>>> FOLLOWING THE NEWS THAT GENERAL MOTORS WILL CLOSE
MULTIPLE FACTORIES AND LAY OFF
MORE THAN 14,000 WORKERS,
PRESIDENT TRUMP IS RENEWING HIS
THREAT TO PUT TARIFFS ON AUTO
IMPORTS.
IMPORTS. PRESIDENT TRUMP TWEETED
YESTERDAY THE REASON THE SMALL
TRUCK BUSINESS IN THE UNITED
STATES IS A GO-TO FAVORITE IS
TARIFFS OF 25% HAVE BEEN PUT ON
SMALL TRUCKS COMING INTO OUR
CUB.
CUB. IT IS CALLED THE CHICKEN TAX.
IF WE DID THAT WITH CARS COMING
IN, MANY MORE CARS WOULD BE
BUILT HERE.
BUILT HERE. THE COUNTRIES THAT SEND US CARS
HAVE TAKEN ADVANTAGE OF THE U.S.
FOR DECADES.
FOR DECADES. THE PRESIDENT HAS GREAT POWER ON
THIS ISSUE BECAUSE OF THE GM
EVENT.
EVENT. IT IS BEING STUDIED NOW.
THE PRESIDENT HAS BEEN STUDYING
AUTO TARIFFS FOR MONTHS.
IN ADDITION, WHILE TRUMP SAYS HE
HAS GREAT POWER, THE ONLY WAY
THE WHITE HOUSE CAN IMPOSE
TARIFFS ON AUTO IMPORTS IS IF
THE COMMERCE LEVEL CONCLUDES THE
CURRENT LEVEL OF IMPORTS POSES A
NATIONAL SECURITY THREAT.
SHARES OF GENERAL MOTORS FELL TO
THEIR LOWS ON THE DAY AFTER THE
PRESIDENT’S TWEET.
PRESIDENT’S TWEET. JOINING US NOW, EUGENE SCOTT AND
STEVE RATNER.
STEVE RATNER. HE’S OUT WITH A NEW OP-ED IN
THIS MORNING’S "NEW YORK TIMES,"
TRUMP IS WRONG ABOUT THE GENERAL
MOTORS BAILOUT.
MOTORS BAILOUT. GOOD MORNING.
GOOD MORNING. THE PRESIDENT’S TWEET, GO.
>> SO THE VERY FIRST PART
ADDRESSES THE PRESIDENT’S TWEET
ABOUT FOREIGN IMPORTS.
THE FACT OF THE MATTER IS
FOREIGN IMPORTS HAVE STAYED
REMARKABLY STABLE OVER SEVERAL
DECADES HOVERING IN THIS 20% TO
30% RANGE.
30% RANGE. SO, IN FACT, THERE IS NO
IMMEDIATE UPSURGE IN IMPORTS OR
ANYTHING LIKE THAT THAT IS
CAUSING THIS PROBLEM.
GM’S ISSUES STEM FROM SOME OTHER
FACTORS THAT WE CAN TALK ABOUT.
>> SO THE PRESIDENT’S TWEETS ARE
COMPLETELY OFF BASE?
IS THERE ANYTHING IN THERE THAT
YOU CAN SINK YOUR TEETH INTO?
WE CAN CHANGE ALL THAT, BUT THE
FACT IS, LOOK, WE DON’T IMPORT
ANY HECARS FROM CHINA.
WE DON’T.
WE DON’T. THE PRESIDENT TALKED ABOUT
CLOSING PLANTS IN CHINA.
WE DON’T IMPORT THOSE.
THOSE CARS STAY IN CHINA.
>> SO GM IS CHANGING ITS MODEL
TO THEY’RE MAKING THE WRONG KIND
OF CARS FOR MANY YEARS AND THEY
HAVE TO CHANGE THAT TO REMAIN
VIABLE.
VIABLE. >> THE SALES OF CARS HAS
DECLINED STEADILY AND MEANWHILE
THE SHARE OF SALES OF SUVs HAS
BEEN RISING STEADILY.
GM DOES NOT MAKE EXACTLY WHAT
CONSUMERS WANT TO BUY.
THOSE CONSUMERS SWITCHING TO
SUVs, THEY’RE NOT BUYING CHEVY
SUBURBANS.
SUBURBANS. THEY’RE LOOKING FOR RAV4s.
SO WHEN YOU LOOK AT THE PLANTS
GM IS CLOSING, THEY FALL INTO
TWO BUCKETS, CAR PLANTS BECAUSE
AMERICANS AREN’T BUYING CARS AS
MUCH ANY MORE AND ENGINE AND
TRANSMISSION PLANTS BECAUSE AS
WE GO TO ELECTRIC CARS, YOU
DON’T NEED TO MAKE TRANSMISSIONS
ANY MORE.
ANY MORE. SO THEY’RE POSITIONING
THEMSELVES FOR THE FUTURE.
>> SO WHAT CAN THE TRUMP
ADMINISTRATION ACTUALLY DO TO
HELP THE PROBLEM INSTEAD OF
DONALD TRUMP TWEETING OUT
FACTUALLY INACCURATE TWEETS THAT
HAVE NO BASIS IN REALITY?
>> THE WHOLE POINT OF THE
EXERCISE IS TO GET GENERAL
MOTORS AND THE OTHER CAR
COMPANIES TO MAKE MORE
ELECTRICER CARS, NOT FEWER
ELECTRIC CARS.
