Detroit Retools: GM Closing Plants; FCA Opening One; Ford Standing Pat

General Motors is being pilloried by its main labor union and politicians of both parties for closing two U.S. plants and cutting some 15,000 white collar jobs. The facts are that GM, a decade after its reorganization under bankruptcy, is oversized for the number of cars it is building now and the number they expect to build per year in the next decade.

Both Ford and FCA are operating more efficiently than GM, let alone foreign competitors like Honda and Toyota. And despite the indignation over GM’s investment in new production in Mexico, while it is closing production in the U.S., critics in Congress and the White House seem to forget that such planning has been made possible by longstanding North American Free Trade Agreement, which has only recently been renegotiated after months of the Trump administration threatening to try and end it. The new agreement, not that much different from the old one, will have to be voted on by the Congress in the New Year.