Trump Takes Threats To GM To Next Level After ‘Very Tough’ Phone Call; GM Shares Crash

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The stock market didn’t like the sound of President Trump’s latest comments about General Motors’ plan to shutter five U.S. plants and fire over 14,000 U.S. and Canada-based employees. After Trump threatened to end “all GM subsidies” Tuesday, shares for the company fell precipitously.

“Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland,” Trump tweeted Tuesday. “Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including 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!”

Wall Street was clearly tuned in to Trump’s response. “The automaker’s shares fell following the tweets and were down more than 3 percent on Tuesday afternoon, on track for their worst day in a month,” CNBC reports.

Trump’s ominous posts followed comments he made to reporters Monday in which he said he had a conversation with GM CEO Mary Barra with whom he was “very tough” about the company’s plans. GM’s 15% downsizing of its workforce will impact some 14,800 jobs in the U.S. and Canada and shut down five U.S.-based plants in Detroit and Warren, Michigan, Warren, Ohio, and White Marsh, Maryland. – READ MORE

 

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