GM vows jobs, plants
A week after blast from Trump, automaker follows Ford, Fiat Chrysler in new focus on U.S.
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
7,000
New manufacturing and IT jobs GM plan will create in the U.S.
56,000
Hourly workers GM employs in the U.S., up from 51,000 at the end of 2009 after it emerged from bankruptcy
$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. “The U.S. is our home market and we are committed to growth that is good for our employees, dealers and suppliers and supports our continued effort to drive shareholder value.”
GM said it has been shrinking its presence outside 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.
GM also has been aggressively investing in Mexico and has had to layoff employees at plants in the U.S. as car sales have declined. Since late 2014, GM has announced more than $10 billion of investments and more than 5,000 new jobs in Mexico.
What started in 2015 with Trump frequently criticizing Ford for expanding its presence in Mexico has morphed into something much larger. Trump, in recent weeks, has turned his attention on GM, Fiat Chrysler Automobiles, Toyota and even German automakers.
Trump first slammed GM on Twitter during the first week of January for “sending Mexican-made model of Chevy Cruze to U.S. car dealers-tax free across border.” Last week, Trump praised both Ford and Fiat Chrysler for announcing plans to invest in the U.S. and suggested that GM should follow.