President Trump threatened Tuesday to cut General Motors’ federal subsidies, including for electric vehicles, after the carmaker announced that it would lay off thousands of workers and shutter several North American facilities to focus attention on emissions-free and self-driving vehicles.
“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!” he wrote in a Twitter post.
….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
That post came shortly after top economic adviser Larry Kudlow told reporters that the White House was “looking at certain subsidies” to see if they will remain. A White House spokeswoman did not immediately respond to request for additional details on Trump and Kudlow’s comments.
[Opinion: Subsidies and bailouts here. Tariffs and taxes there. Now the GM plants are gone]
“I don’t know that there’s a specific timeline,” press secretary Sarah Sanders told reporters. “The president wants to see American companies build cars here in America not build them overseas.”
A GM spokesperson said the company is “committed to maintaining a strong manufacturing presence in the U.S., as evidenced by our more than $22 billion investments in U.S. operations since 2009.”
“Many of the U.S. workers impacted by these actions will have the opportunity to shift to other GM plants where we will need more employees to support growth in trucks, crossovers and SUVs. GM’s transformation also includes adding technical and engineering jobs to support the future of mobility, such as new jobs in electrification and autonomous vehicles,” the spokesperson said in an emailed statement.
Both Republican and Democratic lawmakers have criticized GM’s decision to close plants in Canada, Ohio, and Michigan, among other places. Trump, who spoke with Barra in advance of the announcement, told her the company was “playing around with the wrong person.”
GM has received billions of dollars in federal funding, much of it pertaining to the development of emissions-free cars, according to tracking website Good Jobs First. Among them is a $105 million grant from the Department of Energy to develop lithium-ion batteries for use in electric vehicles.
One related issue that could come up in Congress in the coming weeks is the expiration of an up to $7,500 tax credit for individuals who purchase electric vehicles. The industry is pushing Congress to renew that program, which lapses at the end of 2018. During a media availability a few hours after Trump’s tweets Rep. Kevin Brady R-Texas, the lead tax policy lawmaker in the House of Representatives, said he didn’t “anticipate any action on that in this session.”
The federal government also provides financial assistance to cities, states, and other entities that pursue initiatives involving zero emission public transportation. That program expires after fiscal year 2020.
