Analyst: Outsourcing American Jobs Responsible for GM Layoffs, Not Tariffs

Breitbart | 12/26/2018 | Staff
tiana_101 (Posted by) Level 3
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The multinational corporate business model of outsourcing and offshoring Americans’ jobs overseas to cheap labor foreign countries is responsible for General Motors’ (GM) recently announced mass layoffs of American workers, a trade analyst says.

Coalition for a Prosperous America Research Director Jeff Ferry details in new analysis that the recent announcement by GM to lay off 14,700 workers in North America — including 3,300 American factory workers — is the end result of the corporation’s outsourcing business model.

GM - Production - Plants - Detroit-Hamtramck - Warren

In 2019, GM expects to stop production at four American plants, including Detroit-Hamtramck and Warren Transmission in Michigan, Lordstown Assembly in Ohio, and Baltimore Operations in Maryland. This comes after GM laid off about 1,500 American workers in Lordstown earlier this year while their Mexico production remained unaffected.

Ferry’s research reveals that GM is one of the “most aggressive” automakers in terms of outsourcing their U.S. production to Mexico.

GM - Production - Units - Level - Ferry

“GM’s Mexican production is up by 300,000 units over the 2008 level,” Ferry notes.

“… GM’s US vehicle production fell by some 330,000 units in 2017, while its production in Mexico rose by 126,000 last year,” Ferry writes. “Ford is now the number one producer of vehicles in the US.”

Coalition - Prosperous - America

(Coalition for a Prosperous America)

(Coalition for a Prosperous America)

Closures - Month - GM - US - Production

“With the closures announced last month, it’s likely that GM’s US production will continue to fall, while its Mexican production rises,” Ferry writes. “If GM wasn’t loading up its Mexican plants, but instead shifted...
(Excerpt) Read more at: Breitbart
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