Trump looks to cut GM subsidies

Trump looks to cut GM subsidies

The German automaker said if it goes ahead with plans for a U.S. engine plant, it is because it needs to supply engines to its North American assembly plants.

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

While it's true that GM, like other USA automakers, has received substantial federal assistance over the years - including a almost $50 billion bailout in 2009 - experts cast doubt on the idea that Trump could unwind federal aid for the company by executive fiat.

President Trump said he is looking at cutting GM subsidies after hearing the announcement.

Lighthizer said, "At the president's direction, I will examine all available tools to equalize the tariffs applied to automobile".

Earlier this week, GM announced GM plans to close up to five plants by the end of the year.

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. "So we're comfortable with where we are", Burritt said, according to a transcript.

The Trump administration ordered a review of the retaliatory auto tariffs enacted by China and singled out General Motors suggesting they could have prevented the layoffs and plant closures by following the businesses practices of other vehicle companies.

The stakes for Trump with mass GM layoffs are especially high given the USA president's vows to revive smaller cities and towns throughout the rust belt that have suffered job losses that Trump blames on bad trade agreements negotiated by his predecessor. The government invested about $50 billion to bail out GM as a result of the company's 2009 bankruptcy, and at one time held a 61 percent equity stake in the Detroit-based automaker.

Brown said he and Trump didn't talk about the president blaming the closure of the Lordstown plant on him.

GM defended the move as necessary to position the company for a changing market, as it faces weak sales for smaller cars and shifts resources towards investments in electric and autonomous vehicles.

"We're going to move forward and hope we can get this through Congress", the senator also told CNN on Thursday morning. 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. Trump has publicly threatened GM as he tries to follow through on campaign promises to boost American manufacturing - which he reiterated during a rally near the Lordstown facility previous year. "The booming!" he tweeted.

Through October, the USA imported more than 13 percent less steel compared with a year ago, while Europe has imported more than 10 percent for a record high, according to the Wall Street Journal, citing the European Steel Association.