Trump gives a blow to GM shares to prove one point ahead in 2020


THe is the only aim of President Trump's threat to General Motors ("We are now considering cutting all subsidies @GM, including for electric cars") is to send signals to supporters in the states that will be affected.

When Trump targeted the carmaker Tuesday on Twitter, GM shares immediately fell almost 4 percent, even though it climbed in the following hours.

GM said on Monday it was reducing its 15 percent salaried workforce and closing several factories in North America, including in Ohio and Michigan, to prepare for future market changes.

Trump, campaigning largely on promises to revive manufacturing jobs in the US, won both countries in the 2016 elections.

CNN, citing unnamed people "familiar with the matter," reported that maybe no government actually stopped for Trump to shut down.

But the threat was not so much to get GM to immediately reverse direction because it was a setback to the theme of Trump's campaign that American workers were increasingly disrupted.

"Very disappointed with General Motors and their CEO, Mary Barra, for closing factories in Ohio, Michigan and Maryland," he said in his tweet. "Nothing is closed in Mexico & China. The US saved General Motors, and this is thank you!"

GM did not give an indication that it had changed his mind, saying only in a statement, "We appreciate the actions taken by this government on behalf of the industry to improve the competitiveness of US manufacturing as a whole."

But the conflict reminded Trump supporters why they chose him, and that's the point.


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