Trump threatens to cut GM subsidies amid layoffs, possible plant closures

General Motors stock jumped to its highest point since July following CEO Mary Barra's announcement of the plan

"We are determined to do everything we can to convince General Motors to make Lordstown part of the future of auto manufacturing", he said.

Trump criticised GM for not closing facilities in Mexico or China on Twitter.

"The layoffs are the inevitable outcome of an economic model that views workers as disposable and shareholder excitement as indispensable", said Scott Paul, president of the Alliance for American Manufacturing, a nonprofit that advocates for worker protections in the industry.

GM's stock price surged on the heels of the announcement, closing at 37.65, up almost 5 percent on the day.

Four factories in the US and one in Canada could be shuttered by the end of 2019 if the automaker and its unions don't come up with an agreement to allocate more work to those facilities, GM said in a statement Monday. In October, nearly 65 percent of new vehicles sold in the USA were trucks or SUVs. Oshawa assembly plant in Oshawa, Ontario, Canada, on Monday, Nov. 26, 2018.

Canadian Prime Minister Justin Trudeau said he spoke with Barra and expressed "deep disappointment".

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.

"General Motors decision today to stop production at the Lordstown, Ohio, and Hamtramck, Michigan, assembly plants will idle thousands of workers, and will not go unchallenged by the UAW", Terry Dittes, UAW Vice President in charge of negotiations with GM, said.

The heavily government-subsidized Chevy Volt, which the Obama administration promoted as the future of GM, is being discontinued, along with several other sedans, including the Cruze, the Impala, the Buick LaCrosse and the Cadillac CT6 and XTS.

Could Korean production be under threat? The Cruze is being axed in America with production continuing in Mexico but GM Korea has been underperforming

"We recognise the need to stay in front of changing market conditions and customer preferences to position our company for long-term success", Barra said. By that schedule, GM would no longer qualify for the credit after the first quarter of 2020.

While industry-wide passenger vehicle sales were down 13.2 percent through the first nine months of the year, pickup truck and SUV sales rose 8.3 percent.

About 6,000 factory workers could lose jobs in the USA and Canada, although some could transfer to truck plants.

Like Trump, Sen. Chris Van Hollen said in a statement that he was "deeply disappointed and frustrated" with the company.

Trump also said that the tariffs, which GM warned would "undermine [its] competitiveness against foreign auto producers.", have "nothing to do" with the layoffs.

GM will stop producing cars and transmissions at the plants through 2019.

GM, which employs around 180,000 staff, yesterday said it would slash 8,000 salaried jobs and another 6,000 part-time ones.

Ohio's incoming governor, Republican Mike DeWine, said he plans on meeting with GM officials and make a case for the plant after he takes office in January.

The job cuts from GM's current 180,000-strong work force will be particularly stinging in politically crucial areas of OH and MI, a region US President Donald Trump has promised to revive.

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