Trump’s Doing, GM’s Contribution

Published in Frankfurter Rundschau
(Germany) on 27 November 2018
by Stefan Koch (link to originallink to original)
Translated from by Sandra Alexander. Edited by Arielle Eirienne.
The announced plant shutdowns of the U.S. carmaker are a hard blow to Trump’s economic policy.

The announced job cuts at carmaker General Motors cut U.S. President Donald Trump to the quick. In Trump’s strongholds in Ohio and Michigan, of all places, the lights are set to go out in several plants because costs are skyrocketing. Trump alone is to blame for the rising expenditures because since the spring, carmakers have had to pay import charges of 10 percent on aluminum and 25 percent on steel.

The special steel that is used in modern vehicles cannot be quickly produced in the American market. Various steel works which have recently ramped up production are focusing on quantity rather than quality.

GM is undoubtedly facing a fundamental reorientation. Increasingly, electric cars and self-driving vehicles are set to take the place of large limousines and pickup trucks. All of the reforms are difficult, given the explosion in costs for materials.

We can only hope that Trump and his economic advisor Robert Lighthizer do not forget the warnings from domestic carmakers the next time they talk to the Europeans about trade-related matters.


Die angekündigten Werksschließungen des US-Autoherstellers treffen Trumps Wirtschaftspolitik hart.

Der angekündigte Stellenabbau des Autobauers GM trifft US-Präsident Donald Trump ins Mark. Ausgerechnet in Trumps Hochburgen in den Bundesstaaten Michigan und Ohio sollen in mehreren Werken die Lichter ausgehen, weil die Kosten in die Höhe schießen. Die gestiegenen Ausgaben hat sich Trump ganz allein zuzuschreiben, da die Autobauer seit dem Frühjahr Importaufschläge von zehn Prozent auf Aluminium und von 25 Prozent auf Stahl zu zahlen haben.

Der Spezialstahl, der in modernen Fahrzeugen verwendet wird, lässt sich nicht auf die Schnelle auf dem US-Markt herstellen. Diverse Stahlwerke, die in den Bundesstaaten Pennsylvania und Ohio in jüngster Zeit ihre Produktion wieder hochfuhren, setzen eher auf Masse als auf Klasse.

Ohne Zweifel steht GM vor einer grundlegenden Neuorientierung. An die Stelle der großen Limousinen und der schweren Pritschenwagen sollen verstärkt Elektroautos und selbstfahrende Fahrzeuge treten. All die Reformen fallen angesichts der Kostenexplosion bei den Materialien jedoch doppelt schwer.

Bleibt nur zu hoffen, dass Trump und sein Wirtschaftsberater Robert Lighthizer die Warnungen der einheimischen Autobauer nicht vergessen, wenn sie das nächste Mal mit den Europäern über Handelsfragen sprechen.
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