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Trump approves GM's plans to close four US plants: threatening to cancel all subsidies

Trump once again expressed dissatisfaction with GM's closure of four US factories.

On November 27th, US local time, US President Trump issued a tweet saying that he was very disappointed with General Motors and company CEO Mary Barra, who closed factories in Ohio, Michigan and Maryland. Rather than closing the Mexican and Chinese factories.

"The United States saved GM, but that's what we got! We are now considering canceling all GM subsidies, including... Trump said.

Trump then sent another tweet, followed by the above: "...electric vehicle subsidies. GM put a bet on Chinese and Mexican factories a few years ago, (I) don't think these bets Note will pay off. I am here to protect American workers!

White House press spokeswoman Sarah Huckabee Sanders said she did not know what Trump called a detailed timetable for cutting subsidies. Currently in the United States, electric car buyers can enjoy a tax credit of up to $7,500.

Affected by this news, GM's share price fell more than 3%. According to CNBC, GM said in a statement on Tuesday night that it will work to maintain strong manufacturing performance in the United States, and that American workers affected by (factory closure) will have the opportunity to transfer to other general-purpose plants.

We are very grateful to the government for its actions to strengthen the competitiveness of the US manufacturing industry. GM said it did not respond directly to Trump's claim to lift subsidies.

The previous day, GM released an article on GM's accelerated change on its official website, announcing the largest restructuring plan in North America since its bankruptcy 10 years ago.

Specific measures include 15% layoffs by the end of next year, 14700 layoffs, and a 25% reduction in executives.

GM will also shut down seven production sites worldwide, with affected production sites including Oshawa, Ontario, Canada, Detroit and Warren, Ohio, USA, and zero in Maryland and Michigan, USA. In the component factory, models such as the Chevrolet Cruze, the Chevrolet Volt and the Chevrolet IMPALA will be discontinued in North America. GM's production plants in China were not affected by the layoffs.

With the above measures to save costs and optimize capital expenditures, GM expects to save $6 billion annually by the end of 2020.

According to Reuters, the reason for GM's change is that the traditional gasoline-powered sedan market is stagnant, and GM intends to shift more investment to electric and autonomous vehicles. General Motors chairman and CEO Bora said that the scale of production capacity is being adjusted according to market reality.

After the release of this program, GM's share price once jumped 7.6% to $38.66.

But Trump and the automotive industry workers expressed strong dissatisfaction with this program. Since taking office, US President Trump has vigorously promoted the protection of US employment opportunities and rebuilt the US manufacturing base. His achievements include: In January, Toyota Motor and Mazda announced a joint venture of US$1.6 billion in Alabama, USA. New car manufacturing plant; in June, Foxconn's new plant in Wisconsin, USA, and Trump also attended the ceremony as the chairman of Hon Hai Group, Guo Taiming. The decision of General Motors to close four US factories made Trump furious.

On November 26, US President Trump told the media before leaving the White House to go to Mississippi to participate in the Republican Senate candidate campaign rally, he was not happy with GM's news, and the country has done a lot for GM. On Sunday night, I spoke with General Motors CEO Mary Bola, suggesting to close GM's car production plants in other countries and transfer the factory to Ohio.

Alone, Reuters reported that Detroit Mayor Mike Duggan said in a statement that the news was disturbing and said that Detroit's economic development team and UAW are working together to find a solution for both GM and employees. s solution. Canadian Prime Minister Trudeau said that he and Bora had spoken and expressed deep disappointment.

GM's largest employee union, the American Automobile Workers' Federation (UAW), also said it would fight the plan. UAW General Motors official Terry Dittes said in a statement that it would be a ruthless decision to cut back on operations in the US after automakers first received federal bailout funds for 10 years.

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