Trump tests presidential boundaries by threatening General Motors

US President Donald Trump has tested the limits of his presidential authority and political power by threatening to cut all federal subsidies to General Motors because of massive cuts planned in the United States.

Today, Trump has unloaded on Twitter, a day after GM 's announcement to close five factories and cut 14,000 jobs in North America. Much of the job cuts would affect the Midwest, a politically crucial region where the president had promised a renaissance in the manufacturing sector.

This was the latest example of the president's desire to try to interfere in the affairs of private companies and threaten the use of government power to try to force their business decisions.

"Very disappointed with General Motors and its General Manager, Mary Barra, having closed factories in Ohio, Michigan and Maryland, nothing is closed in Mexico and China," Trump tweeted. "The United States has saved General Motors, and that's the THANK YOU we have!"

He added that his administration "planned to remove all GM subsidies, including for electric cars".

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Trump's tweets were published shortly after National Economic Council director Larry Kudlow said the White House's reaction to the automaker's announcement was "a huge amount of disappointment, or even to overflow with anger. " Kudlow, who met with Barra on Monday, said Trump had felt betrayed by GM.

"Look, we have gotten this deal, we have been working with you throughout the process, we have done other things with mileage standards, for example, and other related regulations," he said. Kudlow, referring to the trade recently negotiated between the United States, Mexico and Canada. agreement. "We did this to help you and I think his disappointment is that it seems like they've somehow turned their backs on him."

The White House's reprimand seems to contradict Republicans' longstanding opposition to picking winners and losers in the market. A day earlier, Trump had launched a vague threat to GM to preserve a key plant in the state-owned Ohio, where the company had announced the closure of its plant in Lordstown.

"It's Ohio, and you'd better come back soon," he said.

It is unclear what actions against GM could be taken, or when, and whether the president has the power to act without congressional approval.

Buyers of electric vehicles manufactured by GM and other automakers benefit from a federal tax credit of up to $ 7,500, which helps to reduce the price, which encourages them to use more zero-emission vehicles on the roads. But GM is about to reach its grant limit.

White House press secretary Sarah Huckabee Sanders said she did not have any additional information on the threat posed by the president.

Trump has long promised to send jobs back to the manufacturing sector in the United States and especially in the Midwest. Last summer, at a rally near the GM plant in Lordstown, Mr. Trump asked people not to sell their homes because jobs "come back".

In a statement released today, GM attempted to appease the Trump administration by justifying the announced decisions. "We appreciate the steps this administration has taken on behalf of the industry to improve the overall competitiveness of the US manufacturing sector," the statement said.

Many workers who will lose their jobs if factories close their doors could be transferred to another GM plant where production will increase, said spokesman Patrick Morrissey.

For example, GM plans to add hundreds of workers to its pickup plant in Flint, Michigan, Morrissey said. Workers will also be added to an SUV plant in Arlington, Texas.

But these expansions are not enough to accommodate some 3,300 American factory workers who risk losing their jobs.

GM said it has invested more than $ 22 billion in US operations since 2009, when it had ceased to be protected by bankruptcy.

Trump has made direct negotiation with business leaders a centerpiece of his administration, including discussions with CEOs of defense contractors on lowering prices for new systems, including the upcoming replacement from the plane that serves Air Force One. He has never hesitated to express his frustration with their decisions.

But Trump's transaction image is far from flawless. Three weeks after his election, Trump traveled to Indianapolis to announce a tax incentive agreement partially canceling the closure of a Carrier plant, which was to close, removing approximately 1,400 production jobs.

Trump frequently criticized closure plans during the 2016 campaign and promised to prevent similar incidents. As part of this tax incentive agreement, Carrier is committed to maintaining nearly 1,100 jobs in Indianapolis, including some 800 jobs in furnace production that it planned to cut through with outsourcing. But about 550 jobs were again removed at the factory.

GM's attempt to close factories still needs to be negotiated with the United Auto Workers union, which promised to fight them legally and through collective bargaining.

The plant announcements were probably GM's first offer in contract negotiations with the union starting next year, said Kristen Dziczek, vice president of labor relations and industry at the Center for Automotive Research, a sector think tank in Ann Arbor, Michigan. Factories whose closure is expected could get new products in exchange for items that society expects of the union, she said.

Keeping a plant open for closure is not unprecedented for GM. In 2009, GM announced plans to close a huge assembly plant in Orion Township, Michigan, north of Detroit.

But he then negotiated union concessions and reopened the plant to build the Chevrolet Sonic subcompact car. The factory is still in business and is now building the Sonic and Bolt electric cars.

The reductions could account for up to 8% of GM's 180,000 employees worldwide.

The restructuring reflects the evolution of North American automotive markets, as automakers 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.

Jerry Dias, president of the Canadian union UNIFOR, said Tuesday that GM's CEO had insulted the president of the United States and the prime minister of Canada.

"If you are going to have a business that will show you his major, then I think our government should also show them our major," said Dias.

Lemire reported from New York. Associated Press editors Tom Krisher in Detroit, Rob Gillies in Toronto and Jill Colvin in Washington contributed to the report.