
OSHAWA PLANT IN CANADA EMPLOYED
2,500 UNION EMPLOYEES AND 300
SALARIED POSITIONS, ALL OF THOSE
JOBS ARE FACING ELIMINATION.
THE TOWN HAS BEEN HOME TO A
GENERAL MOTORS MANUFACTURING
PLANT, GET THIS, FOR OVER 100
YEARS.
YEARS. IT GIVES ME THE CHILLS JUST TO
SAY THAT.
SAY THAT. UNDERSTANDABLY, THE COMMUNITY IS
VERY UPSET AND PREPARED TO FIGHT
FOR THEIR PLANT.
ONTARIO ASSEMBLY MEMBER JENNIFER
FRENCH SAID GM DIDN’T BUILD
OSHAWA.
OSHAWA. OSHAWA BUILD GM.
>> JOINING US IS KEITH NAUGHTON.
>> AM I MISPRONOUNCING IT?
OSHAWA.
OSHAWA. >> TORONTO SUBURB AND KNOWN FOR
AUTOWORK.
AUTOWORK. THE HEART OF CANADIAN AUTO
BUILDING.
BUILDING. KEITH, WHAT DO WE KNOW ABOUT
THESE JOB LOSSES AND THESE PLANT
CLOSURES?
CLOSURES? BIG, BIG, BIG NUMBERS.
>> YEAH.
>> YEAH. VERY BIG NUMBERS.
FIVE FACTORIES IS A LOT IN ONE
FELL SWOOP.
FELL SWOOP. WHAT’S GOING ON HERE IS GENERAL
MOTORS CEO MARY BARRA TRYING TO
GET AHEAD OF TROUBLE.
THE MARKET IS GOING DOWN
PARTICULARLY FOR THE CARS BUILT
IN THE PLANTS.
TRADITIONAL SEDANS LIKE THE
CHEVY IMPALA.
CHEVY IMPALA. PEOPLE AREN’T BUYING THEM
ANYMORE AND CLOSING THE PLANTS
AND FOCUSING ON SPORT UTILITY
VEHICLES AND TRUCKS.
>> IS IT THAT THEY’RE
ELIMINATING THE JOBS OR CHANGING
THEM?
THEM? BECAUSE THE PRESIDENT HAS SPOKEN
OVER AND OVER ABOUT AUTO JOBS
COMING BACK SPECIFICALLY TO
PLACES LIKE OHIO.
I WANT TO SHARE WHAT HE SAID
JUST LAST SUMMER.
>> I RODE THROUGH YOUR BEAUTIFUL
ROADS COMING UP FROM THE
AIRPORT.
AIRPORT. AND I WAS -- I WAS LOOKING AT
SOME OF THOSE BIG ONCE
INCREDIBLE JOB PRODUCING
FACTORIES.
FACTORIES. AND MY WIFE MELANIA SAID, WHAT
HAPPENED?
HAPPENED? I SAID, THOSE JOBS HAVE LEFT
OHIO.
OHIO. THEY’RE ALL COMING BACK.
THEY’RE ALL COMING BACK.
COMING BACK.
COMING BACK. DON’T MOVE.
DON’T MOVE. DON’T SELL YOUR HOUSE.
DON’T SELL YOUR HOUSE.
>> ARE THERE JOBS COMING BACK?
IS HE TALKING ABOUT SOMETHING
ELSE?
ELSE? >> SADLY, FOUR OF THE FIVE
PLANTS GM IS CLOSING IS IN THE
UNITED STATES INCLUDING A VERY
LARGE ONE IN OHIO.
THE UNITED AUTOWORKERS UNION IS
FURIOUS OVER THIS AND POINT OUT
THAT GM IS BUILDING TRUCKS IN
MEXICO AND BUICKS IN CHINA AND
COULD BE BUILDING THEM IN THE
UNITED STATES.
UNITED STATES. SO THEY’RE LOSING A LOT OF
FACTORY WORKER JOBS HERE IN THE
UNITED STATES.
UNITED STATES. >> I JUST A MOMENT AGO SPOKE
WITH THE MEXICAN ECONOMY
SECRETARY, THAT’S PART OF THE
OUTGOING GOVERNMENT IN MEXICO,
AND HE WAS SORT OF SAYING THAT
HE THINK IT IS AUTOMAKER’S WOES
ARE STEEL PRICES DUE TOARIFFS
THAN ANYTHING ELSE.
