This morning General Motors is announcing a $1 billion investment into its U.S. manufacturing operations. Details of the $1 billion will trickle out throughout the year, but the company is outlining some of the investment now.
One of the projects detailed in the announcement is a plan for GM to insource some axle manufacturing for the company’s next-generation full-size trucks and SUVs in Michigan. GM claims the work is coming back to the U.S. from Mexico and will create 450 new jobs.
Today’s axles are produced by supplier American Axle. According to reports from American Axle, GM has only awarded the company part of the business associated with its next-generation full-size trucks and SUVs. Apparently the partial award is due to GM insourcing the rest of axle business.
“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.”
GM also claims that the company has created 25,000 jobs in the U.S. and subsequently added $3 billion in annual payroll just in the last four years. Of course that count likely doesn’t include job reductions, such as recent announcements to shed employees at some car assembly plants in the U.S. due to sagging car demand.
Further details of the $1 billion investment or how and where the 7,000 new jobs are going to be created are not yet known.
As part of the announcement, GM also stated it is working with suppliers to form “supplier parks” around more of its U.S. assembly plants. The plan creates better communication and lower logistics costs, according to the company.
Today’s announcement timing is coming just weeks after President-elect Donald Trump attacked GM on Twitter for allegedly moving production of the Chevrolet Cruze from Ohio to Mexico (which was only partially true). The President-elect will likely be happy to see today’s announcement.