& # 39; Not many blows & # 39; behind Trump's threat to cancel EV subsidies for GM, experts say



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CTVNews.ca staff with files from Richard Madan

Published Tuesday, 27 November 2018 21:58 EST

Last Updated Tuesday, November 27 2018 10.04 EST

US President Donald Trump has threatened to cut electricity vehicle subsidies for General Motors on Tuesday over plans to close the plant, but an industry expert said it would have little impact on the company.

The towering closure, which includes four US factories and one in Oshawa, Ontario, is estimated to cost 14,000 American jobs and 2,900 other positions in Canada.

Trump, who is campaigning for a promise to restore manufacturing jobs and win Rust Belt key countries in the 2016 presidential election, write on Twitter that "we are now considering cutting all GM subsidies, including for electric cars."

Jeremy Acevedo, an automotive industry analyst with Edmunds in Santa Monica, Calif., Told CTV News that GM would hardly see a cut in subsidized electric vehicles (EV).

"Maybe it was a threat, but not with many blows behind it," he said.

An EV subsidy is a $ 7,500 tax credit for consumers who buy electric vehicles.

"The way the rental works, and is very popular here now, there are many opportunities for GM and the dealer network to really absorb the tax credit and provide cheap rent to buyers out there," Acevedo said.

However, credit – which is industrial in nature – was phased out after a company sold 200,000 electric vehicles, and GM was only a few months away from that target.

"Cutting off electric vehicle subsidies for GM will really be a problem almost nothing at all," Acevedo explained. "Really, they will do it themselves. They have tremendous momentum to sell EV and their plug-in vehicles, so they are very close to the 200,000 figure. "

Trump spoke to Prime Minister Justin Trudeau about losing GM's job on Tuesday, with the two leaders expressing their disappointment.

GM said it would close five factories in Oshawa, Detroit, Ohio, Maryland and Michigan. The company also announced plans to halt operations at three more factories outside North America by the end of 2019.

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