Trump assails GM over plans to close U.S. facilities, threatens to cut subsidies

President Donald Trump railed against General Motors (GM) over the company’s recently announced plans to close facilities in the U.S. and threatened to slash subsidies including the federal tax credit for GM’s electric vehicles.

“Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland,” Trump said in a Twitter post. “Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get!”

General Motors on Monday announced plans to cut back production in several of its North American facilities in states including Ohio, Michigan and Maryland. GM also said it plans to reduce its salaried workforce by 15%, including one-quarter of company executives. The Detroit, Michigan-based automaker expects that the massive restructuring will save up to $6 billion a year by the end of 2020.

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.

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General Motors plants around the world
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General Motors plants around the world
The GM logo is seen at the General Motors Assembly Plant in Ramos Arizpe, in Coahuila state, Mexico November 25, 2017. REUTERS/Daniel Becerril
The employee parking lot of the General Motors Co (GM) CAMI assembly plant remains empty during a strike by the Unifor auto workers union in Ingersoll, Ontario, Canada October 13, 2017. REUTERS/Chris Helgren
Workers inspect Baojun E100 all-electric battery cars at a final assembly plant operated by General Motors Co and its local joint-venture partners in Liuzhou, Guangxi Zhuang Autonomous Region, China, December 27, 2017. Picture taken December 27, 2017. REUTERS/Aly Song
An employe of DHL company (yellow vest) works inside a Baojun car final assembly plant operated by General Motors Co. and its local joint-venture partners in Liuzhou, Guangxi Zhuang Autonomous Region, China, December 27, 2017. Picture taken December 27, 2017. REUTERS/Aly Song
A worker driving a GMC Terrain leaves the General Motors CAMI car assembly plant where the GMC Terrain and Chevrolet Equinox are built, in Ingersoll, Ontario, Canada, January 27, 2017. REUTERS/Geoff Robins
Workers assemble Chevy Bolt EV cars at the General Motors assembly plant in Orion Township, Michigan, U.S. November 4, 2016. REUTERS/Joe White
Employees inspect vehicle frames in the weld shop at the SAIC-GM-Wuling Automobile Co. Baojun Base plant, a joint venture between SAIC Motor Corp., General Motors Co. and Liuzhou Wuling Automobile Industry Co., in Liuzhou, Guangxi province, China, on Wednesday, May 23, 2018. GM and its partners sold 4 million vehicles in China in 2017, about 1 million more than the automaker sold in the U.S. Photographer: Qilai Shen/Bloomberg via Getty Images
An employee walks past vehicles in the general assembly shop at the SAIC-GM-Wuling Automobile Co. Baojun Base plant, a joint venture between SAIC Motor Corp., General Motors Co. and Liuzhou Wuling Automobile Industry Co., in Liuzhou, Guangxi province, China, on Wednesday, May 23, 2018. GM and its partners sold 4 million vehicles in China in 2017, about 1 million more than the automaker sold in the U.S. Photographer: Qilai Shen/Bloomberg via Getty Images
Robotic arms weld vehicle frames in the weld shop at the SAIC-GM-Wuling Automobile Co. Baojun Base plant, a joint venture between SAIC Motor Corp., General Motors Co. and Liuzhou Wuling Automobile Industry Co., in Liuzhou, Guangxi province, China, on Wednesday, May 23, 2018. GM and its partners sold 4 million vehicles in China in 2017, about 1 million more than the automaker sold in the U.S. Photographer: Qilai Shen/Bloomberg via Getty Images
A Chevrolet Sonic vehicle moves along the production line at the General Motors Co. Orion Assembly Plant in Orion Township, Michigan, U.S., on Tuesday, June 13, 2017. The largest U.S. automaker will expand its fleet of autonomous Chevrolet Bolts to 180 of the electric vehicles, Chief Executive Officer�Mary Barra�said Tuesday.�Photographer: Jeff Kowalsky/Bloomberg via Getty Images
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Trump said he is “looking at cutting all GM subsidies” following the announcements. Currently, consumers can take advantage of a $7,500 federal tax credit if they purchase an all-electric vehicle, which includes GM vehicles including the Chevrolet Bolt and Chevrolet Volt. The federal tax credits begin to phase out after a manufacturer sells 200,000 electric cars, a limit which GM and other automakers have been lobbying Congress to lift.

Trump’s latest comments follow a slew of public criticisms directed toward General Motors and its CEO Mary Barra. Trump, who made boosting American manufacturing a focal point of his 2016 presidential campaign, has previously attacked a variety of U.S. companies for shuttering or moving domestic production.

Shares of General Motors extended declines following Trump’s Twitter posts, falling 2.35% to $36.76 each as of 2:14 p.m. ET.

 

 

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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