Trump, Kudlow get 'very cross' with Barra, threaten GM's EV subsidies

WASHINGTON -- Donald Trump’s top economic adviser said he had conveyed to General Motors CEO Mary Barra the president’s anger over her plans to close U.S. factories and lay off thousands of workers.

“The president is very cross with her and of course I transmitted that,” National Economic Council director Larry Kudlow told reporters on Tuesday. “Tragically, they are going to lay off a whole bunch of workers.”

The GM CEO met with Kudlow at the White House on Monday shortly after announcing plans to shutter five factories in the U.S. and Canada and lay off about 14,000 employees. The meeting had been scheduled in advance, the White House said. Investors cheered the news, sending GM shares higher, but in Washington there was bipartisan anger that the company is trimming its workforce in the midst of an economic expansion.

Trump said Monday that he had spoken to Barra personally and told her to replace production at a politically sensitive Ohio factory instead of closing the facility.

Also on Tuesday, Trump said he may try to eliminate electric car subsidies for GM. 

"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," Trump said on Twitter.

GM responds

GM, in response, released this statement on Tuesday:

"GM is committed to maintaining a strong manufacturing presence in the U.S., as evidenced by our more than $22 billion investments in U.S. operations since 2009. Yesterday’s announcements support our ability to invest for future growth and position the company for long-term success and maintain and grow American jobs.

"Many of the U.S. workers impacted by these actions will have the opportunity to shift to other GM plants where we will need more employees to support growth in trucks, crossovers and SUVs. GM’s transformation also includes adding technical and engineering jobs to support the future of mobility, such as new jobs in electrification and autonomous vehicles. We appreciate the actions this administration has taken on behalf of industry to improve the overall competitiveness of U.S. manufacturing."

Trump criticized GM for not closing facilities in Mexico or China on Twitter.

“There’s great disappointment that it seems like GM would rather build its electric cars in China rather than the United States,” Kudlow said. “We are going to be looking at certain subsidies regarding electric cars and others and whether they should apply or not. Can’t say anything final about that, but we’re looking into it.”

White House spokesman Sarah Sanders told reporters on Tuesday that the president is looking into options.

"The president wants to see American companies build cars here in America not build them overseas and he is hopeful that GM will continue to do that here," she said.

Currently, consumers who purchase a fully-electric vehicle are eligible for a $7,500 federal tax credit. The credit begins to phase-out after an automaker sells 200,000 eligible vehicles, such as the Chevrolet Bolt electric car, which is built in a factory near Detroit. 

Tesla Inc. has already reached the cap and GM is expected to be next. Both companies have lobbied in Washington for an extension.

Some members of Congress have proposed raising the cap or otherwise extending the credit, including Senate Finance Chairman Orrin Hatch, R-Utah, and Sen. Dean Heller, R-Nev., where Tesla operates a large battery factory. Heller lost his re-election bid this month to Democrat Jacky Rosen.

Bloomberg and Reuters contributed to this report.