Home / Business / GM shares collapse after Trump threatens to cut back on all subsidies

GM shares collapse after Trump threatens to cut back on all subsidies

"Very disappointed with General Motors and its CEO Mary Barra for closing plants in Ohio, Michigan and Maryland," Trump tweeted. "We are now checking the reduction of all @ GM subsidies, including electric cars."

The GM (GM) share fell 3.8% from the comments. GM closed 2.6%, making up part of Monday's gains.

It is not clear what subsidies Trump was referring to.

A person familiar with the matter told CNN Business that GM did not know of any major state subsidies received by the company beyond a $ 7,500 tax credit. that goes to the consumer, not to the company.

The federal government grants this tax credit for each purchased plug-in vehicle. However, this subsidy goes away when an automaker reaches 200,000 electric cars sold. GM could reach this threshold by the end of the year and reduce tax credits for 201

9 and 2020.

"The entire industry is qualified for this, it's not something exclusive for GM," said Jeremy Acevedo, industrial analysis manager at Edmunds.

Tesla (TSLA), the leading manufacturer of electric cars, had already reached the 200,000-milestone year. The tax credit will decrease on January 1st.

In a statement, GM said it remains committed to "maintaining a strong manufacturing footprint in the US." The company has reported investments of more than $ 22 billion since 2009. The restructuring announced on Monday aims to support future growth and long-term success. GM said that "many" affected workers will have the opportunity to switch to other GMO plants.

"We appreciate the measures that this administration has taken on behalf of the industry to improve the overall competitiveness of US industry," said GM.

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Peter Valdes-Dapena of CNN Business contributed to this report.

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