Trump Threatens to End GM Electric-Car Subsidies, Without Saying How

Trump Threatens to End GM Electric-Car Subsidies, Without Saying How

I am here to protect America's Workers! Wall Street cheered the actions, while U.S. and Canadian leaders expressed outrage. "He needs to step up to the plate and do what he said".

GM said on Monday that it will close two plants in metro Detroit as well as plants in OH and Canada.

"I've seen it, I've read some of it, and it's fine", he said of the report, which was written by a dozen USA government agencies and departments.

"I have no doubt that, in a not-too-distant future, they'll put something else".

This time around, wrenching change in buyer behaviour could cost GM auto plants in Michigan, Ohio and Ontario their future.

Baier noted that GM's stock "took a tumble" after Trump's tweet, falling by more than 3 percent as of 3:00pm ET Tuesday.

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Just a short while later, Valley lawmakers and state officials began reacting to the news that at least temporarily GM Lordstown will close its doors.

And Trump himself is crystallizing that disappointment, threatening to pull federal help for the automaker if it follows through on plans to build new interconnected, electric-powered vehicles outside the USA - particularly in China, the president's main trade rival. Barra said the company will double resources dedicated to electric and self-driving vehicles over the next two years. The company said it will cut executive ranks by 25 percent to "streamline decision making".

During a July 2017 rally in Youngstown, the president told supporters, "Don't sell your house" because the jobs are "all coming back".

Ontario Premier Doug Ford said he talked to the head of GM on Sunday and was told "the ship has already left the dock" when he asked if there was anything Ontario could do. He said there were tears and anger in the plant Monday when the news was announced. Two as-yet unspecified sites outside of North America are also facing the end of the line.

"Their vehicle (Chevrolet Cruze) is not selling well", he said.

"GM is committed to maintaining a strong manufacturing presence in the US, as evidenced by our more than $22 billion investments in USA operations since 2009", the company wrote. Kudlow also said the considering adding "certain subsidies regarding electric cars" to keep GM business from going to China, although Mr. Trump's tweets would seem to contradict that. I spend more time around them than my own family.

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Lordstown Mayor Arno Hill was more forgiving. He said the decision to halt sales of the Chevrolet Cruze had "nothing to do with tariffs" but was because of poor sales.

During the financial crisis a decade ago, the U.S. Treasury Department kept GM alive by investing $49.5 billion in both equity and debt, giving the automaker the only financing available to get through bankruptcy. GM propulsion plants in White Marsh, Md., and Warren, Mich., are also due to close as well.

GM's announcement has been met with wide-ranging criticism, led by United States president Donald Trump who told overseas reporters that the auto-maker should replace the slow-selling Cruze built at Lordstown with a more popular model. He said the first political rally he attended was the one a year ago in Youngstown where Trump told voters not to sell their homes.

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.

"I don't know that's going to be a response that actually gets much traction around here", South Dakota Senator John Thune told reporters.

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