Trump warns GM could lose subsidies over layoffs

Andrew Cummings
November 28, 2018

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.

And, referring to the 2008 federal bailout of the auto industry, Trump angrily continued that "the USA saved General Motors, and this is the THANKS we get!"

As part of the restructuring plan, General Motors also said it will be doubling resources allocated to electric and autonomous vehicle programs in the next two years.

Rivals Ford Motor Co and Fiat Chrysler Automobiles NV have both curtailed U.S. auto production. General Motors announced Monday that it plans to lay off roughly 14,700 workers, a number which represents 15 percent of all its salaried employees.

"It seems like GM would prefer to build its electric cars in China rather than the United States".

Earlier, White House economic adviser Larry Kudlow on Tuesday indicated that Trump may announce other ramifications for GM.

The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees.

"Most of the one-shift plants are sedan plants", Dziczek said.

GM's chief executive officer is far from alone in wanting to build vehicles close to where they're sold to reduce logistical costs.

Trump, who promised repeatedly during his 2016 election campaign to revitalise job creation in the USA industrial heartland and promote domestic automaking, only mentioned the closure of the plant in OH, one of the key states on the U.S. electoral map and one that helped ensure his victory in 2016.

"Today our generation is facing a new Black Monday in the Mahoning Valley", Congressman Ryan said, "GM's announcement is devastating for the men and women working at Lordstown and everyone here in the Mahoning Valley".

As part of the restructuring, it will halt production at four factories in the U.S. and one in Canada, as it phases out certain models of slower-selling cars.

GM said Monday it is closing the plants, in part, due to low demand for certain vehicle models, including the electric Chevrolet Volt. The Chevy Volt plug-in hybrid will also be dropped along with the Chevy Cruze compact, which will be made in Mexico for other markets. The company estimates that the cuts will save it $6 billion by the end of 2020.

"It's very understandable, given all the hype associated with the trade agreement, and, you might say, the troubled relationship between your prime minister and our president, that it's some sort of reaction to the tariffs on steel and aluminum", said MI business professor Marick Masters.

The president's remarks follow GM's announcement on Monday about closing assembly plants in Detroit-Hamtramck and Lordstown, Ohio, along with transmission plants in Warren and the Baltimore area.

Work on six-speed transmissions made at the Warren, Michigan, transmission plant would stop August 1, while the Baltimore transmission plant would stop production April 1, GM said.

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