President-elect Donald Trump issued a threat to General Motors Tuesday morning: Make the Chevy Cruze in the U.S. or face a large tax for shipping a Mexican made model to the United States.
“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!” Trump said in a post on Twitter.
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) January 3, 2017
GM responded to Trump’s tweet Tuesday morning, saying the company makes a large majority of its Chevy Cruze models in the U.S., and sells only a “small number” of the Mexican made Cruze hatchback model to the U.S.
“General Motors manufactures the Chevrolet Cruze sedan in Lordstown, Ohio. All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S,” General Motors said in a statement.
GM said that of the 190,000 Cruzes sold in the U.S. in 2016, only about 4,500 of those were made in Mexico.
Following Trump’s tweet, shares of GM fell approximately 1 percent prior to the market opening.
Trump has repeatedly told car manufacturers that he intends to impose a 35% tax on cars they build in Mexico to sell in the U.S. market.