AP source: GM to announce $1B factory investment, new jobs
General Motors will announce a $1 billion investment in its factories that will create or keep around 1,000 jobs, a person briefed on the matter said Monday.
The Detroit automaker will make the announcement Tuesday morning. The investment is part of the normal process of equipping factories to build new models, and it’s been planned for months, the person told The Associated Press. The person didn’t want to be identified because the announcement hasn’t been made yet.
Multiple factories will get part of the money, but GM does not plan to state where the new jobs will go, according to the person. The company plans to use the announcement to tout both blue-collar and white-collar U.S. jobs it has created in recent years, the person said.
The announcement comes after President-elect Donald Trump has attacked GM and other automakers for building vehicles in Mexico and shipping them to the U.S.
Earlier this month, Trump threatened on Twitter to tax GM for importing the compact Chevrolet Cruze. While GM builds hatchback Cruzes in Mexico, most Cruze sales are Ohio-built sedans.
On the eve of the Detroit auto show press days last week, GM CEO Mary Barra said the company has no plans to change where it produces small cars due to Trump’s threats.
Barra said the auto business has long lead times for where it produces vehicles, with decisions are made two to four years ahead.
Barra, who is part of a Trump economic advisory group, said it’s too early to talk about a possible tariff. She said the company has more in common with Trump’s goals on trade and jobs than differences.
GM, Hyundai Promise U.S. Investments: A Billion Here And There, And Pretty Soon You're Talking Real Jobs
General Motors announced Tuesday it will add 7,000 new jobs over the next two to three years in the U.S., welcome news for American workers. A $1 billion investment is directly tied to "creating or retaining 1,500" jobs, which means that while there won't be 1,500 all new jobs created, there also won't be jobs lost, something we heard a lot about back in the darkest days of 2008 and 2009. GM said over 5,000 new jobs will be added at GM Financial, and in advanced technology and engineering.
In addition, GM also announced the axles for the next generation of Chevy Silverado and GMC Sierra pickup trucks will be brought back to Michigan from Mexico, creating upwards of 450 jobs.
“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.”
The company said the investment decisions were long in the planning and unrelated to pressure from President-elect Donald Trump, who has been calling out automakers for producing cars in Mexico. Trump has called for a 35% tariff on Mexican-made vehicles.
Earlier Tuesday morning, Hyundai Motor Group, parent company of Hyundai, Kia, and Genesis brands, said it plans to invest $3.1 billion over five years, including possibly building another new plant in the U.S. Like GM, Hyundai distanced itself from any political influence, stating the investment was based on anticipated demand in the U.S. market for "high-margin, high-demand models" including SUVs and the newly launched premium brand, Genesis. While Hyundai did not specify how many new jobs it would create, it did say the focus would be similar to GM's, with emphasis on researching self-driving cars, artificial intelligence and other future technologies.
While a billion dollars is a lot of money to you and me, these numbers are typical of production investments a company such as General Motors and Hyundai would make. But that doesn't mean it's not important. The AutoAlliance estimates that every automotive job creates nearly 7 new jobs in the community, including retail and trades jobs, and of course every new car sold generates thousands in sales taxes for states. Regardless of the timing, the inauguration, the motivation, or other exogenous factors, these will be real jobs for real Americans and will have tangible, positive impact on the individuals and communities being employed.
Trump touts new Wal-Mart, GM and Bayer-Monsanto investments
President-elect Donald Trump Tuesday trumpeted a trio of major company announcements pledging additional investments in the United States as proof his America-first stance on the economy is already producing results.
Wal-Mart Stores, General Motors as well as Bayer and Monsanto, which are in the process of merging, unveiled plans for job creations, new stores, research and assembly plants.
"Thank you to General Motors and Walmart for starting the big jobs push back into the US!" Trump tweeted in response.
Since November, the incoming president has used the bully pulpit of his impending presidency to attack major companies, accusing defense contractors of overcharging for planes and threatening manufacturers with stiff import duties if they sell foreign-made goods on the US market.
In succession, business leaders appear to have answered Trump's call, pledging new US investments and domestic job creation.
