Trump threatens to cut General Motors subsidies as carmaker axes jobs

General Motors To Close Ohio Plant, Thousands Affected

In this July 27, 2011, file photo, assembly worker Julaynne Trusel works on a Chevrolet Volt at the General Motors Hamtramck Assembly plant in Hamtramck, Mich. GM announced Monday, Nov. 26, 2018, that it will lay off thousands of factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric vehicles.

During its third-quarter earnings report last month, General Motors said it had benefited over $150 million in tax savings so far in 2018 from the GOP tax reform legislation passed previous year.

The White House is threatening to curtail federal subsidies for electric cars in response to General Motors' decision to shut down auto production at plants in OH and MI.

The closures also drew sharp criticism from the U.S. and Canadian labour union representing GM workers, which accused the company of shifting production overseas at the expense of North American workers.

GM's stock rose 5.5 percent after this announcement.

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

In addition, GM will close two USA propulsion plants - which produce batteries and transmissions - in Baltimore, Maryland and Warren, Michigan, as well two unidentified plants outside of North America.

Those five plants now build cars that won't be sold in the USA after 2019, so they could close or get different vehicles to build. Also at risk are two transmission plants, one outside Detroit and another in Baltimore.

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

The president said that he was "very tough" with GM CEO Mary Barra when speaking with her after the announcement.

GM said Monday it is closing the plants, in part, due to low demand for certain vehicle models, including the electric Chevrolet Volt.

The plant in Lordstown, Ohio, that makes the Chevrolet Cruze compact auto is on the possible closure list. Barra said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust. He did not specify how much GM receives in federal subsidies.

While industry-wide passenger auto sales were down 13.2 percent through the first nine months of the year, pickup truck and SUV sales rose 8.3 percent.

Over the last two years, GM has been removing shifts from the Lordstown plant, causing approximately 3,000 workers to lose their jobs.

It's also a reason why the company is unlikely to take Trump's advice, offered Monday afternoon, to replace production of the Cruze with something else in Ohio. She also suggested that tariffs Trump imposed on imported aluminum and steel have hurt the company.

"Representative Holmes said the State Government reached out to GM about what they can do to help them bring a new vehicle to Lordstown, and will continue talks for a new product line to come to Lordstown".

The likely shutdowns have already opened up GM to political pushback, with Canada's Prime Minister Justin Trudeau tweeting that he has expressed "deep disappointment" with Barra directly. However, after an automaker sells 200,000 electric vehicles, that manufacturer gets phased out of the program over the course of about a year.

"For decades, workers in the Mahoning Valley have made a commitment to GM, and today GM let Northeast Ohio down", said Sen.

Related news:

Hot News

isis-killer-beheading-video-story-top Powerful winter storm slams Midwest, impacts millions of travelers
Nov 27, 2018 - 09:03
The region could see whiteouts and slick roads throughout Sunday, making travel hard if not impossible at times, Brink said. Temps in the mid 30s falling to the low 30s with winds NNW 10-20 miles per hour gusting to 30 miles per hour at times.

isis-killer-beheading-video-story-top Sonia Secures Silver After Mary Kom's Historic Win
Nov 27, 2018 - 07:46
In the boxer's autobiography "Unbreakable", she was quoted, "For a large part of my career, I had no sponsors". Kom sealed a place in the championship clash by beating North Korean Kim Hyang Mi 5:0 (unanimous decision).

isis-killer-beheading-video-story-top Mexico plans to deport migrants who tried to breach U.S. border
Nov 27, 2018 - 07:41
The breakoff group from the migrant caravan were met and stopped by Mexican police; Jonathan Hunt reports from Los Angeles. President Donald Trump took to Twitter Sunday to express his displeasure with the caravans in Mexico.

isis-killer-beheading-video-story-top India bus crash: Horror as 25 schoolchildren killed in canal plunge
Nov 25, 2018 - 19:33
Karnataka CM Kumaraswamy at the accident spot. "May God give them strength in this hour of sadness", he said in a tweet. Manjunath, a resident, said that they alerted the local authorities who stopped the water into the canal.

