President Trump threatens to cut all GM subsidies after Lordstown announcement

President Trump threatens to cut all GM subsidies after Lordstown announcement

President Trump threatens to cut all GM subsidies after Lordstown announcement

The biggest federal subsidy for electric cars made by GM is about to go away on its own. She said the company could increase its investments in electronic and autonomous vehicles.

A Canadian union, Unifor, which represents most unionized auto workers in Canada, said Sunday it was informed by GM that there would be no product allocated to the plant in Oshawa, about 37 miles (60 km) from Toronto, after December 2019.

"This industry is changing very rapidly", Barra told reporters Monday in Detroit. "So I think you're going to see something else happen there, but I'm not happy about it", he said. "That's OH, and you better get back in there soon'". I believe they'll be opening up something else.

In a press briefing Tuesday, top White House economic adviser Larry Kudlow insisted that, although GM's massive layoffs are "brutal", the job losses won't affect the economy more broadly.

Trump's aggressive trade policies have been aimed specifically at saving U.S. manufacturing jobs, including the renegotiation of the North American Free Trade Agreement which took aim at rules governing auto trade to favor the USA industry.

The company announced Monday it will halt production at one Canadian plant and four US factories, including the Detroit-Hamtramck Assembly plant that builds the plug-in hybrid electric Chevrolet Volt.

The president was referring to the Lordstown assembly plant in Warren, Ohio, one of the four facilities that GM plans to close in the U.S., along with two others in MI and one in Maryland. The company plans to layoff thousands of salaried workers in January. The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.

GM Company Job Cuts
GM slashing 15% of its salaried workers in North America

The move is expected to save GM a lot of money and to help make it competitive with companies like Amazon, Google, and Tesla, which aren't traditional automakers, but are dipping their toes into the auto-making industry with fully electric, low-cost, and even self-driving options for consumers.

GM, which employs around 180,000 staff, yesterday said it would slash 8,000 salaried jobs and another 6,000 part-time ones. Oshawa assembly plant in Oshawa, Ontario, Canada, on Monday, Nov. 26, 2018.

Barra did not link Monday's cuts to tariff pressures, but said trade costs are among the "headwinds" GM faces as it deals with broader technology change and market shifts.

The company also said it will stop operating two additional factories outside North America by the end of next year, in addition to a previously announced plant closure in Gunsan, South Korea.

GM's announcement has been met with wide-ranging criticism, led by USA 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. Analysts were generally upbeat about the news.

The president also threated the company in the continuation of his tweet.

In an investor call, Barra said some GM cars would no longer be available in North America, including the Chevrolet Cruze.

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