Published: Sat, December 01, 2018
Finance | By Kristine Clayton

Trump warns GM could lose subsidies over layoffs

Trump warns GM could lose subsidies over layoffs

The moves come as President Donald Trump puts pressure on the automaker by threatening to cut subsidies after the announcement Monday the company is cutting 14,700 jobs across the board and "unallocating" the Lordstown plant, as well as two other plants in MI and Ontario.

Trump tweeted his warning Tuesday, a day after GM announced it would shutter five plants and slash 14,000 jobs in North America. Sherrod Brown hold at least one common goal: getting General Motors (GM) to abandon its plan to lay off workers at an OH plant.

The biggest blow to Trump's boast his trade war will boost job growth came a few days ago when General Motors Company, the country's largest carmaker, said it will fire some 15,000 employees, partly due to more expensive steel and aluminum. "We are going to be looking at certain subsidies regarding electric cars and others and whether they should apply or not".

White House press secretary Sarah Huckabee Sanders said she did not have any additional information on the President's threat.

GM's restructuring comes less than two years after Trump praised the company for promising to invest $1 billion in its US operations.

"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland". The US saved General Motors, and this is the THANKS we get!

BMW South Carolina Factory
Trump threatens General Motors after announced closures in Midwest

GM employs 5,600 people in Mexico to make the Chevy Cruze hatchback - basically the same auto GM is taking away from Lordstown. But GM is on the cusp of reaching its subsidy limit.

Meanwhile, Mahoning County Democratic Party Chairman David Betras said: "I'm upset that we bailed GM out, gave them tax breaks and they stuck it to the workers". Workers also will be added at an SUV factory in Arlington, Texas.

U.S. Steel earlier this year announced plans to restart its Granite City blast furnace. GM did receive government bailout funds after the financial crisis, as did many other companies, but it repaid its U.S. loans - $6.7 billion - in 2010.

Keeping open a factory slated to close is not without precedent at GM, and Lordstown has been near death before and managed to survive. "Today, GM is continuing to take proactive steps to improve overall business performance, including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce".

Senate Democratic Leader Charles Schumer on Tuesday criticized Trump for "overpromising" as a candidate about protecting against plant closures if he was elected.

The restructuring reflects changing North American auto markets as manufacturers continue to shift away from cars towards SUVs and trucks. Trump has also threatened to take action against Inc, saying repeatedly in April, without providing evidence, that the online retailer was not paying the U.S. Postal Service a fair rate and saying that he would look at policies to address what he said were Amazon's unfair business advantages. Those tariffs are set to rise from 10% to 25% at the beginning of next year, putting yet another price hike on automakers' plates.

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