GM pledges $1 billion U.S. investment

DETROIT — A week after President-elect Donald Trump criticized its production of cars in Mexico, General Motors on Tuesday pledged to invest $1 billion at several plants in the U.S.

The automaker also said it plans to bring thousands of information technology jobs back to the U.S. from overseas. The moves will create 7,000 new manufacturing and IT jobs in the U.S., the company said.

GM denied the announcement was a response to pressure from Trump, saying the investments have been planned for some time.

The automaker said the new investment comes on top of $2.9 billion in investments announced in 2016 and more than $21 billion GM has invested in its U.S. operations since 2009. GM also said it will begin work on bringing axle production for its next-generation full-size pickup trucks, including work previously done in Mexico, to plants in Michigan, creating 450 U.S. jobs.

“All of the decisions behind today’s announcement are good business decisions and they have been in the works for some time,” said GM spokesman Pat Morrissey. “There’s no question there is an emphasis on job creation in the U.S. right now. This was good timing for us to share what we are doing, including our ongoing commitment and track record for U.S. investment over the last several years.”

Trump moved quickly to take credit for the investment with two tweets:

“With all of the jobs I am bringing back into the U.S. (even before taking office), with all of the new auto plants coming back into our ... country and with the massive cost reductions I have negotiated on military purchases and more, I believe the people are seeing ‘big stuff.’”

The automaker declined to say if it briefed Trump on the investment decisions and also declined to identify the individual plants that will gain work, saying details will be announced throughout the year.

"As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners," GM CEO Mary Barra said in a statement.

GM said it has been shrinking its presence outside of the U.S. in recent years as it has strived to improve efficiency. GM employs 56,000 hourly workers in the U.S., up from 51,000 at the end of 2009 after it emerged from bankruptcy.

In 2015, GM announced plans to invest $8.3 billion in the U.S. over a four-year period while adding 3,300 jobs as it negotiated a new four-year contract with the United Auto Workers union.