GM Cuts Jobs and Production, Canceling Some Car Models

GM Cuts Jobs and Production, Canceling Some Car Models

Trump said he wasn't impressed with GM officials' explanation that the company is closing the OH plant because of poor sales of the model it manufactures.

"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland", Trump wrote.

GM's shares fell more than two percent in response to the attacks, as CNBC reported.

President Donald Trump said the White House was looking at cutting federal subsidies for General Motors after the largest US automaker said it would halt production at five plants in North America and lay off thousands of workers. The company said this is part of a plan that restructures to cut costs and focus more on autonomous and electric vehicles. GM is also responding to a consumer shift away from sedans in favor of trucks and SUVs.

Barra met with White House economic adviser Larry Kudlow after the announcement. "That's one of the great things", he said. GM will discontinue the Cruze in the United States market by 2019.

U.S. Senator Rob Portman, a Republican from OH, said he's "deeply frustrated" with GM's decision to shut down a plant in Lordstown and is pressing Barra to come up with an alternative product for the factory.

GM did not respond to a request for comment.

"It seems like GM would prefer to build its electric cars in China rather than the United States".

The federal government offers tax credits of up to $7,500 to lower the up-front costs of plug-in electric vehicles.

The moves are meant to shift resources to investing in electric and autonomous vehicles and to prepare for a downturn in the auto market, the automaker said. It's expected to reach that point by the end of this year.

"The entire industry qualifies for this".

In GM's third-quarter earnings call with investors, CEO Barra said the decline in sales was not a direct result of tariffs.

Tesla (TSLA), the leading electric vehicle maker, already hit the 200,000 milestone earlier this year.

Between 2009 and 2014, the Energy Department also provided loans and grants toward the development of electric vehicles and energy saving technology. Three weeks after his election, Trump traveled to Indianapolis to announce a tax-incentive agreement partially reversing the closure of a Carrier factory, which was set to close, cutting about 1,400 production jobs. "I once again urged GM to make a commitment to bring a new product to the plant, especially since GM is proposing to build a number of new electric vehicles", Senator Portman said. "I urged GM to at least reallocate some of the production and employees to the Toledo GM plant", he said in the statement. "They may run way ahead of the pack and run off a cliff, because nobody can see the future that clearly, but they have defined it and they are preparing for it".

Kudlow argued the problems at GM are limited to the auto sector and not a reflection on the broader health of the economy.

Ontario Premier Doug Ford said he talked to the head of GM on Sunday and was told "the ship has already left the dock" when he asked if there was anything Ontario could do.

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