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President Trump threatens to cut all GM subsidies after Lordstown announcement

28 November, 2018, 03:31 | Author: Shawna Walton
  • General Motors To Close Ohio Plant, Thousands Affected

Even as Tuesday's briefing was taking place, Trump tweeted an ominous threat to withdraw all General Motors subsidies in retaliation for the cuts.

Trump told reporters he was not happy with GM's decision to idle a plant in Lordstown, Ohio.

"Special Report" anchor Bret Baier said many people in Middle America support President Trump's tough rhetoric on General Motors after the company announced it will close five North American factories and lay off thousands of US workers.

On Monday, GM announced that it planned to cut 14,000 blue-collar and salaried jobs, or 15 percent of its total workforce, and halt production at five factories (four in the USA and one in Canada) next year in a bid to reduce costs amid slowing sales and changing consumer tastes. Two as-yet unspecified sites outside of North America are also facing the end of the line.

The cuts come on the heels of surprisingly strong third-quarter earnings.

According to The Wall Street Journal, Trump told the GM chief executive Mary Barra that she should stop making cars in China and open a new plant in OH to replace the one that is ending production. As the brand has developed a new vehicle platform to improve their current lineup, it will focus future investments on developing its next generation of battery electric vehicles.

When asked whether there's any consideration of taking steps to help the 14,000 workers being laid off, akin to the subsidies for farmers hurt by Chinese tariffs, Kudlow said GM CEO Mary Barra had told him there is talk of shifting at least some of the workers to other plants in Texas or MI.

GM chief executive Mary Barra said the decision will put the United States car-maker in a better position for the future. We want to make sure we're well-positioned.

"If you are going to have a company that's going to show us their middle finger then I think our government should show them our middle finger as well", Dias said.

GM jumped as much as 7.9 percent to $38.75, the highest since July, as of 11:16 a.m.in NY trading. The stock is still down about 7 percent this year.

The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce.

Overall GM said the shake-up would lead to cost savings of around £4.7 billion by 2020.

GM also said that the company will jettison the Buick LaCrosse, Chevrolet Impala and Cadillac CT6 sedans next year.

"Their (Chevy Cruze) is not selling well".

GM opened the Lordstown plant in the late 1960s in the southwest corner of Trumbull County.

Youngtown is in a Democratic and labor stronghold, where Trump won over a surprising number of voters two years ago because of his promise to bring work back to the U.S. He said he had talked to Barra and informed her that "this country's done a lot for General Motors" and that the company needed to "get back in there soon".

The company has marked a sedan plant in Detroit, a compact vehicle plant in OH, and another assembly plant outside Toronto for possible closure. The Baltimore Operations plant will stop building transmissions, and likewise the Warren Transmission Operations site in MI.

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