President Trump lambasted General Motors in a tweet on Tuesday, just one day after the auto manufacturer announced it was cutting 15 percent of its North American workforce and halting production at several plants. Shares slipped over 2 percent following the tweet.
|GM||GENERAL MOTORS COMPANY||36.69||-0.96||-2.55%|
“Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland,” he wrote. “Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get!”
….for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) – don’t think that bet is going to pay off. I am here to protect America’s Workers!
— Donald J. Trump (@realDonaldTrump) November 27, 2018
The closures of five GM facilities in Ohio, Michigan, Maryland and Ontario came as the largest American auto manufacturer looks to cut costs amid restructuring. It could affect up to 14,000 employees. GM will also cease production of several car models, including the Chevrolet Cruze and the Buick LaCrosse.
While talking to reporters, Barra said GM is making the cuts to “get in front of it while the company is strong and while the economy is strong.” She also suggested that tariffs Trump imposed on imported aluminum and steel have hurt the company.
GM shares rose nearly 5 percent on the announcement.
Barra met with White House economic adviser Larry Kudlow after the announcement.
But Trump warned his administration is now considering cutting all subsidies for GM, including for electric vehicles. The government hands out federal tax credits worth $7,500 to customers who buy electric vehicles.
“General Motors made a big China bet years ago when they built plants there (and in Mexico) – don’t think that bet is going to pay off,” he added. “I am here to protect America’s Workers!”