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.
The cuts will "position the company for long-term success and maintain and grow American jobs", GM said, adding that many workers at impacted plants will be able to move to other GM factories. "And GM would not be closing their plants in Ohio, Michigan & Maryland". "We're going to fill up those factories or rip them down and build new ones", he said. USA consumers have responded by purchasing yet more SUVs and trucks, which accounted for about 65 percent of new-vehicle sales in September. "Nothing being closed in Mexico & China".
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. "I am here to protect America's Workers!" Questions remain, though, about whether Trump has the authority to act against the automaker without congressional approval.
The United States now imposes a 2.5 per cent import tariff on all overseas manufactured cars. GM sold almost 2.7 million vehicles in China through September, almost all built in China.
Economic advisor Larry Kudlow has told a press conference at White House that "the president said there is a good possibility that we can make a deal and he is open to it".
Rich Rankin, United Auto Workers Region 2-B director and representative for UAW workers in OH and in, said GM owes the workers for the bailout the company received during the 2008 financial collapse. It's only available to automakers that have sold fewer than 200,000 electric vehicles.
As Business Insider's Matthew DeBord pointed out, the threat to cut the EV credit is essentially meaningless to GM, since the credit already set to expire within the next two years. Tesla hit the cap in July. However, could GM have found a way to avoid this? Kudlow, who met with Barra on Monday, said Trump felt betrayed by GM. For instance, GM plans to add hundreds of workers at its pickup truck assembly plant in Flint, Michigan, Morrissey said.
Donald Trump won Trumbull County, which is home to the GM Lordstown plant. But companies are widely expected to pass along the cost of higher tariffs to American consumers.
And Ohio Democrat Sherrod Brown, who supports many of Trump's trade policies and has blocked Corker's efforts to impose congressional oversight of the tariffs, has said it would be "hard to argue that auto production is a national security issue".