>> THERE’S CERTAINLY A HEAD WIND
THAT THE PRESIDENT PUT ON STEEL
AND ALUMINUM COSTING AUTOMAKERS
MILLIONS OF DOLLARS AND THERE’S
A MARKET SHIFT AS GAS PRICES
REMAINED LOW.
REMAINED LOW. AMERICAN CONSUMERS ARE BUYING
THE SUVs, THE TRUCKS AND THEY
DON’T WANT THE CARS THAT ARE
BUILT AT THESE FACTORIES ANY
LONGER.
LONGER. >> IN TERMS OF THESE LAYOFFS, IS
IT SIMPLY THAT THEY ARE GETTING
AHEAD OF HEADWINDS THAT ARE
COMING OR ARE THEY OPTIMIZING
THE COMPANY?
THE COMPANY? IN TERMS OF OPTIMIZING, CHANGING
STRATEGIES TOWARDS AUTOMATION?
THAT WILL HAVE THE SAME BAD
IMPACT FOR FACTORY WORKERS AND
SAYS SOMETHING ABOUT THE COMPANY
AND THE ECONOMY.
>> CERTAINLY GM IS TRYING TO
MAKE THE COMPANY LEANER AND MORE
PROFITABLE.
PROFITABLE. WHAT WE’RE ALSO SEEING HERE IS A
SHIFT TOWARD THE FUTURE.
THE TWO TRANSMISSION PLANTS THAT
ARE CLOSING ARE HARBINGER OF
THINGS TO COME BECAUSE THE
ELECTRIC VEHICLES THAT GM WANTS
TO SELL IN THE FUTURE WON’T NEED
THE TRADITIONAL TRANSMISSIONS.
MORE OF THOSE PLANTS WILL BE
GOING AND GM TRYING TO SHIFT TO
A FUTURE OF ELECTRIC CARS AND
SELF DRIVING CARS.
>> THE IMPALA MADE IN CANADA,
THE PRESIDENT ARGUES THAT HE
DOESN’T TALK ABOUT IT AS MUCH
NOW BECAUSE THE NEW NAFTA DEAL
IS MADE BUT HE CONSTANTLY
THREATENS TO SHUT OFF BORDERS
WITH MEXICO.
WITH MEXICO. HE TALKED ABOUT SHUTTING IT
COMPLETELY DON’T CARS DON’T COME
IN.
IN. THERE ARE NO CANADIAN CARS AND
NOMEX KAHNE
NOMEX KAHNE NO AMERICAN CARS.
DOES THE U.S. PROTECT ITSELF
FROM THREATS LIKE THAT FROM THE
PRESIDENT?
PRESIDENT? >> YOU KNOW, FOR CANADA,
UNFORTUNATELY, THEY’VE BECOME IN
NORTH AMERICA THE HIGHEST COST
LOCATION TO BUILD A CAR.
THAT’S BEEN WORKING AGAINST
CANADA FOR SOMETIME AND THEY
HAVE BEEN LOSING AUTO PRODUCTION
OVER TIME AS A RESULT.
WITH ALL OF THE TRADE ACTIONS
THAT PRESIDENT TRUMP IS ALREADY
DOING OR IS CONTEMPLATING,
REALLY THE SAFEST PLACE TO BUILD
A CAR RIGHT NOW WOULD BE IN THE
UNITED STATES.
UNITED STATES. THAT’S WHERE THE MOST TARIFF
FREE.
FREE. BUT THERE ARE STILL VERY LOW
WAGES IN MEXICO, VERY LOW WAGES
IN CHINA SO GENERAL MOTORS IS
STILL CHASING THOSE, AS WELL.
>> THANK YOU SO MUCH, KEITH.
WHAT DO YOU THINK?
>> I’M LOOKING AT DOW.
GENERAL MOTORS STOCK RIGHT NOW.
IT’S UP 5.7%.
>> OKAY.
>> OKAY. SO THIS IS WHAT’S SUPER
IMPORTANT FOR OUR AUDIENCE TO
SEE.
SEE. WHEN THE STOCK OF A COMPANY IS
UP, REMEMBER WHAT THE STOCK IS
BASED ON.
BASED ON. RIGHT?
RIGHT? ARE CUSTOMERS BUYING?
