Media Lies For GM in Fact Check To Attack Donald Trump

Once again fact-checkers lie to support a narrative when it suits their agenda claiming Donald Trump’s tweet about the GM Chevy Cruz is false.

Once again the corporate media fact-checkers who are supposed to the online arbiters of truth show when a certain narrative suits their own political agenda they will very little fact-checking beyond getting a statement from a corporate or government official and denouncing a claim false without doing any fact-checking or independent investigation into the official’s statement.

This behavior has been is seen repeatedly in U.S government officials claims about overseas wars, police brutality, environment disasters and most recently claims about the U.S. presidential election issues pertaining to hacking of the election as well as vote fraud in the Primaries and the general election.

The latest incident is a tweet from Donald Trump:

Trump Warns GM faces border tax for US sold Cruz's made in Mexico

Trump Warns GM faces border tax for US sold Cruz’s made in Mexico

General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!

GM responded to the tweet with a lie about the Cruze Sedan and a misleading statement about the Cruze hatchback:

General Motors manufactures the Chevrolet Cruze sedan in Lordstown, Ohio. All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.

GM Lies About Production of Chevy Cruze

GM Lies About Production of Chevy Cruze

The Corporate media and corporate fact checkers quickly took a statement from GM at face value without fact checking it and attacked Donald Trump as a liar.

In actuality, GM’s claims are an outright lie. GM does in fact manufacture the Cruze sedan in Mexico and the United States, proof shown below. This comes in the middle of conflicting press releases in which GM announced the layoff of their entire 3rd shift, about 1,200 workers, in their Lordstown, Ohio factory. GM claimed dwindling sales the Cruze Sedan for the layoff, a claim which is also countered below, while in a seperate contradictory move announced their Ramos Arizpe, Mexico factory will produce the Cruze Sedan to make up for excessive demand for the Cruze Sedan.

Additionally, GM just launched the Chevy Cruze  hatchback, which hit the market for the first time in the fall of 2016, in a attempt to go after the 100,000 unit per year hatchback market for this this class. In going after the hatchback market GM chose to tool only their factory in Ramos Arizpe, Mexico with the ability to produce the Cruze hatchback model leaving U.S. factories out of the equation for hatchback production. Meanwhile, the media mislead readers into believing that only a small portion of Cruz hatchbacks are made in Mexico when the are made exclusively in Mexico and also misleads readers in citing U.S sales of 4,500 are only a small number of total Cruze sales for 2016  when in fact the hatchback just hit the consumer market at the end of 2016 and the cited number of hatchback sales likely represents sales for December only and being compared to an entire year of sales for the sedan.

Digging further, the GM playbook for moving manufacturing out of the U.S. is revealed:

  • Overhaul an existing popular model so sales of that model will be sub par.
  • Open a new plant in Mexico to exclusively produce a variation of that model. Claim only a small portion of the variation will be sold in the U.S. while equipping the factory to also produce the original model so the Mexico factory can pickup for excess demand.
  • Perform a limited initial launch of that model variation (aka the hatchback) in the United States.
  • Use Year over Year, Year to Date Sales numbers to claim dwindling sales for the original model  to layoff U.S. staff.
  • Use Year over Year, Month Vs Month Model Year sales to cite higher demand for the original model to justify manufacturing of the original model in Mexico.

How The Media Reported It

US News reports:

General Motors Company (ticker: GM) is pushing back after President-elect Donald Trump early-morning Twitter attack, in which the incoming president took aim at GM for making its Chevrolet Cruze in Mexico and shipping them tax-free to the U.S. for sale.

That’s not the full story, says GM.

“General Motors manufacturers the Chevrolet Cruze sedan in Lordstown, Ohio,” a General Motos spokesman told U.S. News & World Report in a statement Tuesday. “All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio.

GM says it also builds the Cruze hatchback in Mexico to sell in global markets, and only a “small number” of those are sold in the U.S. It did not clarify the number. The hatchback model went on sale in the U.S. for the first time this fall.

ABC echoes the claim:

In another tweet targeting a U.S. company, President-elect Donald Trump threatened Tuesday to slap a tax on General Motors for importing compact cars to the U.S. from Mexico.

But GM imports only a small percentage of its Chevrolet Cruze small cars from Mexico, with the vast majority made at a sprawling factory complex in Lordstown, Ohio, east of Cleveland.

Trump tweeted early Tuesday that GM is sending Mexican-made Cruzes to the U.S. tax-free. He told GM to make the cars in the U.S. “or pay big border tax!”

GM imports only hatchback versions of the Cruze from a factory in Ramos Arizpe, Mexico, and it sold only about 4,500 of them in the U.S. last year, spokesman Patrick Morrissey said. The company sold about 172,000 Cruzes through November. The hatchback, which went on sale in the U.S. in the fall, is built in Mexico for global distribution, Morrissey said.

