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U.S. News November 27, 2018 2 mins read

Trump Threatens to Cut Federal Subsidies for GM in Retaliation for Job Cuts

U.S. News ı By Marivic Cabural Summers

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Trump talks about trade deal with China

President Donald Trump threatened to cut federal subsidies for General Motors (GM) in retaliation to the automaker’s decision to shut down factories and lay off thousands of workers.

In a pair of tweets on Tuesday, Trump reiterated his disappointment with GM and its CEO Mary Barra and stated that his administration is considering “cutting all GM subsidies.”

On Monday, GM announced that it will close its assembly plants in Detroit, Ohio, and Canada. It will also shut down its propulsion plants in Maryland and Michigan. The closures will be happen in 2019.

In addition, the automaker plans to reduce its workforce by 15 percent or more than 14,000 white-collar and factory workers.

In an interview with the Wall Street Journal on Monday, Trump said he spoke with Barra on Sunday and warned that the company is “playing around with the wrong person.”

The president also demanded that the automaker should stop manufacturing cars in China and “better damn well open a new plant” in Ohio “very quickly.” Trump said “I love Ohio.”

Separately, Trump told White House reporters that he is “not happy” with GM’s decision. He added, “I have no doubt that in a not too distant future they’ll put something else. They better put something else in.”

GM’s response to Trump’s threats

In response to the president’s escalating threats, GM tweeted, “We are committed to maintaining a strong manufacturing presence in the U.S. Many of the U.S. workers impacted by our actions will have the opportunity to support new growing areas.”

“That includes adding technical and engineering jobs that support the future mobility. We’re on a journey to create a better world today, and for generations to come.”

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Marivic Cabural Summers

Marivic has been a freelance writer/journalist for nearly 20 years. She strictly adheres to the ethical standards in journalism. For her, integrity is everything. Readers deserve to know that real story. She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. Marivic holds a BA in Mass Communications.

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