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Analysis-Why GM could suffer under Trump policies to save Detroit automakers | U.S. & World [Video]

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Canadian Economy and Markets

By Nora Eckert and Chris Kirkham

(Reuters) – It might seem like U.S. President-elect Donald Trump’s plan to gut automotive emissions restrictions and fuel-efficiency standards would be a boon to General Motors, America’s leading purveyor of full-sized trucks and SUVs and its biggest tailpipe polluter.

Yet GM has emerged as Detroit’s biggest potential loser from Trump’s expected automotive-policy shifts.

The automaker may eventually realize moderate benefits from eased pollution restrictions. But GM faces immediate and severe threats from the incoming administration’s plans to end a $7,500 consumer electric-vehicle subsidy, first reported by Reuters, and to slap a 25% tariff on imports from Canada and Mexico. GM is among the most exposed companies on both fronts because of its aggressive EV investments and its extensive manufacturing of U.S.-market vehicles in these neighboring nations.

GM did not comment on how Trump policies would impact its business but said in a statement that it would be a “constructive partner” …

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