Cruze hatchback production amounts to less than a day of output at the Lordstown plant, said Glenn Johnson, president of a United Auto Workers union local at the factory. The union, he said, is not protesting the move to build the hatch in Mexico.

Politicact, whose job it is to fact check the claim wrote:

President-elect Donald Trump put General Motors on notice for tariff-free imports of vehicles from Mexico, warning of heavy taxes if vehicles are not instead manufactured in the United States.

“General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border,” Trump tweeted Jan. 3. “Make in U.S.A. or pay big border tax!”

The key to our review is that the president-elect singled out the Mexican-made model of the Chevy Cruze.

The Cruze made in Mexico is a hatchback that does not sell widely in the United States. Chevy Cruze sedans are more popular in the United States — and they are produced in Ohio.

Production of the hatchback model began in mid 2016, said Patrick Morrissey, a General Motors spokesperson, in an email.

Out of 29,000 hatchbacks made in Mexico in 2016 for global markets, 4,500 were sold in the United States, Morrissey said.

[…]

It’s worth pointing out extra context that Chevy Cruze sedans sold in the United States are built in GM’s assembly plant in Lordstown, Ohio. The sedan is more than 40 times as popular among American buyers as the hatchback.

Addicting Info wrote:

And Americans were unforgiving on Twitter in response to Trump’s bullshit and even called out the fact that GM CEO Mary Barra is one of Trump’s economic advisers.

[…]

Trump just flat-out lied to the American people and got busted for it by General Motors. Next time Trump decides to attack an American company he should do his homework first and then look in the mirror because his company has most of their products manufactured in China and Mexico, which make Trump the biggest hypocrite in America.

Fact Checking GM

Claim 1 – All Cruze Sedans Sold in the U.S are made in the U.S.

U.S. news reported “All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio” which ABC also reported while adding “GM imports only hatchback versions of the Cruze“.

Politifact echoed the same “The Cruze made in Mexico is a hatchback that does not sell widely in the United States. Chevy Cruze sedans are more popular in the United States — and they are produced in Ohio.” and also wrote “It’s worth pointing out extra context that Chevy Cruze sedans sold in the United States are built in GM’s assembly plant in Lordstown, Ohio.”

Politfact also writes “The key to our review is that the president-elect singled out the Mexican-made model of the Chevy Cruze” which is entirely false because Politifact totally got it wrong by assuming GM’s statement that U.S. sold sedans are only produced in the U.S.

Proof the Cruze Sedans made in Mexico are produced in the United States.

As can be seen in GM’s VIN Card guide, U.S. Manufacturer vehicles have a 1 in the first digit while vehicles manufactured in Mexico have a 3 for their first digit. The first three digits of the VIN, referred to by GM as the World Make/Manufacturer Identifier, shows that 1G1 are for Chevrolet Passenger Cars made in the United States and 3GI are for passenger cars produced in Mexico.

 

GM Chevy Cruz Vin Card -1 made in US, 3 made in Mexico

GM Chevy Cruz Vin Card – First character “1” indicates made in US, if the first character is “3” it is made in Mexico

A quick search on car dealer websites will shows that Chevrolet Cruze’s are being manufactured in the Mexico are being sold in the United States.

 

For example, from Lone Star Chevrolet

  • Stock # : HS518002
  • VIN : 3G1BF5SM4HS518002
2017 Chevy Cruze Sedan Made in Mexico

2017 Chevy Cruze Sedan Made in Mexico

Claim 2 – Only a small number of Cruz Hatchbacks made in Mexico are sold in the U.S.

The media is also misleading in their report as all Chevorlet Cruze Hatchbacks are made in Mexico. GM chose not to equip their U.S. plant with the ability to manufacturer the Cruze hatchback at all.

U.S. news reports “GM says it also builds the Cruze hatchback in Mexico to sell in global markets, and only a “small number” of those are sold in the U.S.” while Politifact writes “The key to our review is that the president-elect singled out the Mexican-made model of the Chevy Cruze.

Poltifact also echo more disinformation “Production of the hatchback model began in mid 2016, said Patrick Morrissey, a General Motors spokesperson, in an email. Out of 29,000 hatchbacks made in Mexico in 2016 for global markets, 4,500 were sold in the United States,” Morrissey said.

Using this 4,500 Politifact incorrectly notes “The sedan is more than 40 times as popular among American buyers as the hatchback.” Politifact arrives at the 40 times number by comparing the 4,500 hatchback total sales for 2016 to the 188,876 total annual U.S. sales for the Cruze.

This is entirely misleading because while production may have started mid-year the hatchback model apparently didn’t hit the market until December of 2016.

December sales for the Cruz sedan are reported at 17,324 units. If the 4,500 units for the hatchback sales only represent December numbers then the  sedan would only be 4 times more popular than the sedan. But even if it also some how represents November, or even a November and October, it is not fair to included a few months of sales to an entire year of sales.