isis-killer-beheading-video-story-top Nissan CEO tells staff feels 'dismay' at Ghosn scandal
Nov 25, 2018 - 19:16
The Japanese car-maker says Ghosn under-reported his salary and used company assets for personal use. Ghosn and Kelly have not commented on the accusations and Reuters has not been able to reach them.

isis-killer-beheading-video-story-top Justin & Hailey Bieber Celebrate First Thanksgiving Together!
Nov 25, 2018 - 19:16
It also came about two months after Justin and Hailey tied-the-knot in a secret ceremony at a NY courthouse in September. Things seem to be going swimmingly with the pair as Justin's mother seemingly more than approves of new daughter in-law.

isis-killer-beheading-video-story-top Hamilton ends F1 season with a win in Abu Dhabi
Nov 25, 2018 - 19:13
Max Verstappen and Esteban Ocon will be thrown together in Thursday's intriguing pre-race press conference for the Abu Dhabi race. Belgian Stoffel Vandoorne also made his debut in 2016 when Alonso was injured in Australia and ruled out of race two in Bahrain.

isis-killer-beheading-video-story-top Brexit timeline: European Union leaders APPROVE Brexit deal - what happens next?
Nov 25, 2018 - 18:46
In a bid to lighten the mood, Tusk tweeted to say he was taking inspiration from Queen for Sunday's proceedings. French President Emmanuel Macron said Britain's Brexit vote showed Europe needed reform.

isis-killer-beheading-video-story-top Four dead after gunmen attack Chinese consulate in Pakistan
Nov 25, 2018 - 18:31
The BLA is one of a number of separatist groups fighting for self-determination for Pakistan's western Balochistan province. Pakistan's foreign minister, Shah Mahmood Qureshi, said all 21 staff were safe and had been moved to a safer location.

isis-killer-beheading-video-story-top Unai Emery Reveals The One Thing Arsenal Lacked Under Arsene Wenger
Nov 25, 2018 - 16:17
Danny Welbeck picked up a serious injury in the last European contest and is out for a lengthy period of time. Laurent Koscielny is close to start with the group and start, little by little, taking minutes.

isis-killer-beheading-video-story-top River-Boca Copa Libertadores final postponed until Sunday
Nov 25, 2018 - 11:57
The second leg of the decider was rescheduled for Monday (AEDT) after Boca Juniors' bus came under attack outside El Monumental. Having originally been ruled out of the game due to his injuries, Perez made an incredible U-turn and started the game.

isis-killer-beheading-video-story-top Duke Basketball: Blue Devils suffer first loss in Maui Title Game
Nov 23, 2018 - 15:14
With the victory , Gonzaga runs its record to 6-0, whereas Duke drops to 5-1 on the season, this early out the gate. However, Gonzaga has controlled the pace from the onset and has given Duke its first real challenge of the season.

isis-killer-beheading-video-story-top India Furious With Pak; Officials Harassed, Kept Away From Sikh Pilgrims
Nov 23, 2018 - 14:39
When he returned to India, Sidhu said General Qamar Bajwa had told him Pakistan may open the corridor to Kartarpur. Commemorative coin and postage stamps will be released by the Government of India to mark this momentous occasion.

isis-killer-beheading-video-story-top Trump complains about migrants, courts, trade in Thanksgiving call to troops
Nov 23, 2018 - 14:20
Later, in comments to reporters, Trump said troops on the border were authorized to use lethal force if necessary. Earlier, Mr Trump told USA troops overseas that the country is doing exceptionally well on his watch.

isis-killer-beheading-video-story-top Your 7-Step Guide To Getting Deepika Padukone's Shimmery Wedding Makeup Look
Nov 23, 2018 - 12:01
It is being hosted at The Leela Palace, and will see a guest list comprising the Padukones' extended family and relatives. It will be followed by a star-studded reception at Grand Hyatt in Mumbai on November 28.