General Motors' announcement Monday that it would close five plants in the USA and Canada and lay off 14,000 workers provoked a storm of outrage from President Donald Trump in which he threatened to cut the company's subsidies.
"The reason that the small truck business in the U.S.is such a go to favorite is that, for many years, Tariffs of 25% have been put on small trucks coming into our country". "So I don't know exactly how they would do that". Trump has publicly threatened GM as he tries to follow through on campaign promises to boost American manufacturing - which he reiterated during a rally near the Lordstown facility past year. But the pace of job gains has slowed considerably since Trump took office, according to the Labor Department.
"Jerry Dias, head of Unifor which represents the 2,500 Canadian workers that will find themselves out of work at the end of 2019 when GM shutters its Oshawa plant, met earlier with Trudeau".
And on Tuesday, Trump threatened to cut government subsidies to the auto giant, which was saved by a taxpayer bailout in the wake of the 2008 financial meltdown. The legislation was expanded in 2007, allowing consumers who buy an electric vehicle to claim up to $7,500 in federal tax credits on their tax returns. He argued that a similar import tax on cars would have prevented GM's move to close plants in the US. Volkswagen's U.S. CEO says the company is looking for a site to build a factory to make electric vehicles. White House press secretary Sarah Huckabee Sanders said that she did not have any additional information on the president's threat. Moreover, altering the credit would require action by lawmakers. John Thune, R-S.C., told reporters.
Chris Krueger, a strategist at Cowen Washington Research Group, said GM's move made it more likely that Trump "doubles down with auto and auto parts tariffs".
"Government should stay out of the free market and let the market stay a free market", Wyndham said. "The U.S.A.is booming!"
As far as Trump's claim that automakers are pouring into the country, the only USA plant that has been announced during his administration so far has been one by Toyota-Mazda in Alabama. GM's transformation also includes adding technical and engineering jobs to support the future of mobility, such as new jobs in electrification and autonomous vehicles.
Currently, once a manufacturer sells 200,000 electric vehicles, the tax credit phases out starting in the following quarter. Heller lost his re-election bid this month to Democrat Jacky Rosen. GM sold almost 2.7 million vehicles in China through September, almost all built in China.
"There's a beacon of hope", said UAW Local 1112 President Dave Green.
Beyond the subsidies given to customers, GM has received about $333.5 million in federal spending in the past 12 months, according to a US government website that tracks federal expenditures.
Economists are also anxious about the broader consequences for what would be a major escalation in Trump's trade wars.
The wrath of the leaders of the United States and Canada dramatized the challenges GM and its Detroit rivals will face as they restructure to cope with the most dramatic technology and market shifts in decades.