General Motors Company (ticker: GM) is pushing back after President-elect Donald Trump early-morning Twitter attack, in which the incoming president took aim at GM for making its Chevrolet Cruze in Mexico and shipping them tax-free to the U.S. for sale.
That’s not the full story, says GM.
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump)
“General Motors manufacturers the Chevrolet Cruze sedan in Lordstown, Ohio,” a General Motos spokesman told U.S. News & World Report in a statement Tuesday. “All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio.”
GM says it also builds the Cruze hatchback in Mexico to sell in global markets, and only a “small number” of those are sold in the U.S. It did not clarify the number. The hatchback model went on sale in the U.S. for the first time this fall.
USA Today notes that Trump has attacked the North American Free Trade Agreement before, criticizing the swift production shift of U.S. vehicles from the U.S. to Mexico. The auto industry is in favor of NAFTA, though the United Auto Workers union agrees with Trump. He also suggested a 35 percent tariff on Mexican-made U.S. imports.
“I’m prepared to sit down and talk to him about trade. NAFTA is a problem,” UAW President Dennis Williams told reporters following the election. “I think his position on trade is right on.”
Trump previously had been targeting Ford Motor Co. ( F) for Mexican-made vehicles. GM’s CEO Mary Barra recently agreed to be a part of a CEO economic policy advisory panel to Trump, reports USA Today.
General Motors stock is up nearly 2 percent in early trading.
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General Motors Company (GM) Rejects Donald Trump’s Latest Twitter Attack originally appeared on usnews.com
