GM announces $1B investment affecting 1,500 jobs
DETROIT -- General Motors (GM) on Tuesday morning announced a $1 billion investment in its factories that will create or keep around 1,500 jobs.
The story was first reported by The Associated Press, citing a person briefed on the matter. The investment is part of the normal process of equipping factories to build new models, and it’s been planned for months, the person told the AP. The person didn’t want to be identified because the announcement hasn’t been made yet.
Multiple factories will get part of the money, but GM doesn’t plan to state where the new jobs will go, according to the person. The company plans to use the announcement to tout both blue-collar and white-collar U.S. jobs it has created in recent years, the person said.
The company announced it will begin to bring axle production work to its operations in Michigan, which includes jobs that were previously done in Mexico. In total, GM said that 7,000 U.S. jobs would be created or retained over the next several years.
The announcement comes after President-elect Trump has attacked GM and other automakers for building vehicles in Mexico and shipping them to the U.S.
Separately, Hyundai Motor Group said Tuesday it would significantly increase its investment in the U.S. while Mr. Trump is president and is considering building a new U.S. factory. But the South Korean automaker denies pressure from the incoming Trump administration is behind its thinking.
Earlier this month, Mr. Trump threatened on Twitter to tax GM for importing the compact Chevrolet Cruze. While GM builds hatchback Cruzes in Mexico, most Cruze sales are Ohio-built sedans.
On the eve of the Detroit Auto Show press days last week, GM CEO Mary Barra said the company has no plans to change where it produces small cars due to Mr. Trump’s threats.
Barra said the auto business has long lead times for where it produces vehicles, with decisions made two to four years in advance.
Barra, who is part of a Trump economic advisory group, said it’s too early to talk about a possible tariff. She said the company has more in common with Nr. Trump’s goals on trade and jobs than differences.
