Rep. Alexandria Ocasio-Cortez (D-NY) has criticized CNBC’s Jim Cramer for suggesting that the Big Three automakers temporarily move production to Mexico amid the ongoing United Auto Workers, or UAW, strike.
What Happened: Amid the UAW strike that has disrupted operations for Detroit’s major automakers, Cramer made a controversial proposal.
He suggested that General Motors Corp. GM, Ford Motor Co. F, and Stellantis NV STLA should relocate their auto production to Mexico for two years.
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The host of CNBC’s “Mad Money” argued that by paying Mexican workers considerably lower wages of $5 an hour and benefiting from lax pollution regulations, the Big Three could save on labor costs and avoid the challenges posed by the UAW strike.
Cramer’s unexpected suggestion, aired during a CNBC segment, caught many off-guard, including his co-hosts. “Glad to see you’re standing up for the American worker, Jim. Thanks for that.”
It also drew the ire of AOC, who questioned the suggestion. “People say stuff like this and then call themselves patriotic.”
Why It’s Important: The UAW strike, initiated due to disagreements over wage increases and other benefits, has had far-reaching consequences, with a reported supply chain crisis. This strike has led to concerns about parts shortages, with GM acknowledging that it may run out of essential components for its operations.
However, UAW has announced that it would resume negotiations on Saturday.
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