This ratio is supported by Lone Star Chevy’s stock of sedan’s vs. hatch back models. The dealership has 88 new Cruz sedans in stocks and 24 new Cruz hatchbacks.

US news says only Small number are hatchbacks. Politifact says it is 40 times less popular than the Sedan but are they being misled by GM?

US news says only Small number are hatchbacks. Politifact says it is 40 times less popular than the Sedan but are they being misled by GM?

Note: HNN found several October and Novermber 2016 reports noting the Cruz still didn’t hit markets with GM authority noting it finally arrived on December 2016.

GM Lied - Cruze Sedans Made In Mexico Are Being Sold In The United States

GM Lied – Cruze Sedans Made In Mexico Are Being Sold In The United States

All Chevy Cruze Hatchbacks Are Made in Mexico

All Chevy Cruze Hatchbacks Are Made in Mexico

More Contradictory statement’s from GM

GM Announced in November it was cutting 1,200 jobs in the Lordstown Ohio Facility, citing dwindling sales:

According to The Toledo Blade, dwindling small car sales are responsible for the cuts; the Lordstown plant is responsible for building the 2016 Chevrolet Cruze.

“As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at [Lordstown] in the first quarter of 2017,” the company said in a statement.

GM will invest $668 million in its Toledo transmission plant and $211 million at the Lansing Grand River assembly plants, but neither investment will add any new positions.

But here just a few months earlier: GM Bringing Mexican Made 2016 Chevrolet Cruze To Fill Excess Demand In U.S.

The 2016 Chevrolet Cruze is off to a hot start on the market. So hot, in fact, that General Motors announced a major production change to ensure demand is filled in the United States and Canada.

According to local news affiliate WYTV, GM will begin utilizing existing production capacity at the Ramos Arizpe, Mexico facility to build the 2016 Chevrolet Cruze along with the Lordstown, Ohio plant.

GM made the announcement stating after three shifts of production at Lordstown, demand still outpaces production.

In an effort to meet customer demand for the Chevrolet Cruze, GM will be utilizing existing production capacity in Ramos Arizpe, Mexico, to supplement production at its plant in Lordstown, Ohio.

Cruze vehicles are continuing to arrive in dealers across the U.S. and Canada, and we expect that dealer inventories will increase this month. In May, Cruze retail share was up 2 percentage points and its average transaction price was up substantially from last fall.

Employees at Lordstown were made aware of the news at the beginning of their shifts this past Friday.

So GM launches a new model of the hatchback we can be manufactured only in Mexico, looking to  gain market share into a 100,000 unit per year market and at the same time reduces U.S. production, cutting 1,200 jobs citing dwindling demand for the sedan, but has Mexico’s factory ramp up production due to high demand.

But GM’s claims of dwindling demand really aren’t true.

Year over year the 2017 model sales did well to the previous years sales of the 2015 sales.

However, by citing year to date sales, which conflate the near record 2015 model year sales sold with 2016 model year sales, GM could technically claim sales were dwindling.

  • Chevy Cruze Sales Rise 52 Percent To 22,342 Units In August 2016 – Chevrolet Cruze deliveries in the United States totaled 22,342 units in August 2016, an increase of 52.39 percent compared to the 14,661 units sold in August 2015. In the first eight months of 2016, sales of the compact sedan are down 25.1 percent to 122,796 units.
  • Chevy Cruze Sales Up 8 Percent To 15,216 Units In September 2016 – Chevrolet Cruze deliveries in the United States totaled 15,216 units in September 2016, an increase of 8 percent compared to the 14,032 units sold in September 2015. In the first nine months of 2016, sales of the compact sedan are down 23 percent to 138,012 units.
  • Chevy Cruze Sales Grow 9 Percent To 17,126 Units In October 2016 – Chevrolet Cruze deliveries in the United States totaled 17,126 units in October 2016, an increase of 9 percent compared to the 15,710 units sold in October 2015. In the first ten months of 2016, sales of the compact sedan are down nearly 20 percent to 155,138 units.
  • Chevy Cruze Sales Climb 2 Percent To 16,414 Units In November 2016 – Chevrolet Cruze deliveries in the United States totaled 16,414 units in November 2016, an increase of 2 percent compared to the 16,073 units sold in November 2015. However, in the first eleven months of 2016, sales of the compact sedan are down 18 percent to 171,552 units.

There are numerous stories by the corporate media which claims huge loses, year to date, year over year but those comparisons are unfair because sales of the 2016 Cruze model were horrible. The previous model years sales were nearly an all time record.

When comparing sales to date by model year the 2017 model is back on track.

GM Chevy Cruz - Sales To Date Aug-Dec By Model year

GM Chevy Cruz – Sales To Date Aug-Dec By Model year

Similarly, U.S. Sales By Month compared to previous model years are comparable.

