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Trump threatens General Motors with 'big border tax' over imported cars General Motors threatened by Trump with 'big border tax' over imports
(about 1 hour later)
President-elect Donald Trump threatened to slap a tax on General Motors for importing compact cars to the US from Mexico in another tweet targeting a US company. President-elect Donald Trump threatened slap a tax on General Motors for importing compact cars to the US from Mexico, the latest in a series of tweets to target the US company.
But GM makes the vast majority of compact Chevrolet Cruzes in Lordstown, Ohio, near Cleveland. Trump tweeted early Tuesday that GM was sending Mexican-made Chevrolet Cruzes to the US tax-free. He told GM to make the cars in the US “or pay big border tax!”
Trump tweeted early Tuesday that GM was sending Mexican-made Cruzes to the US tax-free. He told GM to make the cars in the US “or pay big border tax!” GM responded that it makes the vast majority of its Cruzes in Lordstown, Ohio, near Cleveland. Only hatchback versions of the Cruze are imported from a factory in Ramos Arizpe, Mexico, and those amount to only a small percentage of the 172,000 Cruzes sold by GM through November, spokesman Patrick Morrissey said.
GM imports only hatchback versions of the Cruze from a factory in Ramos Arizpe, Mexico, and those amount to only a small percentage of the 172,000 Cruzes sold by GM through November, spokesman Patrick Morrissey said. He was working to get the exact number. The hatchback is built in Mexico for global distribution, Morrissey said. Previous Trump tweets attacking other US companies briefly wiped billions off the share price of Lockheed Martin and Boeing. But the market was apathetic to Trump’s latest threats. GM shares were up 1.69% in morning trading.
GM shares fell by about 1% immediately after the tweet, but have bounced ahead of the opening bell Tuesday. GM’s Mexican Cruze production amounts to less than a day of output at the Lordstown plant, said Glenn Johnson, president of a United Auto Workers union local at the factory. The Lordstown factory, he said, was not equipped to build the hatchback. “It makes for news, that’s all,” Johnson said of Trump’s tweet.
Cruze hatchback production amounts to less than a day of output at the Lordstown plant, said Glenn Johnson, president of a United Auto Workers union local at the factory. The union, he said, was not protesting the move to build the hatch in Mexico. GM did import some Cruze sedans from Mexico last year to meet demand as it was rolling out a new version of the Cruze, Morrissey said, but that has stopped and all sedans sold in the US are now made in Ohio.
“It makes for news, that’s all,” Johnson said of Trump’s tweet. The Lordstown factory, he said, was not equipped to build the hatch. Ford has more often been the target of Trump’s ire over the outsourcing of jobs than GM. During his election campaign Trump praised GM and revealed he is the owner of at least three GM vehicles. GM chief executive officer Mary Barra is a member of Trump’s panel of business leaders assembled to advise the president-elect.
GM did import some Cruze sedans from Mexico last year to meet demand as it was rolling out a new version of the Cruze, Morrissey said, but that has stopped and all sedans sold in the US are now made in Ohio, he said.
The hatchback version just went on sale in the fall.
The tweet was the latest threat from Trump to tax automakers that move production to Mexico and ship products back to the US under the North American Free Trade agreement. Last year, Trump went after Ford for plans to shift production of the compact Focus to Mexico. Jobs at the Detroit-area factory that now makes Focuses would be preserved because the plant is to get a new small pickup truck and SUV.
But Trump’s targets have ranged from US retailers and defense contractors to tech companies. Amazon.com, Boeing and Macy’s have been the subject of Trump tweets in the past.