President Donald Trump threatened on Tuesday to cut all General Motors subsidies after the leading automative company announced that it will remove thousands of employees.
He tweeted: ‘’Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland,” Trump tweeted. “We are now looking at cutting all @GM subsidies, including for electric cars.”
It’s not clear what subsidies he was referring to.
The federal government provides that tax credit for each plug-in vehicle purchased. However, this subsidy goes away once an auto maker reaches 200,000 electric cars sold. And GM may hit that threshold by the end of the year, making its 2019 and 2020 tax credits smaller.
Jeremy Acevedo, manager of industry analysis at Edmunds said “The entire industry qualifies for this. It’s nothing exclusive to GM.’’
The GM job cuts hurt Trump’s campaign promise to bring back American auto jobs.
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