General Motors (GM) shares dipped lower Thursday after President Donald Trump said the carmaker "isn't going to be treated well" if it moved some of its production facilities outside of the United States after slashing jobs in three heartland states.
In an interview broadcast on Fox News, Trump said relocating plants abroad would be "uncomfortable" for GM, a company he has earlier accused of betraying taxpayers with plans to cut nearly 15,000 jobs despite receiving nearly $50 billion in federal rescue funds following the global financial crisis in 2009.
"I don't like that General Motors does that," Trump told Fox News. "And they're going down to Mexico to make cars? The new deal that I made really makes it very uncomfortable for people to go out of the country and it will be very uncomfortable for them. General Motors is not going to be treated well."
GM shares which opened more than 30 cents higher from their Wednesday close and traded at $35.96, fell into negative territory following the President's remarks and were last marked 1% lower at $35.34 each.
GM said on November 26 that it would shutter five plants in North America, including in Maryland, Michigan and Ohio and cut 15% of the salaried workforce, including 25% fewer executives, as part of an effort to streamline decision making.
Trump at the time said the government would be "looking at cutting all GM subsidies, including for electric cars."
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....— Donald J. Trump (@realDonaldTrump) November 27, 2018
"These were very difficult decisions - decisions I take very personally," GM CEO Mary Barra said after meeting lawmakers on Capitol Hill last week. "I reiterated to all members I met with this week from Michigan, Ohio and Maryland that many hourly employees at the impacted U.S. plants will have the opportunity to work at other U.S.GM plants and that we are committed to working with them to minimize the impact on the communities."
GM receives about $943 million a year in federal subsidies, according to Good Jobs First, a national policy resource center that tracks subsidies.
While Trump, Canadian Prime Minister Justin Trudeau, the United Automobile Workers union, and Canada's Unifor, which represents 315,000 unionized workers, all expressed their disappointment with the restructuring plan, shares surged on Monday as investors applauded the cost-costing initiatives the company plans to do in response to a slowing auto market.