Trump swears to US "GM" to reduce support … What is the reason?



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DUBAI (Reuters) – US President Donald Trump has vowed to reduce support from General Motors, the US automaker, under federal law if the company plans to cut its workforce in the United States.

On Tuesday, General Motors announced a major restructuring plan for its global business, including production cuts at five North American factories, cutting 14,000 jobs by the end of next year and a 15 percent reduction in wages, including the Executive.

"I am very disappointed with General Motors and its chief executive, Mary Parra, for shutting down factories in Ohio, Michigan and Maryland, while none have been closed in Mexico and China," Trump said in a tweet through his official Twitter account.

"The United States saved General Motors," Trump said. "This is our thank you. We are now looking to reduce all subsidies, including support for electric vehicles."

Electric cars, manufactured by General Motors, are entitled to a tax deduction of $ 7.5 thousand under US federal law.

"We are seeing GM's restructuring steps needed to ensure the sustainability and long-term independence of GM," Adam Jones, an automotive analyst at Morgan Stanley, wrote in a note to clients quoted by CNN.

GM believes the restructuring plan will make it more efficient, providing $ 6 billion per year by the end of 2020.

"The actions we take today are smarter, more flexible and profitable, which will help us invest in the future. We recognize the need to meet changing market conditions and customer preferences to achieve long-term success," said Mary Parra, Chief Executive Officer.

Like other US companies, General Motors suffers from rising costs after imposing tariffs on imported steel and aluminum, which raised costs by around $ 300 million in the third quarter and is expected to increase by $ 1 billion next year, as well as concerns about higher parts costs. the government continued its plan to charge them.

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