Trump warns GM could lose subsidies over layoffs

General Motors To Close Ohio Plant, Thousands Affected

General Motors To Close Ohio Plant, Thousands Affected

The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse. "And I said, because their Cruze vehicle isn't selling, OK?" Another two plants will close outside North America.

His tweets cited his disappointment with GM CEO Mary Barra and also referred to the 2008 government bailout of the U.S. auto industry. Barra said the company will double resources dedicated to electric and self-driving vehicles over the next two years.

The factory announcements likely represented GM's opening bid in contract talks with the union that start next year, said Kristen Dziczek, vice president of labor and industry with the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan.

Trump wrote that he was "Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland".

"There's great disappointment there", he said.

After the morning announcement, Barra was to head for Washington to speak with White House economic adviser Larry Kudlow in what was described as a previously scheduled meeting, according to a White House official who spoke on condition of anonymity because the official was not authorized to discuss the meeting publicly.

GM said the moves will save $6 billion in cash by the end of next year, including $4.5 billion in recurring annual cost reductions and a $1.5 billion reduction in capital spending.

Speaking to reporters Monday, Trump said that he was "not happy" about the decision. Tesla surpassed 200,000 cumulative EV sales in the US earlier this year, and Bloomberg NEF analysts project that GM will probably exceed that mark this quarter.

Sky Harbor flights canceled, delayed after wintry storm hits Midwest
Clair, Livingston and Oakland counties are under a Winter Weather Advisory until 3 p.m. today for 2-6 inches of snow possible. The storm also dumped wet snow on parts of Michigan's Lower Peninsula, creating treacherous driving conditions.

The company said the cuts - 2,500 jobs in Oshawa, GM's Canadian heartland, as well as 3,300 production workers in the US and 8,000 salaried staff - are part of a dramatic course correction aimed at better positioning GM for the dominance of electrified, interconnected and automated automobiles. The company has pinned much of its future business plan on consumers switching to battery-powered vehicles, promising to roll out 20 new ones globally by 2023. That figure was about 50 percent cars just five years ago.

She also noted that tariffs on imported aluminum and steel have hit the company, but she stopped short of saying they had anything to do with the restructuring.

Barra did not link Monday's cuts to tariff pressures, but said trade costs are among the "headwinds" GM has to face as it deals with broader technology change and market shifts.

The second-largest domestic automaker had already scrubbed plans for a second assembly line in Mexico previous year due to declining passenger auto sales.

Keeping open a plant slated for closure is not without precedent for GM.

The company also said it will reduce the size of its global workforce by 15%, including a 25% cut in white-collar staff. The factories slated for closure could get new products in exchange for items the company wants from the union, she said. Truck and SUV plants, on the other hand, operate almost around the clock on three shifts and are at 105 percent of capacity.

Rivals Ford and Fiat Chrysler have both curtailed USA vehicle production. And speeding its demise would hurt American vehicle buyers.

America's biggest auto maker said the move was in response to changing customer tastes, with SUVs and pick-up trucks favoured over sedans that once ruled the country's roads. In October, nearly 65 percent of new vehicles sold in the US were trucks or SUVs. By that schedule, GM would no longer qualify for the credit after the first quarter of 2020. As well as being roomier, the fuel economy on SUVs and crossovers has improved significantly.

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