GM to invest $1B in U.S. after Trump scolding
But automaker says plans were ‘in the works for some time’
General Motors said Tuesday it will invest an additional $1 billion at several plants in the U.S., a move that comes just a week after President-elect Donald Trump’s latest tweet critical of the automaker’s Mexican car production.
The automaker also said it plans to bring thousands of information technology jobs back to the U.S. from overseas, creating a total of 7,000 new jobs in the U.S. when the IT jobs and new manufacturing jobs are combined.
The company simultaneously said the investments had been in the planning stages for some time — denying it was in response to pressure from Trump — while also saying “this was good timing ” to make the announcement.
The automaker said the $1 billion investment, along with the 1,500 new jobs that will be created or retained in the U.S., are in addition to $2.9 billion 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 pickups in the U.S., 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,” GM spokesman Pat Morrissey said. “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 directly 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 competitive- ness, 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 of the U.S. in recent years as it has strived to improve efficiency. Tuesday, GM said it plans to insource more than 6,000 IT jobs that were formerly outside the U.S. — a move that will create more than 5,000 new jobs in the U.S. over the next few years.
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 UAW.
“Today’s announcement continues GM investments that have emerged as a result of the 2015 national bargaining agreement,” UAW Vice President Cindy Estrada said in a statement. “We are pleased that there will be over $1 billion in new investment for current and future UAW GM members.”
General Motors also has been aggressively investing in Mexico and has had to lay off employees at plants in the U.S. as car sales have declined.
“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.” Pat Morrissey, GM spokesman