Photo: screenshot from Twitter
After General Motors announced that it would close a lot of plants in the United States, Canada, South Korea, and two more in the rest of the world, the President couldn’t let the biggest of the Big Three in Detroit have its way without consequences. And boy, there will be consequences.
The first of two tweets starts with “very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan, and Maryland. Nothing being closed in Mexico & China.” Considering the "America First" policy of the Republican Party and the growing influence of China in terms of outsourcing with American companies, we believe this is a fitting assessment.
Trump then goes on to remind us that General Motors were saved by the U.S. government in 2009, “and this is the thanks we get.” The Twitter tirade continues with a threat to cut all subsidies, “including for electric cars.” President Trump doesn’t appear to be in the know in this regard considering that the government grant for General Motors will drop to $3,750 on January 1st, 2019.
Beginning July 1st, the credit will be reduced once more to $1,875. Come December 31st, General Motors will no longer be incentivized by the federal government for selling electric vehicles. The reason for this phase-out is that the Detroit-based juggernaut sold more than 200,000 electric vehicles, the second automaker to do so after Tesla.
“General Motors made a big China bet years ago when they built plants there (and in Mexico); don’t think that bet is going to pay off,” added Trump. “I am here to protect America’s workers,” referring to the 15-percent salaried and salaried contract staff reduction. General Motors announced that the layoffs include 25 percent of the automaker’s executive positions.
The saga isn’t over yet for General Motors, which will have it rough during the upcoming union negotiations. Navigating the political headwinds is another complication for Mary Barra and General Motors, but at the end of the day, we’re with Trump on this one.
Trump then goes on to remind us that General Motors were saved by the U.S. government in 2009, “and this is the thanks we get.” The Twitter tirade continues with a threat to cut all subsidies, “including for electric cars.” President Trump doesn’t appear to be in the know in this regard considering that the government grant for General Motors will drop to $3,750 on January 1st, 2019.
Beginning July 1st, the credit will be reduced once more to $1,875. Come December 31st, General Motors will no longer be incentivized by the federal government for selling electric vehicles. The reason for this phase-out is that the Detroit-based juggernaut sold more than 200,000 electric vehicles, the second automaker to do so after Tesla.
“General Motors made a big China bet years ago when they built plants there (and in Mexico); don’t think that bet is going to pay off,” added Trump. “I am here to protect America’s workers,” referring to the 15-percent salaried and salaried contract staff reduction. General Motors announced that the layoffs include 25 percent of the automaker’s executive positions.
The saga isn’t over yet for General Motors, which will have it rough during the upcoming union negotiations. Navigating the political headwinds is another complication for Mary Barra and General Motors, but at the end of the day, we’re with Trump on this one.
Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including....
— Donald J. Trump (@realDonaldTrump) November 27, 2018
....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!
— Donald J. Trump (@realDonaldTrump) November 27, 2018
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