ELECTRIC CARS. SO HIS IDEA OF A POLICY RESPONSE
IS MORE OR LESS THE OPPOSITE OF
WHAT YOU OR I WOULD DO IF WE
WERE TRYING TO RESPOND TO THIS
PROBLEM.
PROBLEM. GM IS WORKING THROUGH IT.
CAR SALES ARE STARTING TO
FLATTEN OUT.
FLATTEN OUT. MILES DRIVEN IS START TO GO
FLATTEN OUT.
FLATTEN OUT. WHILE GM IS NOT PERFECT, I THINK
THEY’RE TRYING TO GET AHEAD OF
THE CURVE IN TERMS OF WHAT’S
REALLY GOING ON AS OPPOSED TO
PUTTING THEIR HEAD IN THE SAND
THE WAY THEY DID BEFORE THEY GOT
IN TROUBLE.
IN TROUBLE. >> OUT IN OHIO, THERE WERE
PEOPLE WORKING THREE SHIFTS DOWN
TO TWO SHIFTS DOWN TO ONE SHIFT
AND NOW NO MORE SHIFTS.
I CAN’T HELP BUT THINK OF THE
MEN AND WOMEN WHO WORKED THEIR
ALL THEIR LIVES WHO MIGHT BE 50
TO 55 YEARS OF AGE WHO NOW HAVE
NO JOB WITH GM.
THIS IS EXACTLY THE BARREL OF
VOTERS THAT DONALD TRUMP WENT
AFTER, ATTRACTED AND GOT TO VOTE
FOR HIM WITH HIS PROMISES AND
NOW THEY’RE BACK ON THE STREET
AGAIN.
AGAIN. THIS IS A SAD HUMAN STORY.
>> TRUMP WON OHIO IN PART
BECAUSE HE TOLD THESE VOTERS
THAT HE WOULD NEVER CLOSE NOT
EVEN ONE SINGLE PLANT.
THESE ARE PROLSS THAT THE
PRESIDENT PERHAPS SHOULD NOT
HAVE MADE BECAUSE HE DOES NOT
HAVE COMPLETE CONTROL OVER THEM.
AND HE’S TELLING HIS VOTERS THAT
THE PROBLEM EXISTS BECAUSE OF
SOME THINGS THAT AREN’T TRUE.
THE REALITY IS FEWER PEOPLE ARE
BUYING CARS IN THE UNITED STATES
BECAUSE MOST OF THE POPULATION
LIVES IN URBAN AREAS.
THESE SPACES ARE ARE MORE
WALKABLE.
WALKABLE. FAMILIES ARE SMALLER AND LESS
DEPENDANT ON CARS.
AND INSTEAD OF BLAMING
INTERNATIONAL GOVERNMENTS OR
BUSINESSES AWAY FROM AMERICAN
WORKERS, THE PRESIDENT PERHAPS
SHOULD HAVE SAID MAYBE I SHOULD
NOT HAVE MADE THESE PROMISES,
MAYBE I SHOULD HAVE EN CURVED
THESE VOTERS TO PURSUE OTHER
YOU’RE OPPORTUNITIES AND LET
THEM KNOW I COULD DEVELOP THEIR
COMMUNITIES ECONOMICALLY WITHOUT
PRESENTING FALSESIESITIES WITHOU
CREATING ENEMIES.
CREATING ENEMIES. >>.
>>. >> WHAT IS THE REALITY ABOUT
AUTO JOBS RIGHT NOW?
>> UNDER TRUMP, WE’VE ADD
343,000 JOBS, SLOWER THAN UNDER
THAT OF OBAMA.
BUT FOR ALL THE FACTORS THAT
WE’VE BEEN DISCUSSING THIS
MORNING, ALL THE FACTORS WE’VE
BEEN DISCUSSING THIS MORNING ARE
OVERARCHING ISSUES FACING THE
INDUSTRY WHICH MAKES DONALD
TRUMP’S CAMPAIGN PROMISE, AS I
SAID, A BIT OF WISHFUL THINKING
BECAUSE WE ARE NOT GOING TO BE
ABLE TO RESTORE THAT LEVEL OF
MANUFACTURING IN THIS COUNTRY.
WE CAN DO SOME THINGS BETTER,
BUT --
BUT -- >> WHAT IS IT LIKE IN CAR SALES,
TELL US, IF ANYTHING ABOUT THE
LARGER ECONOMY?
LARGER ECONOMY? >> PEOPLE ARE DRIVING FEWER
MILES, DOING RIDE SHARES.
THAT SAID, WE’RE IN THE LATE
STAGES OF AN ECONOMIC RECOVERY.
WE’VE BEEN AT A HIGH LEVEL OF
CAR SALES FOR A LONG TIME.
AFFORDABILITY IS GOING DOWN.
AS INTEREST RATES GO UP, MOST
CARS ARE FINANCED IN THIS
COUNTRY.
COUNTRY. THEY DON’T BUY AS MANY.
SO YES, IT STARTS TO FEEL LIKE
IT’S A PART OF AN OVERALL
FRAGILITY IN THIS COUNTRY THAT
IS WORRISOME.
IS WORRISOME. >>> STILL AHEAD, THE SENATE
VOTES TO ADVANCE A BILL THAT
WOULD END ALL U.S. INVOLVEMENT
IN THE SAUDI-LED WAR IN YEMENEN.
WHAT IT MEANS FOR U.S. RELATIONS
WITH SAUDI ARABIA, WHEN "MORNING