Opinion | Trump Is Wrong About the General Motors Bailout – By Steven Rattner – The New York Times

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By Steven Rattner
Mr. Rattner was counselor to the Treasury secretary and head of the White House Auto Task Force in the Obama administration.

Nov. 28, 2018,    149


The empty parking lot at the General Motors plant in Lordstown, Ohio, during what used to be the second shift. G.M. announced Monday that it would completely shut down the factory, which produces the Chevy Cruze sedan, in March.
Credit    Allison Farrand for The New York Times

In 2016, as he crisscrossed the country for his presidential campaign, Donald Trump promised repeatedly that he would make American factories great again. “My plan includes a pledge to restore manufacturing in the United States,” he told a cheering crowd in the nation’s automobile capital, Detroit.

In truth, Mr. Trump’s promise was false hope, a cynical campaign pledge divorced from economic reality. That was illustrated vividly this week when General Motors announced that it would cut about 14,000 jobs.

Mr. Trump promptly attacked the company, but he is tilting at the wrong windmill: Rather than some arbitrary downsizing, the company’s decision was a rational response to many worrisome factors.

Its sales have begun to soften. Consumers have shown little interest in small cars, and G.M. lacks a strong line of crossover vehicles. Like many of its competitors, the company continues to increase production at less costly Mexican plants. Moves toward electric vehicles, in particular, will vastly change the types of factories and workers that G.M. needs. What’s more, the whole industry faces disruption by the sudden rise of ride-sharing apps and other innovations that will discourage vehicle sales.

via Opinion | Trump Is Wrong About the General Motors Bailout – The New York Times