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November 28, 2018 09:37:29
US President Donald Trump says he is "very disappointed". General Motors (GM) is closing factories in the United States and has warned the White House "to remove all GM subsidies", including for its electric car program.
Key points:
- Trump's comments come in the aftermath of GM's announcement of plant closures and the removal of jobs
- He would feel betrayed by GM, that the government had tried to help
- GM's Restructuring Reflects More and More Manufacturers Move to SUVs and Trucks
Trump shared his comments on Twitter a day after GM announced the closure of five auto plants and the elimination of 14,000 jobs in North America. Much of the job cuts would come from the Midwest, where the president had promised a renaissance in manufacturing.
His tweets spoke of his disappointment with Mary Barra, CEO of GM, and also discussed the government's rescue of the US auto industry in 2008.
Trump's inflammatory tweets came shortly after Larry Kudlow, director of the National Economic Council, said the White House's reaction was "a huge amount of disappointment, even anger."
Trump feels "betrayed" by GM
Mr. Kudlow, who met with Ms. Barra on Monday, said Mr. Trump had felt betrayed by GM, which the government had been trying to help.
"Look, we have this deal, we have worked with you all the way through the process, we have done something else with mileage standards, for example, and other related regulations," said Kudlow.
"We did this to help you and I think his disappointment is, it seems that they've been a little bit rotated [their] back on him. "
A reprimand of the White House against GM would face a long-standing Republican opposition to choose the winners in the market. It is not clear when and how action can be taken.
White House press secretary Sarah Huckabee Sanders said she did not have any additional information on the threat posed by the president.
Buyers of electric vehicles manufactured by GM and other automakers benefit from federal tax credits amounting to $ 7,500, which helps to reduce the price, which encourages them to use more zero emission vehicles.
GM vehicles include the battery-powered Chevrolet Bolt, capable of traveling 383 kilometers on a single charge.
The company has focused much of its future business plan on switching from consumers to battery-powered vehicles, promising to roll out 20 new vehicles worldwide by 2023.
GM has announced the removal of six models of gasoline-powered cars as part of a plan to close factories and cut costs in order to devote more money to development. of electric and autonomous vehicles.
The reductions could account for up to 8% of GM's 180,000 employees worldwide.
GM closed its Australian manufacturing plant in October 2017, closing its Adelaide plant and putting 944 people out of work.
US manufacturers turn to SUVs and trucks
The restructuring reflects the evolution of the North American automotive markets as builders continue to move from cars to SUVs and trucks.
In October, nearly 65% of new vehicles sold in the United States were trucks or SUVs. This figure was about 50% five years ago.
At a rally near the GM factory in Lordstown, Ohio, last summer, Mr. Trump told people not to sell their homes because jobs in the manufacturing sector "come back".
The layoffs occur in the context of a trade war between the United States, China and Europe that will likely result in higher prices for vehicles imported and exported from the United States.
Ms. Barra stated that the company was facing pricing issues but that she did not directly badociate the layoffs with these positions.
AP
Topics:
business-economics-and-finance
industry,
manufacturing,
automotive,
donald-trump,
United States
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