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China / Across America

GM to invest $1b in US, repatriate some jobs

By Reuters (China Daily USA) Updated: 2017-01-18 11:00

General Motors Co on Tuesday confirmed it will invest an additional $1 billion in its US factories in 2017 and will move some parts production from Mexico to the US that was previously handled by a supplier.

The investments are in addition to the $2.9 billion the automaker announced last year, GM said.

GM and other automakers have been sharply criticized by Republican US President-elect Donald Trump for building vehicles in Mexico that are imported into the United States. Trump will be sworn in on Friday.

GM said the $1 billion investment will create or retain 1,500 jobs. The Detroit automaker said details of individual projects will be announced throughout the year.

"Thank you to General Motors and Walmart for starting the big jobs push back into the US," Trump tweeted, referring as well to Wal-Mart Stores Inc's announcement that it will hire 10,000 US workers in 2017 as part of a plan previously announced by the discount retailer.

GM also said it will begin work on bringing axle production for its next generation of full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 US jobs.

GM spokeswoman Joanne Krell said the automaker planned to add 7,000 new US jobs over the next two to three years. Krell said the decisions being announced "had been in the works for some time" but she added "the timing was good for us to share what we are doing."

The 7,000 figure includes the 450 jobs on axle production, 1,500 jobs tied to the $1 billion announcement and more than 5,000 new jobs tied to engineering, GM Financial and advanced technology.

GM in 2014 announced it was investing $5 billion in Mexico and doubling production capacity by 2018. GM said last week it had no plans to cancel Mexican investments despite Trump pressure.

GM said it had added about 6,000 US jobs, consisting of 4,000 hourly and 2,000 salaried positions, since the end of 2015 for a total American workforce of 103,000.

Since GM's bankruptcy restructuring in 2009, when it had 77,000 US employees, it has added more than 25,000 jobs as it boosted production, acquired an auto finance company and brought information technology work in house.

The United Auto Workers union said GM's new investments "have emerged as a result of the 2015" contract with the union.

GM shares slightly rose in midday trading, up 0.6 percent, or $0.23 per share, to $37.57.

Trump, who made bringing back manufacturing to the United States a large part of his successful election campaign, has been touting recent automaker investments in the United States.

Trump has been inaccurate in describing some US auto investments, wrongly saying last week that Fiat Chrysler was planning to build a new factory in the United States. The company announced it is investing $1 billion in two existing plants, adding 2,000 jobs.

Separately, Hyundai Motor Group said Tuesday in South Korea that it plans to boost US investment by 50 percent to $3.1 billion over five years and may build a new plant in the United States.

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