General Motors has announced it will move manufacturing back to Michigan in the US.
The Detroit carmaker has vowed to invest $1 billion USD into manufacturing operations in a bid to create or retain 1500 jobs.
GM said it will move pick-up axle production from Mexico to Michigan to create a further 5000 more US jobs in other areas of its business in the next five years. It comes just three days before President-elect Donald Trump takes office.
The manufacturer said in-sourcing axles for its next-gen pick-up trucks, due in 2018, is expected to create 450 Michigan jobs.
GM CEO Mary Barra said in a statement, “As the US manufacturing base increases its competitiveness, we are able to further increase our investment… The US is our home market and we are committed to growth that is good for our employees, dealers and suppliers.”
Trump indirectly tweeted half an hour later, “With all of the jobs I am bringing back into the US (even before taking office), with all of the new auto plants coming back into our country and with the massive cost reductions I have negotiated on military purchases and more, I believe the people are seeing ‘big stuff’.”
Fiat Chrysler Automobiles CEO Sergio Merchionne also announced earlier this month it will invest $1 billion USD to
modernise its assembly plants in Michigan and Ohio by 2020 to create another 2000 jobs.
Ford Motor Company, the third leg of the Detroit ‘Big Three’ has also declared it too will invest its resources into US jobs by dropping plans to build a new plant in Mexico.
Instead the Blue Oval’s CEO Mark Fields said in early January it would inject the $700 million USD into its Flat Rock, Michigan factory in a ‘vote of confidence’ to Trump.
Following Ford’s announcement Trump tweeted, “Thank you… This is only the beginning – much more to follow.”