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Why GM could suffer under Trump policies to 'save' Detroit automakers

The article from Reuters discusses how General Motors (GM) could face challenges under the policies of former President Donald Trump, particularly if he were to return to office. Trump's previous administration had a mixed impact on the auto industry; while he was credited with saving Detroit's automakers through policies like tax cuts and deregulation, his approach to trade, especially with China, could pose significant risks for GM. Trump's potential policies include imposing high tariffs on Chinese imports, which could disrupt GM's supply chain and increase costs, given that GM has substantial operations in China. Additionally, his focus on bringing manufacturing back to the U.S. might not align with GM's current global strategy, potentially leading to higher production costs and less competitive pricing. The article also mentions that Trump's past criticism of electric vehicles (EVs) could conflict with GM's push towards electrification, potentially affecting investment and consumer demand for EVs. Overall, while Trump's policies might aim to bolster domestic manufacturing, they could inadvertently complicate GM's business model and strategic direction.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/why-gm-could-suffer-under-trump-policies-save-detroit-automakers-2024-12-03/ ]