GM won’t be treated well after plant closures, Trump warns
President Trump railed against the CEO of General Motors, Mary Barra, on Thursday, calling her “nasty” and saying the auto manufacturer would not be treated well moving forward, regarding its decision to slash 15 percent of its North American workforce and halt production at several plants.
“I don’t like what she did,” Trump said during an interview with Fox News’ Harris Faulkner. “It was nasty. Ohio is going to replace those jobs in two minutes.”
The closures of five GM facilities in Ohio, Michigan, Maryland and Ontario -- announced at the end of November -- came as the largest American auto manufacturer looks to cut costs amid restructuring. It could affect up to 14,000 employees. GM will also cease production of several car models, including the Chevrolet Cruze and the Buick LaCrosse.
Barra said GM is making the cuts to “get in front of it while the company is strong and while the economy is strong,” but also suggested that tariffs Trump imposed on imported aluminum and steel have hurt the company.
Since then, she has drawn the ire of the president, who’s disparaged her and the company, threatening to cut all subsidies for GM (the government hands out federal tax credits worth $7,500 to customers who buy electric vehicles).
Trump escalated those criticisms several weeks later, warning that GM “is not going to be treated well” because of the decision and that it's all-electric push would fail.
"They've changed the whole model of General Motors," he said. "They've gone to all electric. All-electric is not going to work."
GM shares dipped lower on the comments, falling 1.4 percent in trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.68 | +0.81 | +1.48% |
“The new USMCA I made makes it uncomfortable to go out of the country,” Trump added, referring to the trade deal he negotiated with Canada and Mexico to replace NAFTA. “I think she is making a big mistake.”