Friday , November 22 2019
Home / unitedkingdom / Trump dealt a blow to GM's stock to prove a point ahead of 2020

Trump dealt a blow to GM's stock to prove a point ahead of 2020



TThe sole purpose of President Trump's threat against General Motors ("We are now looking at cutting all @GM subsidies, including for electric cars") was sent to a signal to his supporters in the states that would be affected.

When Trump targeted the car manufacturer, GM's stock immediately dropped nearly 4 percent, though it crawled back in the following hours.

GM said it was cutting its salaried workforce by 15 percent and closing several plants in North America, including in Ohio and Michigan, to prepare for future market changes.

Trump, campaigning largely on a promise to reinvigorate manufacturing jobs in the U.S., won both states in the 2016 election.

CNN, citing an unnamed person "familiar with the matter," reported that there may not even be any actual government subsides for the trump to shut off.

But the threat was not so much a shot at getting GM to immediately reverse course as it was a throwback to the trump's campaign theme that American workers are getting shafted.

"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland," he said in his tweet. "Nothing being closed in Mexico & China." The U.S. saved General Motors, and this is the THANKS we get! "

GM gave no indication it had changed its mind, only saying in a statement, "We appreciate the actions of this administration has taken on behalf of industry to improve the overall competitiveness of U.S. manufacturing."

But the conflict reminds Trump supporters why they elected him, and that was the point.


Source link