Trump threatens to slash GM’s subsidies after the automaker announces layoffs, factory closures

On Tuesday, the president of the United States, Donald Trump threatened General Motors of cutting down the subsidies.

This action came in the wake of the announcement made by the company that it would now be shutting down factories and laying off.

In a tweet on Tuesday, the president expressed his feelings stating that he was very disappointed with the General Motors along with the CEO of the company, Mary Barra because of their decision of closing the plants in Ohio, Maryland and Michigan.

Source: phnompenhpost

He further added that there was no closure in Mexico and China and that the United States saved the General Motors and in return the thanks which company gives to the country is by closing the factories there.

He also said that the administration will now be cutting the subsidies for the General electric which will include that for the electric cars.

On Monday, an announcement was made by the General Motors that in 2019 the company will stop manufacturing vehicles at its three factories in North America.

According to the General Motors, the three factories which will be de-allocated include the Oshawa Assembly which is located in Oshawa Ontario, Canada along with the Detroit-Assembly located Detroit and the Lordstown Assembly of the Warren all of which are located in Ohio.

Source: abcnews

The de-allocation will take place by the end of 2019. This is a part of reorganization the manufacturing capacity of the company in order to be able to focus on the electric as well as the self driving vehicles.

The announcement by the company was followed up by the outrages by both the President as well as the law-makers of both the parties.

On Tuesday, in an interview with the Wall Street Journal, the President seemed to be threatening the company stating that the company better opens a new plant in Ohio shortly.

Source: BusinessInsider, EconomicTimes

Leave a Reply

Your email address will not be published. Required fields are marked *

Written by Ketakee Srivastava

I am an amateur content writer, who is currently pursuing a Masters in Finance from ICFAI Business School. In this highly volatile Business Market, I find no better way to keep myself updated than to write about it and reflect my own thoughts as words.

XRP nears longest stretch as world’s second-largest cryptocurrency

U.S. third-quarter growth unrevised, headwinds increasing