- Wal-Mart Stores -
The mega retailer announced Tuesday it would invest $6.8 billion in the United States -- opening, expanding or relocating 59 Walmart and Sam's Club locations and creating 10,000 jobs in stores and online sales.
The company also pledged to spend $250 billion on products made, grown, assembled or sourced in the United States.
Shares in the company were up 2.3 percent toward 1900 GMT.
- General Motors -
The US auto giant said it would invest an additional $1 billion inside the United States on top of $2.6 billion already announced last year and would create 5,000 jobs in the coming years.
The announced move included 1,500 "retained" positions tied to investments in new vehicle and advanced technologies as well as 450 jobs returned from Mexico.
GM's statement came a week after a business-as-usual message from GM CEO Mary Barra, who told reporters at the Detroit Auto Show that the company would press ahead with plans to manufacture the latest version of its GMC Terrain SUV in Mexico.
Trump this month singled out GM for criticism on Twitter, threatening the company with import duties for selling a Mexican-made version of the Chevrolet Cruze on the US market. About two percent of all Cruze cars sold in the US are Mexican-made, according to GM.
The company's share price had risen 0.2 percent in New York toward 1900 GMT.
- Bayer-Monsanto -
The German chemicals and pharmaceutical giant Bayer and the US agribusiness firm Monsanto, which Bayer is in the process of acquiring, announced about $8 billion in investment in agricultural research in the United States.
The announcement followed last week's meeting between Trump, Bayer CEO Werner Baumann and Monsanto chief Hugh Grant, which a Bayer spokesman described as "productive."
A Trump spokesman said the investments were coming "because the president-elect's focus on creating better business climate here in the United States, which has already increased consumer and small-business confidence since the election."
The companies, however, did not confirm Trump's statement that they would create at least 3,000 "new US high-tech jobs" or that they would commit to retaining the company's "9,000 plus US workforce."
In New York, Monsanto's shares had gained 0.5 percent by 1900 GMT.
The Detroit automaker will make the announcement Tuesday morning. The investment is part of the normal process of equipping factories to build new models, and it’s been planned for months, the person told The Associated Press. The person didn’t want to be identified because the announcement hasn’t been made yet.
Multiple factories will get part of the money, but GM does not plan to state where the new jobs will go, according to the person. The company plans to use the announcement to tout both blue-collar and white-collar U.S. jobs it has created in recent years, the person said.
The announcement comes after President-elect Donald Trump has attacked GM and other automakers for building vehicles in Mexico and shipping them to the U.S.
Earlier this month, Trump threatened on Twitter to tax GM for importing the compact Chevrolet Cruze. While GM builds hatchback Cruzes in Mexico, most Cruze sales are Ohio-built sedans.
On the eve of the Detroit auto show press days last week, GM CEO Mary Barra said the company has no plans to change where it produces small cars due to Trump’s threats.
Barra said the auto business has long lead times for where it produces vehicles, with decisions are made two to four years ahead.
Barra, who is part of a Trump economic advisory group, said it’s too early to talk about a possible tariff. She said the company has more in common with Trump’s goals on trade and jobs than differences.
 |
| Yu Jun, General Manager GAC Motor talks before the reveal of the 2018 GS7 during the 2017 North American International Auto Show at Cobo Center in Detroit on Monday, Jan. 9, 2017. (Photo: Romain Blanquart, Detroit Free Press) |
GM, Hyundai Promise U.S. Investments: A Billion Here And There, And Pretty Soon You're Talking Real Jobs
General Motors announced Tuesday it will add 7,000 new jobs over the next two to three years in the U.S., welcome news for American workers. A $1 billion investment is directly tied to "creating or retaining 1,500" jobs, which means that while there won't be 1,500 all new jobs created, there also won't be jobs lost, something we heard a lot about back in the darkest days of 2008 and 2009. GM said over 5,000 new jobs will be added at GM Financial, and in advanced technology and engineering.
In addition, GM also announced the axles for the next generation of Chevy Silverado and GMC Sierra pickup trucks will be brought back to Michigan from Mexico, creating upwards of 450 jobs.
