Canadian Manufacturing

GM to invest US$1B across its U.S. supply chain

The Detroit automaker will also look at reshoring axle production for pickup trucks, including work previously done in Mexico



A worker at GM’s Flint, Mich. engine plant, where the automaker builds its Ecotec small engines.

DETROIT—General Motors (GM) will make a $1 billion investment in its factories.

In all, the Detroit automaker said it will create or keep 7,000 jobs in the next few years, including about 2,000 at its factories. Another 5,000 new positions will be created at its auto financing arm and to develop advanced technology, electric and autonomous vehicles and information technology.

The company wouldn’t release details on where all the jobs will go, saying that will be revealed during the year. But most of the new positions would be in Michigan, spokesman Patrick Morrissey said. The long-planned new white-collar jobs will come in the next two or three years.

GM emphasized that the jobs are good business decisions that have been under discussion for months or even years, but Morrissey said it was a good time to make the announcement.

“There’s no question there is an emphasis on job creation in the U.S. right now,” he said. “This is good timing for us to share what we are doing, including our ongoing commitment and track record for U.S. investments over the last several years.”

The Detroit automaker also said that it will begin work on insourcing axle production for its next generation full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 U.S. jobs.

The company also confirmed that a supplier will make components for GM’s next-generation full size pick-up trucks in Michigan, moving 100 supplier jobs from Mexico to the U.S.

“As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners,” said GM Chairman and CEO Mary Barra. “The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value.”

President-elect Donald Trump has attacked GM and other automakers for building vehicles in Mexico and shipping them to the U.S.

Earlier this month, 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, Barra said the company has no plans to change where it produces small cars due to Trump’s threats.

Barra said the auto business has long lead times for where it produces vehicles, with decisions are made two to four years ahead.

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 Trump’s goals on trade and jobs than differences.

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