GM Announces $1B US Investment

Josh Kim
January 17, 2017

In each case, the automakers have said their new investments were either in the works for months or have said changing market conditions are the primary reason for the investments even while citing an expected pro-business environment under Trump as a factor. The investments are on top of a further US$2.9 billion investment announced previous year. The pattern continued on Tuesday. "Make in U.S.A or pay big border tax!".

Both Ford and FCA have said their recent announcements were not spurred by Trump's comments.

GM also said it plans to bring back information technology jobs that were previously outsourced to foreign countries in a move that will create 5,000 new IT jobs in the USA over the next few years.

But Paul noted this is nothing new.

President Calls Out Other Auto Companies.

The automaker said Tuesday it will add thousands of new jobs in the next few years, including in-sourcing axle work from a supplier that includes work now done in Mexico. "That's where our attention needs to be focused".

GM appears to be in a better position than most automakers to have Trump's ear.

"That's been on the table for some period of time", Montgomery Mayor Todd Strange said in 2015. Hyundai Motor Manufacturing Alabama spokesman Robert Burns said there are many reasons for that, including the age of the plants in Korea and efforts to continuously upgrade and streamline the Alabama facility.

Overall, more than 5,000 new U.S.jobs will be created over the next few years because of GM's latest moves, Barra said without providing more specifics. "So from a presentation and communications standpoint, he's had an effect". In lieu of his criticism, the company withdrew their Mexico Plant investment and chose to have the resources disseminated in both the MI and OH plants of the company in the U.S.

Automakers had in some cases begun moving small-car production to Mexico, but Trump's threats of a border tax on imports to the U.S. has made that proposition politically challenging.

GM also defended its record in expanding the USA manufacturing base since its 2009 restructuring.

Trump bogusly claimed in November that he had stopped Ford from closing a plant in Kentucky.

Days after Ford Motor Company cancelled its $1.6 billion plant in Mexico and said it would invest part of that saved money in the United States and create jobs, followed by an announcement from Fiat Chrysler that it would expand its current manufacturing plants in the United States, General Motor is ready to bow to Trump's demand of make in the United States. Since 2009, the company said, it's invested $21 billion in the U.S.

Barra is an adviser to Trump as a member of his "Strategic and Policy Forum". Trump has frequently threatened to slap a 35% border tax on products imported from Mexico and to pull out of the North American Free Trade Agreement.

The company expects to release more information about individual investment projects throughout the year.

Returning automotive jobs to the United States is the theme of the announcement by General Motors this morning that it is investing $1 billion in its American-based manufacturing.

With the United States market now running at a peak level for sales - 17.55 million vehicles rolled off dealers lots in 2016, a record - carmakers have been reluctant to build new factories for fear that they will be forced to idle them in a downturn.

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