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GM pressured by Trump to invest $1 billion in US

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GM pressured by Trump to invest $1 billion in US

GM pressured by Trump to invest $1 billion in US

On Tuesday, General Motors said it will invest an additional $1 billion at several plants in the US, a move that comes just a week after President-elect Donald Trump’s latest tweet critical of the company’s car production in Mexico. GM plans to bring thousands of information technology jobs back to the US from overseas, which will create a total of 7,000 new jobs when the IT jobs and new manufacturing jobs are combined.

Simultaneously, the company added that the investments had been in the planning stages for some time, and essentially denied that it was in response to pressure from Trump — while also saying “this was good timing” to make the announcement.

According to GM, the $1 billion investment, along with the 1,500 new jobs that will be created or retained in the US are in addition to $2.9 billion announced in 2016 and more than $21 billion it has invested in its US operations since 2009.

The Wall Street Journal discussed the automaker’s decision below:

GM also promised to begin work on bringing axle production for its next generation full-size pickup trucks in the US, including work previously done in Mexico, to plants in Michigan, which will create 450 jobs in the US.

Spokesperson for the company said today Pat Morrissey: “All of the decisions behind today’s announcement are good business decisions and they have been in the works for some time. There’s no question there is an emphasis on job creation in the US right now. This was good timing for us to share what we are doing, including our ongoing commitment and track record for US investment over the last several years.”

This morning, Trump was quick take credit for the investment on Twitter.

“With all of the jobs I am bringing back into the US (even before taking office), with all of the new auto plants coming back into our….country and with the massive cost reductions I have negotiated on military purchases and more, I believe the people are seeing “big stuff.””

“As the US 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,”  GM CEO Mary Barra said in a statement. “The US 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.”

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