General Motors says to invest additional $1 billion in U.S.

Tue Jan 17, 2017 1:16pm EST
 
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By David Shepardson

WASHINGTON (Reuters) - General Motors Co (GM.N: Quote) on Tuesday confirmed it will invest an additional $1 billion in its U.S. factories in 2017 and will move some parts production from Mexico to the United States that was previously handled by a supplier.

The investments are in addition to the $2.9 billion the automaker announced last year, GM said. (bit.ly/2iJ9xw0)

GM and other automakers have been sharply criticized by Republican U.S. President-elect Donald Trump for building vehicles in Mexico that are imported into the United States. Trump will be sworn in on Friday.

GM said the $1 billion investment will create or retain 1,500 jobs. The Detroit automaker said details of individual projects will be announced throughout the year.

"Thank you to General Motors and Walmart for starting the big jobs push back into the U.S.," Trump tweeted, referring as well to Wal-Mart Stores Inc's (WMT.N: Quote) announcement that it will hire 10,000 U.S. workers in 2017 as part of a plan previously announced by the discount retailer.

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

The part was previously built by American Axle & Manufacturing Holdings Inc (AXL.N: Quote). American Axle did not immediately respond to a request for comment.

GM spokeswoman Joanne Krell said the automaker planned to add 7,000 new U.S. jobs over the next two to three years. Krell said the decisions being announced "had been in the works for some time" but she added "the timing was good for us to share what we are doing."   Continued...

 
The GM logo is seen at the General Motors Warren Transmission Operations Plant in Warren, Michigan October 26, 2015. Photo taken October 26.   REUTERS/Rebecca Cook