A recent article in The Times sheds some light on the much talked about negative impact of tariffs on GM's auto sales.
GM announced it will report record sales and profits for 2018. Then it announced it will close five auto plants and lay off 14,000 workers. The company said this is due to the president's tariffs.
However, GM continues to move production to Mexico. In fact, the automaker has increased production in Mexico by 300,000 cars and is now the No. 2 producer in Mexico.
These plant closings are not the result of lower profits or tariffs, but by GM's strategy to move production out of the U.S. The result is elimination of jobs that allow consumers to buy these cars and trucks. Sounds like a poor strategy to support U.S. job growth.
Who knows, maybe the vehicle tariffs will be so high, everyone will buy Fords!
Jack Gillen, Valparaiso