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Mon Jun 10, 2019, 04:46 AM

Ohio members of Congress disappointed after meeting with GM CEO Mary Barra

WASHINGTON, D. C. - After a half hour meeting with General Motors CEO Mary Barra, Ohio members of Congress said they weren’t convinced the company’s proposed sale of its Lordstown plant to an electric vehicle startup would come close to replacing jobs lost by GM’s decision to stop making the Chevrolet Cruze in Ohio.

Although Barra called her exchange with Ohio’s congressional delegation “productive” as she left the Capitol Hill meeting, Ohio members of Congress who spoke with the media afterwards had a different assessment.

“This is a sad story right now," Republican U.S. Sen. Rob Portman told reporters, bemoaning the company’s decision to abandon one of its most efficient factories and its refusal, so far, to consider it for production of upcoming models of General Motors electric vehicles. He expressed skepticism that a Cincinnati company interested in buying the plant to make its own electric vehicles will be able to raise the $300 million to $400 million needed to bring the plant “up to speed.”

Democratic Sen. Sherrod Brown described the Workhorse Group affiliate that might buy the plant as “undercapitalized,” and noted the 400 people that it might eventually hire are a small fraction of the 4,500 workers the Lordstown plant employed when it operated at full capacity. While GM has offered jobs at other plants to some of the displaced workers, Brown and Portman noted it is difficult for many workers to relocate. Brown suggested that General Motors could relocate some of its Mexican production to Ohio as a way to save the plant.

Read more: https://www.cleveland.com/open/2019/06/ohio-members-of-congress-disappointed-after-meeting-with-gm-ceo-mary-barra-video.html

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Reply Ohio members of Congress disappointed after meeting with GM CEO Mary Barra (Original post)
TexasTowelie Jun 2019 OP
SWBTATTReg Jun 2019 #1
Ohiogal Jun 2019 #2
delisen Jun 2019 #3

Response to TexasTowelie (Original post)

Mon Jun 10, 2019, 07:17 AM

1. Difficult situation for all but if Ohio doesn't quit complaining about the 'undercapitalized' ...

company and that it would be bringing only 400 people vs. the 4500 people that worked there, etc., the company is going to start looking elsewhere for locating their plant since Ohio doesn't seem to want to help this company already located in Ohio either (in Cincinnati Ohio now).

The new car market has been going quite well for some time and probably is getting kind of oversold by now.

Perhaps going to something different might be a good thing?

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Response to TexasTowelie (Original post)

Mon Jun 10, 2019, 09:03 AM

2. 400 jobs is nothing to sneeze at

But that’s only happening if quite a few things fall into place that don’t seem very likely.

Obvious to me that Barra just wants this albatross off her back .... and GM says gee too bad for you Ohio people, but that’s just business, suck it up.

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Response to TexasTowelie (Original post)

Mon Jun 10, 2019, 10:03 AM

3. GM is not sentimental; what did Ohio expect?

Supposedly The US government and taxpayers lost 11 billion on bailing out GM although GM claims otherwise


The U.S. government’s $80.7 billion bailout of the auto industry lasted from December 2008 to December 2014. The U.S. Department of the Treasury used funds from the Troubled Asset Relief Program. In the end, taxpayers lost $10.2 billion.

The Big Three automakers asked Congress for help similar to the bank bailout. They warned that General Motors Company and Chrysler LLC faced bankruptcy and the loss of 1 million jobs. The Ford Motor Company didn't need the funds since it had already cut costs. But it asked to be included so it wouldn't suffer by competing with companies who already had government subsidies.

The Treasury Department lent money and bought stock ownership in GM and Chrysler. It provided incentives to spur new car purchases. In effect, the government nationalized GM and Chrysler just as it did Fannie Mae, Freddie Mac, and the American International Group.

Bailout Details
Here's the bailout breakdown. It shows what the government invested. It then shows what Treasury sold the shares for, including what it received in its debt repayment. It then calculates the taxpayer’s profit or loss.

Company Invested Sold For Profit/Loss Date Bailout Ended
GM $51.0 billion $39.7 billion -$11.3 billion Dec. 9, 2013
GMAC (Ally) $17.2 billion $19.6 billion +$2.4 billion Dec. 18, 2014
Chrysler $12.5 billion $11.2 billion -$1.3 billion May 2011
TOTAL $80.7 billion $70.5 billion - $10.2 billion

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