Trump warns GM could lose subsidies over layoffs

Trump says studying new auto import tariffs

Trump says studying new auto import tariffs

"Look, we made this deal, we've worked with you along the way, we've done other things with mileage standards, for example, and other related regulations", Kudlow said, referencing the recently negotiated U.S. -Mexico-Canada trade agreement.

GM's stock rose almost 5% on the news Monday, then fell 2.5% Tuesday as President Trump threatened to cut federal subsidies to GM because of the layoffs.

General Motors is closing a Canadian plant at the cost of about 2,500 jobs, but that is apparently just a piece of a much broader, company-wide restructuring that will be announced as early as Monday.

Holden says these plans remain in place, despite the wide-ranging decisions taken in Detroit that will now see its global product development operations further "compressed" and major cutbacks made at production facilities in North America and elsewhere.

But its outlook is bleak after GM announced production of the Chevy Cruze would stop in March, halting work at the assembly plant that already had lost two shifts and 3,000 union jobs since the beginning of past year.

While that's little comfort to the thousands of GM employees impacted by the changes, the company said many factory workers will have the option to transfer to other plants where the company builds more successful trucks, crossovers and SUVs. In 2009, for instance, GM announced that it meant to close a huge assembly plant in Orion Township, Michigan, north of Detroit.

Those five plants now build cars that won't be sold in the US after 2019, so they could close or get different vehicles to build.

When news emerged late Sunday that the company was planning to shut down its flagship Canadian plant in Oshawa, Ont., putting more than 2,500 people out of work, social media set its sights on Trump's "America First" strategy for bringing manufacturing jobs back to US soil. Also at risk are two transmission plants, one outside Detroit and another in Baltimore.

Homeland Security: We Are Prepared to 'Shut Down' Ports of Entry
President Trump said he would not hesitate to close the border altogether if he feels the US might be losing "control". Trump wants migrants to remain in Mexico while their United States asylum cases are adjudicated.

GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong", Barra told reporters.

The company has marked a sedan plant in Detroit, which makes the Buick LaCrosse, a compact vehicle plant in OH, and another assembly plant outside Toronto for possible closure. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the OH plant, and an overall strategic shift towards more popular crossover and SUV models.

GM chief executive Mary Barra said the decision will put the USA car-maker in a better position for the future.

GM isn't the first to abandon much of its vehicle market. So I said: "'Then put a vehicle that is selling well in there but get it open fast'". Up to 14,000 workers in the US and Canada will be laid off by the end of this year. We are now looking at cutting all @GM subsidies, including for electric cars.

The president also threated the company in the continuation of his tweet.

By the end of 2020, GM is projecting a freed-up cashflow of $US6 billion ($A8.31 billion), along with $U4.5 billion ($A6.24 billion) in cost reductions and a $US1.5 billion ($A2.08 billion) lower capital expenditure.

In total, GM's North American salaried workforce will shrink by 15 percent (8,000 jobs). That's OH, ' " he said Monday. That largely ceremonial step has been uncertain as Canada and Mexico seek an end to their standoff with the US over steel and aluminum tariffs.

The likely shutdowns have already opened up GM to political pushback, with Canada's Prime Minister Justin Trudeau tweeting that he has expressed "deep disappointment" with Barra directly.

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