GM to invest $2 billion in US auto plants

The Detroit auto company that was derided as "government motors" after accepting a bailout from Washington plans to invest $2 billion in its U.S. operations.

General Motors said the spending on 17 auto plants in eight states will create or save 4,000 jobs.

GM Chairman Dan Akerson made the announcement Tuesday at a transmission plant in Toledo, Ohio. He was flanked by Ohio Gov. John Kasich (R), Rep. Marcy Kaptur (D-Ohio) and Toledo Mayor Michael Bell.

"We are doing this because we are confident about demand for our vehicles and the economy," Akerson said, according to a statement released by GM. "This new investment is on top of $3.4 billion and more than 9,000 jobs that GM has added or saved since mid-2009."

The United Auto Workers heralded the news.

"The UAW's goal has been to return all laid-off workers to active status and see the company begin hiring again," UAW vice president Joe Ashton said in a statement. "These announcements will create and retain thousands of jobs and bring General Motors back to full employment of our hourly workforce."  

After the outgoing Bush administration bailed out GM and Chrysler in late 2008, President Obama assumed responsibility for getting the companies back on track. The president imposed conditions on the auto bailouts that he said stood in contrast to the loans given to Wall Street.

Obama's reelection campaign has already begun targeted pitches to factory-heavy midwestern states like Michigan and Ohio that credit Obama with "saving" the American auto industry.

That campaign theme will be heard more as the 2012 election approaches and Obama seeks to hold the unemployment-battered states he carried in 2008.

GM said Tuesday that its sales for the first four months of this year were up 24.8 over the same period in 2010, and the company has had five consecutive profitable quarters since emerging from bankruptcy.