“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.”
The company said the investment decisions were long in the planning and unrelated to pressure from President-elect Donald Trump, who has been calling out automakers for producing cars in Mexico. Trump has called for a 35% tariff on Mexican-made vehicles.
Earlier Tuesday morning, Hyundai Motor Group, parent company of Hyundai, Kia, and Genesis brands, said it plans to invest $3.1 billion over five years, including possibly building another new plant in the U.S. Like GM, Hyundai distanced itself from any political influence, stating the investment was based on anticipated demand in the U.S. market for "high-margin, high-demand models" including SUVs and the newly launched premium brand, Genesis. While Hyundai did not specify how many new jobs it would create, it did say the focus would be similar to GM's, with emphasis on researching self-driving cars, artificial intelligence and other future technologies.
While a billion dollars is a lot of money to you and me, these numbers are typical of production investments a company such as General Motors and Hyundai would make. But that doesn't mean it's not important. The AutoAlliance estimates that every automotive job creates nearly 7 new jobs in the community, including retail and trades jobs, and of course every new car sold generates thousands in sales taxes for states. Regardless of the timing, the inauguration, the motivation, or other exogenous factors, these will be real jobs for real Americans and will have tangible, positive impact on the individuals and communities being employed.
Trump touts new Wal-Mart, GM and Bayer-Monsanto investments
President-elect Donald Trump Tuesday trumpeted a trio of major company announcements pledging additional investments in the United States as proof his America-first stance on the economy is already producing results.
Wal-Mart Stores, General Motors as well as Bayer and Monsanto, which are in the process of merging, unveiled plans for job creations, new stores, research and assembly plants.
"Thank you to General Motors and Walmart for starting the big jobs push back into the US!" Trump tweeted in response.
Since November, the incoming president has used the bully pulpit of his impending presidency to attack major companies, accusing defense contractors of overcharging for planes and threatening manufacturers with stiff import duties if they sell foreign-made goods on the US market.
In succession, business leaders appear to have answered Trump's call, pledging new US investments and domestic job creation.
- Wal-Mart Stores -
The mega retailer announced Tuesday it would invest $6.8 billion in the United States -- opening, expanding or relocating 59 Walmart and Sam's Club locations and creating 10,000 jobs in stores and online sales.
The company also pledged to spend $250 billion on products made, grown, assembled or sourced in the United States.
Shares in the company were up 2.3 percent toward 1900 GMT.
- General Motors -
The US auto giant said it would invest an additional $1 billion inside the United States on top of $2.6 billion already announced last year and would create 5,000 jobs in the coming years.
The announced move included 1,500 "retained" positions tied to investments in new vehicle and advanced technologies as well as 450 jobs returned from Mexico.
GM's statement came a week after a business-as-usual message from GM CEO Mary Barra, who told reporters at the Detroit Auto Show that the company would press ahead with plans to manufacture the latest version of its GMC Terrain SUV in Mexico.
Trump this month singled out GM for criticism on Twitter, threatening the company with import duties for selling a Mexican-made version of the Chevrolet Cruze on the US market. About two percent of all Cruze cars sold in the US are Mexican-made, according to GM.
The company's share price had risen 0.2 percent in New York toward 1900 GMT.
- Bayer-Monsanto -
The German chemicals and pharmaceutical giant Bayer and the US agribusiness firm Monsanto, which Bayer is in the process of acquiring, announced about $8 billion in investment in agricultural research in the United States.
The announcement followed last week's meeting between Trump, Bayer CEO Werner Baumann and Monsanto chief Hugh Grant, which a Bayer spokesman described as "productive."
A Trump spokesman said the investments were coming "because the president-elect's focus on creating better business climate here in the United States, which has already increased consumer and small-business confidence since the election."
The companies, however, did not confirm Trump's statement that they would create at least 3,000 "new US high-tech jobs" or that they would commit to retaining the company's "9,000 plus US workforce."
In New York, Monsanto's shares had gained 0.5 percent by 1900 GMT.
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