President Trump said on Twitter Tuesday that he is looking at ending electric vehicle subsidies for General Motors over its decision to idle four plants in the U.S. and cut 15% of its salaried workforce.
Be smart: As Axios' Dan Primack notes, there are no GM-specific electric vehicle subsidies. Instead, there are industrywide federal tax credits of up to $7,500 on EVs purchased in the United States, with aggregate caps of 200,000 vehicles per manufacturer. GM is currently bumping up against its cap, while Tesla has already hit it. Trump also could not end the credits without the help of Congress, which soon will have a Democrat-controlled House.
"Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. 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!"
The big picture: White House economic adviser Larry Kudlow told reporters earlier Tuesday that Trump felt like GM "turned their back on him." Politics is always personal for Trump, and in this instance, GM's move could result in very real policy implications.
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