Conflict over downsizing: Trump threatens GM to suspend subsidies

economy

Tuesday, November 27, 2018

General Motors plans to close up to five factories in the United States. That would affect 15,000 jobs. The drastic austerity plan calls Trump on the barricades. The US president wants to force the automaker to rethink by reduction threats.

Following the announced job cuts at the American manufacturer General Motors (GM), President Donald Trump threatened the company to end the subsidies. Trump wrote on Twitter that he was very disappointed with General Motors and the company's director, Mary Barra. Now, see if you can remove all GM subsidies, including those for electric cars, he added. "In Mexico and China, nothing is closed, the United States has saved General Motors, and it is the THANKS we receive!"

The automaker announced Monday a reduction in domestic production and therefore a dismissal of staff and the closure of some manufacturing facilities. The measure could reach 15,000 employees. The main reasons are weakening sales of small cars in the United States and rising material costs.

Marry Barra, CEO of the group, had justified the radical restructuring and savings plans by the "changing market conditions". In the future, GM will focus on producing the most popular SUVs and off-road trucks in the United States. The group also wants to promote the development of autonomous vehicles and electric cars. On the other hand, the company wants to reduce the production of small and medium clbadic cars.

Trump is an accomplice

For Trump, the planned layoffs are a big nuisance. He promised to help the American industry make a big comeback and create more jobs than ever before, before the US presidency. However, the trade disputes initiated under its "America First" policy have so far had considerable negative consequences for US automakers such as GM and Ford.

Currently, buyers of pure electric cars can deduct $ 7,500 (about 6,600 euros) from the tax. However, if the manufacturer has sold 200,000 pieces of a legitimate model, the subsidy expires. Tesla has already broken that mark and GM should soon follow. Both companies want to get an extension of the grants in Washington.

Source: n-tv.de