GM to invest $1B in US after Trump attack

GM to invest $1B in US after Trump attack
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General Motors Co. announced Tuesday that it plans to invest an additional $1 billion in the United States, following criticism from President-elect Donald TrumpDonald John TrumpDemocrats blast Trump for commuting Roger Stone: 'The most corrupt president in history' Trump confirms 2018 US cyberattack on Russian troll farm Trump tweets his support for Goya Foods amid boycott MORE for producing cars in Mexico and sending them back to the U.S.

The investment will be on top of the $2.9 billion that the automaker already announced in 2016.

GM said in a press release that it will add or keep a total of 7,000 jobs as a result of the investments over the next few years, with details of individual projects expected to be announced throughout the year.


The company will also begin to shift some of its axle production for its next-generation, full-size pickup trucks from Mexico to operations in Michigan — a move that will create 450 U.S. 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 in a statement. “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 said the announcement is part of “an increased focus on overall efficiency over the last four years.” But the move also comes in the wake of Trump ratcheting up public pressure on U.S. automakers for investments in Mexico.

Trump blasted GM on Twitter earlier this month, threatening a "big border tax" on the automaker’s models made in Mexico.

The company announced last June it would build the Chevrolet Cruze model in Mexico and sell them in the U.S. for the first time due to high demand. GM revealed the change after its plant in Lordstown, Ohio struggled to meet consumer demands.

GM’s stock dropped by about 1 percent, roughly a quarter billion dollars in value, after Trump's tweet.

Other automakers that Trump has targeted have also announced new investments in the U.S. in recent weeks.

Ford Motor Co. canceled plans to build a new manufacturing plant in Mexico and instead is investing $700 million in Michigan, while Fiat Chrysler announced it will create 2,000 jobs and invest $1 billion by 2020 in two factories in Michigan and Ohio.

“I hope that General Motors will be following. And I think they will be,” Trump said at his press conference last week.