General Motors said it will invest $1 billion across a number of U.S. plants that build vehicles as well as components, a move that will retain current jobs while adding some positions over the year.
As part of an ongoing necessity for companies to highlight moves that affect Mexican operations, GM said it will make axles for its next-generation full-size pickup trucks in the U.S., bringing to Michigan some work currently done in Mexico. The move will create 450 axle jobs in the state. GM also plans to add about 5,000 salaried jobs in the U.S. over the next few years.
In addition, GM is confirming that a supplier has committed to make components for GM’s next-generation full-size pickup 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.”
Last year GM announced $2.9 billion in investments, bringing the total to more than $21 billion spent on U.S. operations since 2009. About 25,000 jobs have been created over the last four years in the U.S. while the automaker has cut 15,000 jobs outside the country and moved many of them here as part of its overall global strategy. The company moved from 90 percent of its IT work being outsourced to an insourced U.S.-based model.
Like many high-profile Mexico-related announcements recently, including investments by Ford and FCA, the moves are largely following business plans and strategies formulated long before President-elect Donald Trump came on the political scene. But it has become necessary to shine a spotlight on moves under the incoming regime. And in some cases, plans have been adjusted to avoid falling out of favor with the incoming Administration.
GM’s new investments cover multiple new vehicle, advanced technology and component projects, affecting 1,500 jobs, most of which already exist. Details of individual projects will be announced throughout the year.
GM has created 25,000 jobs in the U.S. − approximately 19,000 engineering, IT, and professional jobs and 6,000 hourly manufacturing jobs – and added nearly $3 billion in annual wages and benefits to the U.S. economy over that period. At the same time, GM reduced more than 15,000 positions outside the U.S., bringing most of those jobs to America.
“We will continue our commitment to driving a more efficient business,” said Barra, “as shown by our in-sourcing of more than 6,000 IT jobs that were formerly outside the U.S., streamlining our engineering operations from seven to three, with the core engineering center being in Warren, Michigan, and building on our momentum at GM Financial and in advanced technologies. These moves, and others, are expected to result in more than 5,000 new jobs in the U.S. over the next few years.”
GM encourages its suppliers to locate near its U.S. facilities — a longtime strategy used by most in the industry because of the savings it provides in logistics and transportation. GM now has supplier parks at its Fairfax Assembly Plant in Kansas; Spring Hill Assembly Plant in Tennessee; Fort Wayne Assembly Plant in Indiana; and Lordstown Assembly Plant in Ohio, with more to come.
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