>> WILL THAT COMPANY MAKE MORE
MONEY IN THE COMING YEAR?
>> IF THEY HAVE LAYOFFS LIKE
THIS, IT COULD BE A POSITIVE FOR
THE COMPANY AND DON’T CONFUSE
HOW’S THE ECONOMY DOING, HOW’S
THE BROADER COUNTRY DOING AND
THE STOCK MARKET.
>> CORRECT.
>> CORRECT. >> THIS IS A GOOD THING FOR THE
STOCK.
STOCK. BUT TO THOSE THOUSANDS OF
WORKERS OUT THERE, FOR ALL OF
THOSE THE PRESIDENT WENT TO SEE
AND SAID I’LL BRING JOBS BACK
WITH A MASSIVE CORPORATE TAX
CUT, GM’S DROPPING 15,000 JOBS.
>> WE SAW THIS IN THE RECESSION.
I HAVE BEEN TO EACH OF THOSE
PLANTS.
PLANTS. MICHIGAN, OHIO, AND OSHAWA.
THESE ARE TOUNLSWNS THAT ARE BUI
AROUND THOSE PLANTS.
>> WE SAW THAT IN THE WHIRLPOOL
PLANT.
PLANT. >> SHUTS THE PLACE DOWN.
NOW, LOOK, IN ALL OF THOSE
PLACES THERE ARE OTHER THINGS
AROUND IT AND MORE WORRIED ABOUT
THE OHIO PLANT THAN OSHAWA.
SO, THERE’S OTHER STUFF GOING ON
ECONOMICALLY.
ECONOMICALLY. BUT THE SCHOOLS, THE AUTO
DEALERS, THE HAIRDRESSERS, THIS
IS THE THING TO REMEMBER.
WHEN A PLANT SHUTS DOWN, NOT
LOSING A SHIFT.
IN LORDSTOWN FROM THREE TO ONE
SHIFT AND PEOPLE’S LIVELIHOODS.
>> THE VALUE OF THE HOMES.
>> TRY TO SELL A HOUSE.
THE JOB’S GONE AND NEED TO MOVE
AND SELL YOUR HOUSE AND
EVERYBODY ELSE IS SELLING THEIR
HOUSE.
HOUSE. >> WHAT IS MARY BARRA’S JOB
THEN?
THEN? TO SUPPORT THE CITIES OR
OPTIMIZE THE COMPANY?
>> ARGUABLY THESE BLUE COLLAR
WORKERS WHO BUILT CARS FOR THE
LAST 100 YEARS HAVE BEEN
SUPPORTING THEIR CITIES, THEIR
COMPANIES, THEY HAVE HELPED TO
BUILD AMERICA AND THERE’S SOME
DEGREE OF OBLIGATION THAT WE
HAVE TO THESE WORKERS WHO BUILT
OUR COUNTRY.
OUR COUNTRY. >> BUT THEN THE QUESTION IS,
WHEN DOES THAT OBLIGATION BECOME
A PRIORITY FOR THOSE CEOs?
WE HAVE BEEN ON COUNTLESS
ANALYST COULDS.
ANALYST COULDS. WHEN THOSE COMPANIES REPORT
EARNINGS AND THE ANALYSTS ARE
ASKING ABOUT CUSTOMERS, ON
BEHALF OF SHAREHOLDERS.
THEY’RE NOT TALKING ABOUT THE
TOWNS THOSE FACTORIES ARE
LOCATED IN.
LOCATED IN. >> WE HAVE GOT MORE OPEN JOBS
THAN WE HAVE WORKERS.
WHAT WE NEVER DO AHEAD OF TIME
IS THINK ABOUT HOW TO RETRAIN
THEM.
THEM. RIGHT?
RIGHT? WHAT IF EVERYBODY THAT GOT A
PINK SLIP TODAY, THEY DIDN’T GET
A PINK SLIP BUT A PLAN.
>> RETRAINING PROGRAM.
>> WHAT THAT WILL COST.
>> WHOSE JOB IS IT TO DO THAT?
>> GERMANY UNDERSTANDS A LITTLE
BIT OF IT.
WHOSE JOB IS THAT?
VERY, VERY IMPORTANT QUESTION
FOR OUR TIME BECAUSE MUCH MORE
AUTOMATION IS COMING OUR WAY.
THAT’S THE -- EVERY JOB THAT WE