Trump threatens to cut subsidies for GM after layoff, plant closure announcement

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President Donald Trump said he'll consider killing subsidies for General Motors Co. over the automaker's plan to close factories and cut U.S.jobs, a threat that was met with immediate skepticism on Capitol Hill.

So before heading to Mississipi for a campaign rally, Trump said he had expressed his displeasure to General Motors Chief Executive Mary Barra.

The plant in Lordstown, Ohio, which makes the Chevrolet Cruze compact auto also is on the list, and Barra said the Cruze would no longer be sold in the U.S. Production would stop March 1. The statement continued, "Many of the USA workers impacted by these actions will have the opportunity to shift to other GM plants where we will need more employees to support growth in trucks, crossovers and SUVs". The company has pinned much of its future business plan on consumers switching to battery-powered vehicles, promising to roll out 20 new ones globally by 2023.

"There's disappointment that it seems that GM would rather build its electric cars in China than the United States, and we are going to be looking at certain subsidies regarding electric cars and others, whether they should apply or not". It was about 50 percent cars just five years ago.

Trump tweeted Tuesday afternoon that he is looking into cutting all GM subsidies as he pushes the company to keep open plants in Ohio, Michigan and Maryland.

In a tweet about MI in August he said: "Lots of vehicle and other companies moving back!" For instance, GM plans to add hundreds of workers at its pickup truck assembly plant in Flint, Michigan, Morrissey said.

Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario.

GM's stock rose 5.5 percent after this announcement.

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"GM received record tax breaks as a result of the GOP's tax bill past year, and has eliminated jobs instead of using that tax windfall to invest in American workers", he said in a statement. But Bob Lutz, GM's former vice-chairman, said the company was facing "hard facts".

After the morning announcement, Barra was to head for Washington to speak with White House economic adviser Larry Kudlow in what was described as a previously scheduled meeting, according to a White House official who spoke on condition of anonymity because the official was not authorized to discuss the meeting publicly.

Stefan Kooths, economics expert at the Kieler Institute, claims that the White House's protectionist policies are starting to harm the American economy. "We're sick and exhausted of General Motors shipping all our jobs to Mexico", he said at a press conference in Oshawa, Ontario.

It's not clear precisely what action against GM might be taken, or when, and there are questions about whether the president has the authority to act without congressional approval.

"We are right-sizing capacity for the realities of the marketplace", Barra said.

The company has marked a sedan plant in Detroit, a compact auto plant in OH, and another assembly plant outside Toronto for possible closure. Some US workers would transfer to truck and SUV plants where GM is increasing output, the company said. The factory is still in operation and now builds the Sonic and the Bolt electric auto.

GM sold its South African commercial-vehicle manufacturing plant and other operations to Isuzu Motors in 2017 and phased out its Chevrolet brand there.

After we are sworn in, Jon Husted and I will be visiting the Detroit Auto Show in January to make our case in-person to GM about the future of the plant.

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