Hundreds of GM workers gather in solemn prayer in Ohio
- Author: Wendy Palmer Dec 01, 2018,
Dec 01, 2018, 1:17
President Trump responded by threatening to cut subsidies to GM.
Trump's harsh words rattled investors, who bid down GM shares by 2.6 per cent on Tuesday after sending them up on Monday in response to the automaker's cost-cutting.
A day earlier, Trump issued a vague threat to GM to preserve a key plant in the presidential bellwether state of OH, where the company has marked its Lordstown plant for closure.
After the company announced it would close five factories, kill several underperforming models and lay off 15,000 workers, Trump threatened to end federal subsidies for the company, along with other unspecified punishments. In July 2017, speaking at a rally about 20 miles away in Youngstown (Ohio), Trump said he saw too many empty factories in the area and pledged to revive manufacturing there.
Numerous jobs would be eliminated in Midwestern U.S. states, a region where Trump has long promised a manufacturing rebirth. "We have talked for the past few years about an engine plant to support our North American production and sales and we are now again investigating this option". A day earlier, Trump issued a vague threat to GM warning it to preserve a key plant in the presidential bellwether state of OH, where the company has marked its Lordstown plant for closure.
We are now looking... Trump said Monday that he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent, and repeated his threat to slap tariffs on all remaining imports from China.
Through October, the US imported more than 13 percent less steel compared with a year ago, while Europe has imported more than 10 percent for a record high, according to the Wall Street Journal, citing the European Steel Association.
As news of General Motors' decision to cease production of the Lordstown-built Chevrolet Cruze and idle the Lordstown plant next year continued to ripple throughout the Mahoning Valley, some of the Valley's elected officials took the fight to save the plant to Washington, D.C.
"President Trump, I'll compare my record standing up for OH and American workers to yours any day".
It's unclear whether Trump has authority to revoke subsidies without action by Congress. GM sold almost 2.7 million vehicles in China through September, almost all built in China.
White House press secretary Sarah Huckabee Sanders did not elaborate as to what cuts could be enacted. The credit begins to phase out after an automaker sells 200,000 eligible vehicles, such as the Chevrolet Bolt electric auto. Tesla already hit that figure.
Trump has given direction toward a broader examination of ways for the federal government to block funds to GM, the person said Wednesday.
"We're dealing with a corporation that doesn't have any respect for Canadian and American workers, and I think we should treat them in the same vein", said Jerry Dias, national president of Unifor, which represents GM workers in Canada.
Trump has long promised to return manufacturing jobs to the United States and particularly the Midwest. Making vehicle imports 25% more expensive would be a huge price hike for consumers, who probably wouldn't pay the new tax.
Senate Democratic Leader Charles Schumer on Tuesday criticized Trump for "overpromising" as a candidate about protecting against plant closures if he was elected.