Business

Donald Trump Threatens To Cease Federal Subsidies To General Motors

The threat comes GM announced closure of plants in Michigan, Ohio, and Maryland

The United States President Donald Trump has threatened to cut all federal subsidies provided to General Motors for making electric cars after the car making company announced its plans to close factories in Michigan, Ohio, and Maryland, resulting in the elimination of thousands of jobs.

The threat comes after GM announced the closing of plants in Michigan, Ohio, Maryland, and Canada, and slashing 15 percent of its salaried workforce as part of its $6 billion cost-cutting plan on Monday, reported CNBC.

Trump took to Twitter to address the issue. He noted that he is very disappointed with General Motors and the company’s CEO, Mary Barra, for their decision to close plants in the US and not in Mexico or China.

“Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan, and Maryland. Nothing being closed in Mexico & China,” Trump tweeted.

The President cited the U.S. bailout of major automakers after the 2008 financial crisis.

“The U.S. saved General Motors, and this is the THANKS we get!” he tweeted adding “We are now looking at cutting all @GM subsidies, including … for electric cars.”

He also suggested he would take the necessary steps required to protect the interest of workers impacted by the closure.

“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!” the tweet read.

When White House press secretary Sarah Huckabee Sanders was asked if she had any infomrtaion related to the timeline for pulling subsidies, she said she had no additional information on the president’s threat.

In response to the threat, GM issued a statement on Tuesday noting that the company it is committed to maintaining a strong manufacturing presence in the U.S. and also offered to shift many of the U.S. workers impacted by plant closures to other GM plants.

Caroline Finnegan

A professionnal journalist for the past ten years, I cover global news and economic affairs for The Chief Observer.

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