President-elect Donald Trump had tweeted this morning claiming that GM is sending a Mexican made model of Chevy Cruze to U.S. car-dealers tax free. Trump wants them to produce within the United States or for Chevy to pay a hefty border tax.
General Motors Company (NYSE: GM) defended itself against Trump’s tweet attack this morning stating that only a “small number” of Mexican-made Chevy Cruze model is sold within the United States. “All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio,” the company said in a statement. “GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.”
Out of the 190,000 Cruzes sold in the U.S. in 2016, 2.4 percent or 4,500 of those were made in Mexico. Although GM began to fall during premarket after Trump’s tweet, looking at the intraday chart, General Motors seems to have reversed and broke past $35.
Trump continues to harass American companies as they move production overseas to save money. Trump has also criticized Boeing Company (The) (NYSE: BA) and Lockheed Martin Corp. (NYSE: LMT) on twitter for “overly expensive defense contracts.