Auto tariffs being considered after GM layoff plans

President Trump is not pleased with General Motors

President Trump is not pleased with General Motors

The U.S. president's senior economic adviser was in the middle of a White House briefing when Trump delivered his latest broadside, a full 24 hours after General Motors announced plans to cut more than 14,000 jobs and end production at five plants, including one in Oshawa, Ont.

President Donald Trump is heralding that as proof his trade policies are creating American manufacturing jobs, but BMW says its plans date back years and remain uncertain.

"They got billions of dollars - GM did - most of that money went into the pockets of executives and stock buybacks and big investors and they should be investing that in this company and in this plant".

Trump wrote that he was "Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland". He said it was "clear" that GM "doesn't respect" the Lordstown workers, and slammed the auto company for not doing enough to reinvest the savings from its tax cuts.

White House spokesman Sarah Sanders told reporters on Tuesday that the president is looking at options.

The United States doesn't have a command economy controlled by Washington (thank god) and politicians should never be involved in business decisions.

BMW South Carolina Factory
Auto tariffs being considered after GM layoff plans

GM has been lobbying Congress, along with Tesla Inc, to lift the current cap on electric vehicles eligible for tax credits, but any action by Congress before 2019 is a long shot, congressional aides said.

Like GM, Ford Motor Co. said it will exit much of the passenger-car market to focus on SUVs and trucks.

"We can confirm that we are considering building an engine plant in the supply BMW vehicles manufactured in the USA and Mexico", Domonic Stoiber with BMW's Corporate and Governmental Affairs said in a statement. But GM is on the cusp of reaching its subsidy limit.

In a statement Tuesday afternoon, GM tried to appease the Trump administration while justifying the decisions it announced Monday. The company has also promised to add technical and engineering personnel to support the development of electric and autonomous vehicles. Trump at the time of that announcement said the automaker was moving its plant from Mexico to MI, which wasn't quite the case. Tesla surpassed 200,000 cumulative EV sales in the USA earlier this year, and Bloomberg NEF analysts project that GM will probably exceed that mark this quarter. GM did receive government bailout funds after the financial crisis, as did many other companies, but it repaid its USA loans - $6.7 billion - in 2010.

Keeping open a plant slated for closure is not without precedent for GM. "Today, GM is continuing to take proactive steps to improve overall business performance, including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce".

The president reiterated on Twitter that "countries that send us cars have taken advantage of the USA for decades". The United States slapped an additional 25 percent tariff on Chinese-made vehicles earlier this year, prompting China to retaliate.

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