Trump threatens to cut off EV tax credits to GM over job losses

0
18


WASHINGTON — President Donald said the White House was looking at cutting federal subsidies for General Motors after the largest U.S. automaker said it would halt production at five plants in North America and lay off thousands of workers.

“The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @ subsidies, including … for electric cars,” Trump said on Twitter.

GM electric vehicles are eligible for a $7,500 credit under federal law, but it is not clear how the administration could restrict those , which are available to all automakers, from GM alone — or whether he had some other undefined subsidies in mind.

Also, GM is getting close to the point at which the tax credit starts to phase out. It’s expected to reach that point by the end of this year. The tax credit falls by half every six months after that.

GM shares fell on Trump’s tweets and were recently down 2.4 percent.

GM declined to immediately comment.

Trump criticized GM for not closing facilities in Mexico or China on Twitter.

White House spokesman Sarah Sanders told reporters on Tuesday that the president is looking into options.

“The president wants to see American companies build cars here in America not build them overseas, and he is hopeful that GM will continue to do that here,” she said.

The company announced Monday it will halt production at one Canadian plant and four U.S. factories, including the Detroit-Hamtramck Assembly plant that builds the plug-in hybrid electric Chevrolet Volt. GM is ending production of six vehicles, including the Volt, as it cuts more than 6,500 factory jobs.

GM confirmed on Tuesday that 2,250 salaried workers had applied for buyouts. The company said Monday it plans to about 8,000 of its 54,000 salaried workers in North America. The company plans to layoff thousands of salaried workers in January.

Trump told GM on Monday it had “better” find a new product for Lordstown Assembly plant in Ohio, where production of the Chevy Cruze will end in March. GM has said sagging demand for small cars largely prompted the cuts.

Reporting by David Shepardson and Roberta Rampton

Related Video:



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here