Trump Slams GM, Threatens Company

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General Motors Co.'s pre-emptive strike to get leaner before the next downturn likely will be followed by Ford Motor Co., which has said it is restructuring and will lay off an unspecified number of white-collar workers. I said: 'I heard you're closing your plant.

The White House rebuke appears to fly in the face of long-held Republican opposition to picking winners and losers in the marketplace.

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

Trump said Monday that he had spoken to Barra personally and told her to replace production at a politically sensitive OH factory instead of closing the facility.

The BBC has contacted GM for comment on the president's remarks, and is waiting for a response.

Currently, consumers who purchase a fully-electric vehicle are eligible for a $7,500 federal tax credit. But GM is on the cusp of reaching its subsidy limit.

GM now builds just one vehicle in China that it exports to the United States - the Buick Envision.

At a rally near GM's Lordstown, Ohio, plant last summer, Trump told people not to sell their homes because the jobs are "all coming back".

The meeting was planned prior to GM's announcement on Monday, the official said.

"We are right-sizing capacity for the realities of the marketplace", Chief Executive Mary Barra said, adding that the cuts were prompted by auto industry changes.

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GM will stop production at the following three plants: Lordstown, Ohio; Hamtramck, Michigan; and Oshawa, Ontario.

More than 16 months ago, the UAW confirmed that it was discussing with GM the potential threat to plants and jobs from slumping USA sedan sales.

GM said it has invested more than $22 billion in US operations since 2009, when it exited bankruptcy protection. The Trump administration has not yet ruled on the request. He has never been shy about voicing his frustration with their decisions. OH is a critical political battleground in presidential elections. Under that deal, Carrier pledged to keep almost 1,100 jobs in Indianapolis, including some 800 furnace production jobs it planned to cut with outsourcing. They will be part of contract talks with the United Auto Workers union next year.

All these actions are expected to increase GM's annual adjusted automotive free cash flow by $6 billion on a run-rate basis by year-end 2020, according to the company. GM curtailed manufacturing operations in South Korea earlier this year, and the idling of the Oshawa plant had been widely reported in the Canadian press as under discussion.

The company will also stop making the models assembled at those plants - the Chevy Cruze, Cadillac CT6, and the Buick LaCrosse.

GM jumped as much as 7.9 percent to US$38.75, the highest since July, as of 12:20 p.m.in NY trading.

The closures also drew sharp criticism from the United States and Canadian labour union representing GM workers, which accused the company of shifting production overseas at the expense of North American workers.

As recently as 2012, passenger cars made up more than 50 percent of all USA new vehicle sales.

While industry-wide passenger vehicle sales were down 13.2 percent through the first nine months of the year, pickup truck and SUV sales rose 8.3 percent.

The moves include shuttering seven plants worldwide as the company responds to changing customer preferences and focuses on popular trucks and SUVs and increasingly on electric models. "We think it's appropriate to get in front of it while the business and the economy are strong".

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