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Of course. This plant closing decision was not announced on a whim.

I'm sure Barra and the management team knew this would create a firestorm. That they went forward with it shows just how much this is not the old GM and how much they don't want to be asking for another bailout. Remember, Ford will be doing something similar, they just haven't had the balls to cut bait yet and have pussy-footed around the subject of plant closings and layoffs.

Treasury bills have just undergone an inverted yield. Almost every recession was proceeded by this event. That doesn't mean a recession WILL happen, but it's a harbinger. Investors are shortening the duration of their bond exposure and even reducing stock exposure. Maybe nothing will happen, but some are prepping for bad financial market movements.

https://www.cnbc.com/2018/12/05/why...hould-fear-the-big-yield-curve-inversion.html
https://www.marketwatch.com/story/b...treasury-yield-curve-fully-inverts-2018-12-04

Of course, some say it's all just noise, no need to worry.

https://www.cnbc.com/video/2018/12/...lin-calls-treasury-yield-inversion-noise.html

I think GM sees a softening and is taking steps to soften the blow on it's bottom line if/when the storm hits. It's also going to plow a lot of money into EV's, AV's (that's what they said).
 

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Certainly, she was prepared ... no doubt had people help her prepare and practice responses.

Barra on Wednesday at the same press conference defended the decisions as a response to market conditions that have resulted of a shifting U.S. consumer preferences that have made sedans tough to sell.

"We are in an industry that is transforming faster than I've ever seen in my38 year career," she said. "What we are trying to is make sure that General Motors is strong and that we're in a leadership position with technologies like electrification and autonomous vehicles and connectivity, because that's what customers want. That's where industry is going."

Barra deflected criticism of GM's decision that invokes the company's receipt of nearly $50 billion in federal assistance in the 2008 and 2009 auto bailouts, which the company notes has repaid.

"Since 2009, we have invested $22 billion in the United States, and in the last couple of years we've invested several more billions of dollars and we'll continue to do that," Barra said.

"We will be forever grateful for the assistance that the U.S. government provided General Motors, and we're trying to make sure we're good corporate citizens and continue to provide jobs and provide vehicles and transportation that consumers want in this country," she continued. "That's what I think is the most responsible thing that we can do to thank the American taxpayers for what they did for us."

 

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Most of this is based on attempted political grandstanding. I find it hard to believe that any of the politicians involved actually care one bit about the American jobs that were lost. In fact, I'm almost certain that Mary Barra cares far more.

However, it's really hard to defend keeping factories dedicated to building internal combustion engines open when 20 of your upcoming vehicles won't be using them. After giving fossil-fuel companies billions of dollars in subsidies, no one in Washington would be raising a fuss about coal miners or tar sands workers being laid off.
 

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From the article:

Barra also met Wednesday with incoming U.S. representatives from Michigan. Rashida Tlaib, Haley Stevens, Elissa Slotkin and Andy Levin, all Democrat, will be in Boston for training and can't attend the Barra's meeting on Thursday with Michigan lawmakers in person. Michigan's congressional delegation will meet with her at 2 p.m.

Tlaib said in a statement after the meeting: "From the 1,300 homes, churches, and shops in Poletown that were seized and bulldozed to build the Detroit-Hamtramck plant, to the $51 billion public bailout that lost hardworking taxpayers more than $11 billion, we have paid a terribly steep price to placate and keep GM afloat.

"Now, as we fight to rebuild our regional economy and create living-wage jobs, GM is repaying our sacrifice and investment by slashing thousands of jobs and closing the plant an entire neighborhood was torn down to build," Tlaib continued. "I’ll always stand in solidarity with workers and for what’s right and this is simply wrong. GM's announcement reaffirms my commitment to demanding binding community benefits agreements whenever a wealthy corporation is lining up for public subsidies.”
Hit the nail on the head. I'm sure there's some corporate double-speak to whitewash this too.

I'm all in on capitalism, but this puts the ugliest possible face on it. I don't expect GM to keep making cars at a loss. I expect them to develop products that will sell. They're failing at this in a big way, save for the light truck market.

How do you fix a declining sedan market? Open a new product: Blazer line in Mexico. I'm sure the folks in Ontario, Ohio, Michigan and Maryland really are itching to get their hands on a Blazer right now. Maybe not for purchase though. :rolleyes:
 

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Treasury bills have just undergone an inverted yield. Almost every recession was proceeded by this event.

Of course, some say it's all just noise, no need to worry.
Here's what Edward Jones has to say.

Flattening yield curve back in the spotlight - Market anxiety was further heightened by renewed flattening in the yield curve. In particular, two-year U.S. interest rates are now above five-year rates, reigniting fears of an inverted yield curve and the belief that this may signal an economic downturn ahead. We'd note the following:
-- The 2- to 5-year segment of the yield curve is a rather narrow slice of the rate spectrum and does not fully represent an inversion of the yield curve. For perspective, an inverted yield curve (when short interest rates are higher than long rates) does have a track record of signaling economic weakness, since it indicates an environment in which higher short-term rates reflect tightening monetary (Federal Reserve) policy and lower longer-term rates signal potentially weaker expectations for inflation and growth.
-- We agree that a fully inverted yield curve is a cautious signal, but historically a more reliable measure is 3-month rates compared to 10-year rates. This measure of the yield curve is flatter, but still positively sloped rather than inverted. We think this is consistent with our view that we are in the latter stages of the cycle, but a recession is not imminent.
-- This is not new. We have seen the market panic over the flatter yield curve several times in the past few years. Traditionally, a flattening yield curve is a sign of a maturing economic cycle, not the end of it. In fact, in the past, even when the yield curve has inverted, a recession did not emerge for an extended period of time. We don't dismiss the risks that are prevalent in today's investment environment, but we think the risk of a recession in 2019 is quite low. We expect the result will likely be ongoing volatility, not the imminent end of this bull market.
 

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Treasury bills have just undergone an inverted yield.
Here's what Edward Jones has to say.

-- This is not new. We have seen the market panic over the flatter yield curve several times in the past few years. Traditionally, a flattening yield curve is a sign of a maturing economic cycle, not the end of it. In fact, in the past, even when the yield curve has inverted, a recession did not emerge for an extended period of time. We don't dismiss the risks that are prevalent in today's investment environment, but we think the risk of a recession in 2019 is quite low. We expect the result will likely be ongoing volatility, not the imminent end of this bull market.
Yep, yep, I agree. Shall we wander off into an off-topic thread split now?

The bots are having a field day with our markets. Lots of buying opportunities for the high frequency trader. I suspect that it's the whole point.

I wonder if we're all having an Elon Musk moment here, with all the shorts pushing bear market propaganda across the board. The tech sector is being hit especially hard.
 

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I also heard that part of the plant closings were to focus on EV futures. So I don't get discontinuing the Volt. We own one and it is great. Our other car is electric only. It is just impossible or at least unrealistic to travel the country on just EV. The Volt seems the perfect solution. We like the Volt much better than the Prius we owned previously. I want to see them improve it - like make it capable of fast charging like the Tesla - not discontinue it.
 
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