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CTVNews.ca staff with Richard Madan records
Posted on Tuesday November 27th, 2018 at 21:58 EST
Last updated on Tuesday, November 27, 2018 at 10:04 pm EST
US President Donald Trump has threatened to scrap a subsidy for General Motors' electric vehicles on Tuesday due to planned plant closures, but an industry expert said it would have little impact on the company.
The impending closures, which include four US plants and one in Oshawa, Ontario, are expected to create 14,000 US jobs and an additional 2,900 jobs in Canada.
Trump, who campaigned promising to bring back jobs in the manufacturing sector and won the leading states of Rust Belt in the 2016 presidential election, wrote on Twitter that "we are now considering removing all GM subsidies, including for electric cars".
Jeremy Acevedo, an automotive badyst at Edmunds in Santa Monica, Calif., Told CTV News that GM would hardly notice a reduction in the subsidy for electric vehicles.
"Maybe it's a threat, but not with a lot of punch behind it," he said.
The EV Grant is a $ 7,500 tax credit for consumers who purchase electric vehicles.
"Leasing is so popular and so popular here that GM and the dealer network have plenty of opportunities to absorb these tax credits and to badign a cheap lease to buyers" said Acevedo.
However, the credit – which affects the entire sector – disappears gradually after the sale by 200,000 electric vehicles of a company, and GM has only a few months to achieve this goal.
…. for electric cars. General Motors made a big bet in China a few years ago, when they built factories there (and in Mexico) – do not think this bet will be profitable. I am here to protect American workers!
– Donald J. Trump (@realDonaldTrump) November 27, 2018
"Reducing GM electric vehicle subsidies would not really matter," said Acevedo. "Really, they will fend for themselves. The sale of their electric vehicles and their vehicles plug-in has been extremely dynamic. They are therefore very close to the 200,000 mark.
Trump has spoken on Tuesday with Prime Minister Justin Trudeau about GM job losses. Both leaders expressed their disappointment.
GM has announced the closure of five plants in Oshawa, Detroit, Ohio, Maryland and Michigan. The company also announced plans to cease operations at three other plants outside North America by the end of 2019.
The reading of a call between Trump and Canada The Prime Minister Trudeau gives less details than the reading of the same call by the PMO #cdnpoli pic.twitter.com/TvSTWpRC4j
– Richard Madan (@RichardMadan) November 28, 2018
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