General Motors announces plans to invest $1 billion in USA factories

The 2017 Chevy Cruze Hatchback is revealedĀ at the 2016 North American International Auto Show in January 2016. Trump has called on GM to stop building the car in Mexico
WSJ: GM to Invest $1 Billion in US Factories

18 January, 2017

Within a half-hour of GM's announcement Tuesday, Mr. Trump posted a Twitter message claiming credit for the auto industry's recent string of US manufacturing commitments.

"The reason that we are not building the new plant, the primary reason, is just demand has gone down for small cars", Fields said. The investments are on top of a further US$2.9 billion investment announced past year.

Barra noted that the company brought back more than 6,000 IT jobs that were previously outside of the USA, and streamlined its engineering operations from seven to three facilities.

GM encourages its suppliers to locate near its USA facilities - a longtime strategy used by most in the industry because of the savings it provides in logistics and transportation. The group is considering building a new factory in the U.S. and may produce Hyundai Motor's upscale Genesis vehicles and a US-specific SUV in the country, said the executive, who also oversees the strategic planning for Kia. Kia opened a new $3 billion, 200,000 unit-a-year production line in Mexico two months before the USA presidential election.

General Motors has announced a $1 billion investment into its USA manufacturing facilities just a week after being called out by President-elect Donald Trump. Conversely, Trump has called out GM and other carmakers for producing vehicles in Mexico and has suggested they will pay a "big border tax" for shipping Mexican-made vehicles to the United States.

GM declined to comment on the reports it will be adding jobs.

Scott Paul, president of the Alliance for American Manufacturing, said there's "no question that businesses realize there's an upside to announcing new jobs and investments in America right now".

The company did not mention the local GM Assembly Plant in Lordstown where more than 1,200 jobs are to be cut next week as the plant's third shift is eliminated.

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The 7000 figure includes the 450 jobs on axle production, 1500 jobs tied to the US$1 billion announcement and more than 5000 new jobs tied to engineering, GM Financial and advanced technology.

"I hope that General Motors will be following and I think they will be", Trump said Wednesday at Trump Tower in Manhattan.

GM said the factory investment has been in the works for years and will create or keep around 1,500 jobs at unspecified factories.

The moves have been in the works for some time and are not being made in response to Trump's criticism, one of the people familiar with the announcement said, but the automaker is going public with them now to show its commitment to the U.S.

"The U.S. market is strategically important for us", he said. The auto maker imports more vehicles from Mexico than does Ford and in recent months has announced plans to lay off more than 3,000 factory workers in MI and OH, citing waning demand for passenger cars.

On Jan. 8, Fiat Chrysler said it would invest $1 billion at plants in Warren and Toledo so it can build three new Jeep models - the Jeep Wagoneer, Jeep Grand Wagoneer and Jeep Pickup.

The automaker has been under pressure from President-elect Donald Trump to end manufacturing operations in Mexico or face a "big border tax" on parts and vehicles imported to the United States. BMW sees " no reason" to change plans, said Peter Schwarzenbauer, who heads the automaker's Mini and Rolls-Royce brands and its car-sharing business. However, Ford still plans to move production of the Ford Focus from its plant in Wayne to its plant in Hermosillo, Mexico.

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