GM Chevy Cruz - Sales By Month By Model Year

GM Chevy Cruz – Sales By Month By Model Year

Here’s more from Zero Hedge:

 

GM Lied To The Public And To Trump About Where Chevrolet Cruze Sedans Sold In The USA Are Assembled

Submitted via Duane of Free Market Shooter

On Tuesday, president-elect Trump tweeted about General Motors, stating the GM was building its Chevrolet Cruze in Mexico, importing them to the US tax-free, and selling them at US car dealers:

 

GM quickly denied Trump’s tweet, and in a press release that same day, the company claimed that all Cruze sedans sold in the US are “built in GM’s assembly plant in Lordstown, Ohio”, and that GM builds the Cruze hatchback for global markets in Mexico, with only a small percentage being sold in the US…

GM

 

and the MSM and other liberal outlets were quick to pounce on GM’s statement, using it to slander the president-elect.  US News, ABC News, and many others, including the Wall Street Journal, all published articles containing the information in GM’s press release.  US News went out of its way to post a clickbait headline which alluded to “the truth” about Trump’s tweet, with the following quotation:

General Motors Company (ticker: GM) is pushing back after President-elect Donald Trump early-morning Twitter attack, in which the incoming president took aim at GM for making its Chevrolet Cruze in Mexico and shipping them tax-free to the U.S. for sale.

 

That’s not the full story, says GM.

 

“General Motors manufacturers the Chevrolet Cruze sedan in Lordstown, Ohio,” a General Motos spokesman told U.S. News & World Report in a statement Tuesday. “All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio.”

 

GM says it also builds the Cruze hatchback in Mexico to sell in global markets, and only a “small number” of those are sold in the U.S. It did not clarify the number. The hatchback model went on sale in the U.S. for the first time this fall.

Of course, the liberal think-tanks like Politifact, ThinkProgress, GOOD, Addicting Info, Salon (whom I refuse to link to), and countless others got in on the act.  Addicting Info in particular went out of its way to imply that Trump was wrong, and dangerously so:

But as a result of Trump’s accusations and threats General Motors’ stock price tumbled briefly and then recovered. Keep in mind that General Motors was nearly wiped out of existence at the beginning of the Great Recession, which would have cost thousands of Americans their jobs. Trump’s attack on General Motors could have harmed the company in a way that would have harmed American workers he the stock price fallen more than it did.

 

Trump just flat-out lied to the American people and got busted for it by General Motors. Next time Trump decides to attack an American company he should do his homework first and then look in the mirror because his company has most of their products manufactured in China and Mexico, which make Trump the biggest hypocrite in America.

It appears that in the MSM’s rush to fact-check Trump and call him hypocritical, no media outlet bothered to fact-check GM as well.  So, who did the fact-checking work that the MSM didn’t bother doing?

Auto enthusiast and Twitter user E.W. Niedermeyer, that’s who.  Niedermeyer brought the GM and Trump saga up on Thursday, January 5th in a series of tweets that began innocently enough…

 

…Niedermeyer quickly got to the nitty-gritty of his argument, noting the the VIN sequence (3G1) used at the beginning of GM cars made in Mexico…

 

…and finally, Niedermeyer provided evidence on where the autos sold in the US were built:

 

Think about that for a second – GM  is selling Cruze sedans manufactured in Mexico, in the same Ohio town that builds Cruze sedans.  And at the same time, GM is brazen enough to say it doesn’t sell Cruze sedans built in Mexico in the US, saying all Cruze sedans in US dealerships are built in its Lordstown, Ohio plant.  And GM did so in the face of the president-elect of the United States accusing the company of building Cruze sedans in Mexico, shipping them to America tax-free, and selling them in your local dealerships. 

Niedermeyer’s entire tweet thread can be viewed here.  Neidermeyer provides ample evidence demonstrating the truth about where GM Cruze sedans sold in the US are built.  Feel free to check the VIN numbers on your local Chevy dealer’s Cruze inventory, and see where they were built for yourself.

GM was caught red-handed lying to the public and to Trump, and we might never have known if it weren’t for everyday people like Niedermeyer.  It is crazy enough to wrap your head around; a regular guy did the fact checking the MSM never bothered to do.  The MSM took GM’s word as gospel in their rush to criticize Trump, without bothering to check if GM was just lying to save its own skin.

If you think GM is somehow more credible than Trump, recall that this isn’t exactly the first time the auto maker has been caught lying.  In fact, they have been caught lying again, and again, and again.  Sometimes their lies result in people losing their lives.  They have been caught lying so many times, it would be impossible to list them all here.  But the MSM gleefully took GM at their word, using any chance it could get to refer to the president-elect as a dangerous, reckless liar, when a simple fact-check has shown GM was falsifying the truth, not Trump.

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