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GM announces $1 billion U.S. investment plan

Jon Street Jan 17, 2017 10:14 am

The General Motors world headquarters building is shown Sept. 17, 2015 in Detroit, Michigan. (Bill Pugliano/Getty Images)

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General Motors has announced that it is investing an additional $1 billion in manufacturing infrastructure in the U.S., creating as many as 7,000 new jobs in the process.

The company made the announcement Tuesday morning, just weeks after President-elect Donald Trump threatened the automaker with a “big border tax” if it continued to produce its popular Chevrolet Cruze model in Mexico. In a statement to NBC News Monday night, a GM representative insisted the company’s most recent action had nothing to do with Trump’s comments.

“These are investments and decisions that are good for the business and have been in the works for some time,” the GM representative said.

In a statement published Tuesday morning to the automaker’s website, GM chairman and CEO Mary Barra added:

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. 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.

According to NBC News, however, GM sold more Mexican-made vehicles in the U.S. than any other American automaker in 2016. The Michigan-based company reportedly imported more than 400,000 vehicles in Mexico last year. This, despite the fact that in 2008-2009, GM accepted more than $50 billion in bailout funds from American taxpayers.

Tuesday’s announcement comes just days after Ford Motor Company announced plans to keep 700 jobs at its plant in Flat Rock, Michigan, instead of moving them to Mexico. Ford CEO Mark Fields said the decision was not made as a result of a deal with Trump, even though Ford’s announcement came hours after the president-elect’s warning to GM to manufacture Chevy Cruze models in the U.S. or risk paying a “border tax.”