General Motors has decided to invest more than $1 billion back into the U.S. economy in 2017. Additionally, they’re looking to pull back infrastructure that presently sits in Mexico.
General Motors indicated that with the $1B investment, 1,500 jobs will be created. GM separately announced an additional $2.9B investment in 2016.
While the plan for the jobs is not totally clear yet, it seems like the state of Michigan will benefit from the jobs boost.
GM CEO Mary Barra said the move was good for GM and good for America:
“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.”
President-elect Donald Trump also praised GM, as well as Wal-Mart for considering the U.S. for their jobs. He tweeted, “Thank you to General Motors and Walmart for starting the big jobs push back into the U.S.”
GM’s announcement of bringing jobs back to the U.S. comes two weeks after Donald Trump bashed them over Twitter for creating cars in Mexico and then importing them to the United States. On January 3rd, Trump tweeted “General Motors is sending Mexican made models of Chevy Cruze to U.S. car dealers tax free across border. Make in U.S.A. or pay big border tax!”
Within days of that that tweet, rival car company Ford Motors announced a pullback of a potential investment in Mexico, and will put $750 million back into Michigan as well.
According to Reuter’s, other car companies are looking to be more American-centric as well.
Separately, Hyundai Motor Group said Tuesday in South Korea that it plans to boost U.S. investment by 50 percent to $3.1 billion over five years and may build a new plant in the United States.
Hyundai Motor Co (005380.KS) and Kia Motors Corp (000270.KS), which make up the Hyundai Motor Group, have not been directly criticized by Trump but they may have felt vulnerable because among major brands, they have one of the lowest ratios of cars built in the United States to cars sold.
One of Trump’s biggest campaign platforms was to Make America Great Again by bringing jobs back from overseas and keeping jobs here in the first place. He promised big taxes for companies that did not comply. Trump is now crediting himself with the job creation, but many CEO’s are saying they are doing what’s best for their companies.