[ad_1]
WASHINGTON (Reuters) – US President Donald Trump said the White House plans to cut subsidies to General Motors Co after the biggest US automaker announced it would stop production five plants in North America and lay off thousands of workers.
"The United States has saved General Motors and we are delighted that we are now considering removing all @GM subsidies, including for electric cars," Trump told Twitter on Tuesday.
GM electric vehicles are eligible for a US $ 7,500 (US $ 10,330) tax credit under federal law, but it is unclear how the administration could restrict these credits or if the President was considering other grants. GM's shares fell on Trump's tweets and recently dropped by 2.4%.
GM declined to comment immediately.
Trump criticized GM on Twitter for failing to shut down its facilities in Mexico or China.
White House spokeswoman Sarah Sanders told reporters on Tuesday that the president was reviewing the options.
"The president wants American companies to build cars here in America and not abroad and he hopes GM will continue to do that here," she said.
The company announced Monday that it would stop the production of a Canadian plant and four US plants, including the Detroit-Hamtramck assembly plant, which is building the Chevrolet Hybrid Electric Volt rechargeable. GM ends production of six vehicles, including the Volt, which cuts more than 6,500 factory jobs.
GM confirmed Tuesday that 2,250 employees had applied for a buyout. The company announced Monday that it plans to cut about 8,000 of its 54,000 employees in North America. The company plans to lay off thousands of employees in January.
Mr Trump told GM Monday that it was "better" to find a new product for the Lordstown Assembly plant in Ohio that will stop production in March. GM said the decline in demand for small cars had largely motivated reductions.
[ad_2]
Source link
