Downsizing Car Companies Burst Media Narrative Of Trump As A Jobs Savior
Trump Benefitted From Fawning Media Coverage After Claiming Credit For Job Creation At Ford And GM
Blog ››› ››› MEDIA MATTERS STAFF
On May 15, The Wall Street Journal reported that Ford Motor Co. may lay off up to 10 percent of its global workforce in a move that could threaten thousands of American jobs. The news that Ford may shed workers highlighted the problematic way media outlets had previously promoted President Donald Trump claiming personal credit for job creation at the company. On May 17, the Journal reported that sliding stock prices at Ford and General Motors (GM), coupled with GM’s plans “to lay off more than 4,000 workers,” may be indicative of an industry-wide slowdown that flies in the face of Trump’s boasts. Mounting job losses and slowing sales at GM would make it the second major car company to face turmoil since Trump falsely claimed credit for the company creating new jobs. From the Journal:
Detroit has been an engine of growth for U.S. employment since the financial crisis, with General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV adding tens of thousands of jobs to keep pace with growing demand and fund autonomous-car engineering and other moonshot programs. Earlier this year, company executives promised to add head count at certain factories in response to criticism from President Donald Trump.
Now, those executives are quickly retreating. GM and Ford are making cuts to their U.S. workforces that could far outpace the job commitments made in recent months amid political pressure. Armed with union contracts that were reworked a decade ago, domestic car companies can respond more rapidly to investor concerns about the bottom line.
GM in recent months has disclosed plans to lay off more than 4,000 workers as demand for certain passenger cars, such as the Chevrolet Malibu and Cadillac CTS, dwindles. Ford is planning to cut 10% of its staff to shore up sagging profit.