UPDATE: Trump Threatens Import Tax on Mexican-Made GM Cruze Cars

President-elect Donald Trump threatens to impose a “big border tax” on Chevrolet Cruze small cars made by General Motors Co. in Ramos Arizpe, Mexico.

The carmaker asserts that almost all Cruze five-door hatchbacks produced in Mexico are sold outside the U.S. All Cruze four-door sedans sold in the U.S. are built at GM’s factory in Lordstown, Ohio. Only 2% of the 190,000 Cruze cars sold in the U.S. last year were made in Mexico, according to the company.

GM announced in March it would spend $350 million preparing the Ramos Arizpe plant to make the next-generation Cruze. The company said at the time that Cruze production also would continue at Lordstown.

U.S. demand for the Cruze plunged 18% to 171,600 units through the first 11 months of 2016, according to Autodata Corp. GM said in November that the Ohio plant would discontinue third-shift production later this month to help balance output with demand.