GM Has Really Stepped in it Now

Remember how GM announced an aggressive restructuring, shutting down unprofitable vehicle lines in the U.S. and Canada? People were already angry about that decision, from Democrats in Congress to President Trump in the White House. It couldn’t possibly get any worse, right?

Wrong. News has leaked that GM is now the top maker of vehicles in Mexico, and people are livid. Nissan used to be top dog south of the border, but GM stepped up production there 3.6 percent. Of course, the fact Nissan scaled back production 10 percent last year also helped, but nobody seems to be focusing on that.

Predictably, President Trump, various members of Congress, and union officials all are seeing red. After all, the U.S. government bailed out GM with many thinking that meant the automaker would do all it could to support the country’s economy. Instead, it’s acting like a corporation driven by a desire to maximize profits, and that’s upsetting.

The result is lawmakers are talking about taking steps to change policies so automakers feel incentivized to build cars in the U.S. and not elsewhere. Exactly what those would be and what effect they’d have remains to be seen.