GM is planning to invest $1 billion in U.S. factories
General Motors Co. plans to invest $1 billion in U.S. factories and add thousands of new white-collar jobs, measures that have been in the works for years but were announced Tuesday after criticism from President-elect Donald Trump.
In all, the Detroit automaker said it will create or keep 7,000 jobs in the next few years, including about 2,000 at factories. An additional 5,000 positions will be created at its auto financing arm and to develop advanced technology, electric and autonomous vehicles and information technology.
Trump has demanded that the auto industry build more cars in the U.S. GM said the actions announced Tuesday have been in the works since well before the election, although spokesman Patrick Morrissey acknowledged that it’s a good time to announce new jobs in the U.S. Trump will be sworn in Friday as the nation’s 45th president.
“There’s no question there is an emphasis on job creation in the U.S. right now,” Morrissey said. “This is good timing for us to share what we are doing.”
He said most of the new positions would be in Michigan, with exact locations to be revealed later. The longplanned new white-collar jobs are to come in the next two or three years.
GM said the factory investment will create or keep around 1,500 jobs at unspecified factories. In addition, 450 pickup-truck axle-making jobs will be moved to Michigan from Mexico. GM also said an unidentified firm that will make parts for the next-generation pickups will move 100 jobs to Michigan from Mexico.
Trump has attacked GM and other automakers for building vehicles in Mexico and shipping them to the U.S. He has threatened to impose a 35% border tax on automotive imports from Mexico.
Ford Motor Co., Hyundai Motor Co. and Fiat Chrysler Automobiles U.S. have also recently announced large investments in their U.S. operations and the creation of new jobs. It’s a pattern of auto companies making routine jobs announcements to head off criticism from Trump, who made keeping U.S. factory jobs a key element of his campaign.
“General Motors’ announcement today is mostly theater to play in the news cycle created by Presidentelect Trump’s tweets,” said Michelle Krebs, an auto industry analyst for Kelley Blue Book.