UPDATE2: GM to Invest Another $1 Billion in U.S. Operations
General Motors Co. confirms it will spend $1 billion on its U.S. factories over the next several years to produce previously approved models.
General Motors Co. confirms it will spend $1 billion on its U.S. factories over the next several years to produce previously approved models.
The new investment, which GM says it will detail later, adds to a $2.9 billion spending plan the company says it announced last year. The new investments will protect about 1,500 jobs in the U.S., according to the company.
GM notes that it previously relocated 6,000 IT jobs to the U.S. from positions overseas. The company also says a supplier of truck axles will relocate 100 jobs from Mexico to the U.S. to supply the carmaker’s next-generation fullsize pickup trucks.
GM plans to build the axles at its own components plant in Grand Rapids, Mich., sources tell The Detroit News. The newspaper reports that American Axle & Manufacturing Holdings Inc. confirms it is losing the work.
Carmakers have been scrambling this month to trumpet new U.S. investments or tout previously disclosed domestic spending plans. The announcements are in response to President-elect Donald Trump’s continuing demands that carmakers repatriate more jobs to the U.S.
A source tells Bloomberg News that GM moved up the timing of today’s announcement after Trump threatened two weeks ago to impose a 35% import tax on Chevrolet Cruze cars built in Mexico. GM already makes 98% of the Cruze models sold in the U.S. at its factory in Lordstown, Ohio.