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General Motors to create 7000 US jobs with $1bn investment

Published 18 January 2017

General Motors (GM) said it will invest $1bn in the US manufacturing operations, a move that will create 7,000 jobs.

The latest investment follows the company’s $2.9bn investment in 2016 and more than $21bn of investment made in the country since 2009.

The money will be used for multiple new vehicle, advanced technology and component projects.

GM said that about 1500 new and retained jobs are tied with the new investments.

One of the operations to be taken up in the country will include axle production for the next generation full-size pickup trucks, which is being planned to take place in the state of Michigan. Earlier the production of the axles used to take place in Mexico.

The operations in the US are expected to create about 450 local jobs.

Apart from this, the company is also poised to strengthen its supplier base in the US.

The company claims to have been executing strategy in creating supplier parks adjacent to its facilities in the country including the ones at GM’s Fairfax Assembly Plant in Kansas, Spring Hill Assembly Plant in Tennessee, Fort Wayne Assembly Plant in Indiana and Lordstown Assembly Plant in Ohio.

GM chairman and CEO Mary Barra said: “As the US 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.

“The US 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.”

Barra said: “We will continue our commitment to driving a more efficient business.

“As shown by our insourcing of more than 6,000 IT jobs that were formerly outside the US, 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.”

General Motors claims to have created about 25,000 jobs in the country in the past four years. These include 19,000 engineering, IT and professional jobs and 6,000 hourly manufacturing jobs. These jobs have added about $3bn in annual wages and other benefits to the economy.

It also claims to have moved about 15,000 jobs back to the US and has also reduced outsourcing of IT work by 90%.

South Korean automaker, Hyundai Motor and its affiliate Kia Motors have also stated that they will invest up to $3.1bn in the US for the next five years.

Bloomberg reported that the money will be used to build a new factory and could manufacture Genesis vehicles and an SUV specific for the country.


Image: GM CEO and Chairman Mary Barra. Photo: Courtesy of General Motors.