General Motors Is Axing Five Factories And Six Models Permanently

Signs hang in windows at the UAW Local 1112 union hall Tuesday in Lordstown Ohio. Even though unemployment is low the economy is growing and U.S. auto sales are near historic highs GM is cutting thousands of jobs in a major restructuring aimed at gener

President Donald Trump said the White House was looking at cutting federal subsidies for General Motors after the largest USA automaker said it would halt production at five plants in North America and lay off thousands of workers.

General Motors Chairman and CEO Mary Barra speaks at GM's press conference at the North American International Auto Show in Detroit, Jan. 16, 2018. I want workers to do well and worker wages to do well, and they are.

GM's decision to shutter factories and fire workers undermines Mr. Trump's campaign promises to keep manufacturing jobs in the U.S. The Cruze GM plant just outside Youngstown, Ohio, is in a Democratic and labor stronghold, where Mr. Trump won a surprising number of voters two years ago by reaching out to what he called America's "forgotten men and women". Investors cheered the news, sending GM shares higher, but in Washington there was bipartisan anger that the company is trimming its workforce in the midst of an economic expansion. "That's OH, and you better get back in there soon'". She also suggested that tariffs Trump imposed on imported aluminum and steel have hurt the company.

GM's stock rose almost 5% on the news Monday, then fell 2.5% Tuesday as President Trump threatened to cut federal subsidies to GM because of the layoffs. Yesterday's announcements support our ability to invest for future growth and position the company for long-term success and maintain and grow American jobs.

GM on Monday announced it would cut six gas-powered auto models as part of a plan to close factories and cut costs so it can spend more on electric and autonomous vehicle development.

For Mr Trump in particular, the cuts are a blow, as he has made rebuilding the U.S. auto industry one of his administration's priorities.

GM did not immediately comment on Trump's remarks, but the company noted it has other facilities in OH including a transmission plant in Toledo and metal centre in Parma.

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The union went on to note that products - such as the Chevrolet Blazer and Buick Envision - which could have been built in the affected plants are instead produced in Mexico and China. "We are going to be looking at certain subsidies regarding electric cars and others and whether they should apply or not".

White House spokesman Sarah Sanders told reporters on Tuesday that the president is looking into options.

In a tweet about MI in August he said: "Lots of vehicle and other companies moving back!"

The government hands out federal tax credits worth $7,500 to customers who buy electric vehicles.

GM closed its Holden factory in South Australia in October 2017, ending more than a century of auto manufacturing on the continent.

All these actions are expected to increase GM's annual adjusted automotive free cash flow by $6 billion on a run-rate basis by year-end 2020, according to the company. The company, along with Tesla (TSLA), has lobbied USA lawmakers to lift the cap. Sen. Dean Heller, R-Nev., where Tesla operates a large battery factory. Dean Heller, Republican of Nevada, has proposed legislation that would lift the 200,000-unit limit and phase out the program for all manufacturers in 2022, Reuters reported last month.

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