The news is disappointing, but the logic is sound. GM needs to invest in its future, and that means focusing on electric and self-driving vehicles. Both are coming to a driveway near you — quicker than you think.
President Trump said GM should stop making vehicles in China. “I think they forgot where they came from.” Not true. What GM and every competitive American company does is follow the customers. Believe it or not, last quarter General Motors sold more vehicles in China than in the United States. Making cars in America for export to China would render them “structurally unprofitable,” an industry analyst told the Journal.
It would be helpful if Trump recognized that being president doesn’t make him economy czar. He can levy tariffs or otherwise badger CEOs, but he can’t force companies to continue to operate factories that aren’t profitable. Employers will do what’s best for their interests, because that’s how they stay in business and, not incidentally, how they pay competitive salaries to their workers.
The old business adage is true: What’s good for General Motors is good for the country.