GM Will Invest Over $1 Billion In New US Factories, Create More Than 1,000 Jobs

Tyler Durden's picture

Not a week seems to pass without some an automaker, foreign or domestic, making an unexpected round of concessions when it comes to Trump's ambitions to "Make it in the US."

And so, days after first Ford, then Fiat Chrysler announced major expansion plans in the US (to the partial detriment of Mexico) the latest automaker to respond to Trump's Twitter criticism is General Motors, which according to the WSJ, will announce this week plans to invest at least $1 billion across several U.S. factories "a move aimed at underlining its commitment to U.S. manufacturing jobs in the wake of President-elect Donald Trump’s criticism of the auto maker’s imports from Mexico."

The company will also announce that it will create more than 1,000 new jobs stemming from the investment but doesn’t plan to specify which of its factories are in line for more work.

The move comes days after Mr. Trump publicly ratcheted up pressure on the nation’s largest auto maker. During his press conference last week, the president-elect thanked Ford Motor Co. and Fiat Chrysler Automobiles for recently announced U.S. investment plans that are expected to create a combined 2,700 jobs.

He then turned up the heat on GM to follow suit. “I hope that General Motors will be following. And I think they will be,” Mr. Trump said.

They did indeed, even if GM's response was largely predictable. Recall that GM CEO Mary Barro was appointed to Trump's Strategic and Policy Forum, which as a reminder "is composed of some of America’s most highly respected and successful business leaders, will be called upon to meet with the President frequently to share their specific experience and knowledge as the President implements his plan to bring back jobs and Make America Great Again."

It would look confusing if one of Trump's own economic policy advisors looked the other way when practicing what Trump is preaching.

On January 3, Trump launched the opening salvo in this brief but productive "negotiation", when he tweeted that “General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!.”

GM picked the middle option: to invest money in the US, creating new jobs.

In keeping with the narrative proferred by other carmakers, in an interview with the WSJ, GM general counsel Craig Glidden declined to confirm specifics of the announcement but said any investment the company might disclose has been long planned and isn’t a response to pressure from Mr. Trump.

“This is something we’ve been undertaking for some period of time,” he said. “It’s really getting our story told in a way that is I think complete and fulsome.”

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OfAllElaboratePlans's picture

Somewhere I feel a "tax" coming down the pipe to hit me in my already tattered wallet

Looney's picture

 

Trump hasn’t even gone to the mattresses, but the bitches are folding like lawn chairs. ;-)

Looney

Shocker's picture

Keep the winning going... Lets keep/bring jobs back to US

Job Winning News - http://www.dailyjobfix.com

-

FreezeThese's picture

And who knew it would come to subtweets ... think I speak for all of America when I say smh

BabaLooey's picture

Actually, you bleat for the sheeple.

But don't any of us stop you.

You shart your stupidity one post at a time.

LowerSlowerDelaware_LSD's picture

This is what the rioters will be "protesting" - Rioting against more jobs.

To keep the companies competitive Trump will need to cut the business strangling regulations and taxes.

toady's picture

1B = 1K jobs? Not a very good ROI....

Cynicles's picture

write offs, that is, tax incentives etc.

worst case the Gov [the citizenry] bails them out...again 

hibou-Owl's picture

What would giving 1 million per unemployed (1000) do for the local economy, and then import some decent japanese cars for a profit.

Job done.

BabaLooey's picture

Indeed L.S.D......

Dovetailing off "what we will be talking about in one year" posting....

My guess is that one year from now, many of us will be ...

FUCKING SHAMING....

the asshats that are crying, sharting, pooping about this "facist" horseshit, and roadblocking Trump....

AFTER...

he reverse skates LOTS OF SHIT SOETERO DID...

...and shows these FUCKING pussies...

WHAT A REAL LEADER IS.

(we haven't HAD one in DECADES).....they've never had one....ever

...AND HAVEN'T had A TRUE BUSINESSMAN ...SINCE FUCKALL FOREVER (Washington...Jefferson.....?)

LowerSlowerDelaware_LSD's picture

I'm certainly hoping.  Yes, he has the skills, leadership wise and business.  I am concerned about the Fed and markets.  We're in a pretty big bubble right now.  Can Trump take enough burden off of the economy to pull us out of whatever is coming?

NewHugh's picture

You DON'T think you butt-hurt shill.  You STINK!

New_Meat's picture

your tax money at work!

Cynicles's picture

fk the matresses, how about US cars that don't suck [last more than approximately 100k miles would be a nice start]

chicmagnet's picture

They are crap, my wifes Equinox needed an upper end rebuild after only 80,000 miles. I guess most of them do.

nmewn's picture

"Trump has saved or created (lol) more real, good paying jobs that Americans want in the two months since the election than Obama did in eight years of algae, solar panels & demonizing coal country. And it hasn't cost the taxpayers a dime." - un-named government official who wished to remain anonymous ;-)

Takeaction2's picture

Can you imagine being a Democrat....right now?  You are sooooo SCREWED.  It is nice to be on the winning team.

Handful of Dust's picture

 

"All this job creation is so ... raycist!"

~ Rep Lewis

Chuckster's picture

How much will this cost me this time around?

thecondor's picture

A billion for a thousand? They must all be very very productive people

flyonmywall's picture

Who the hell is going to buy their piece of shit cars? Then they'll go bankrupt again, and need another bailout.

 

BabaLooey's picture

...but if and when they do....THEY WON'T GET ONE.

XqWretch's picture

a billion dollars for a thousand jobs? how many can we get for a trillion?

LowerSlowerDelaware_LSD's picture

You did not learn math via Common Core.

angry_dad's picture

the usa blew $16 TRILLION on bank bailouts that collapsed thousands of factories and created millions of newly unemployed gringos

What Name's picture

I recently drove by a YUGE closed plant. This sucker was big. As I drove by there were at least a dozen or so closed stores across the street. Those were the lunch places, bars, clothing suppliers, etc that were closed because of the plant's closing. It's kind of like a domino effect. 

swampmanlives's picture

I want to know how much more I'll be paying for a Made in the USA car vs a Mexican made car.

Everybodys All American's picture

Bare in mind at least 1000 people will not be on food stamps, unemployment, disability, etc. God only knows how many spin off jobs are created that create the tax base to sustain the unfortunate. need I say more?

Pure Evil's picture

You think those assholes pass on the labor saving costs to consumers in the US when they import their crap from Mexico?

No wonder the Dumbocrats lost.

Go back to elementary school as it looks as if the common core math didn't stick.

angry_dad's picture

nothing more

the gringos are happy to overpay for these cunkers under the guise of 0% financing for 7 years

truth be told, they are 30% over priced already

What Name's picture

You've been paying the same. 

buckstopshere's picture

You can be certain that these factories will not be built in New York, Illinois, California, Oregon, or anywhere else where the socialists are in control.

Billy Shears's picture

Plenty of Mexicans right here in the US to man those plants and they work cheap.

J bones's picture

Im all for it but the general public needs to ready for higher car prices. Also the big picture here is technically the GM stock should be less attractive since it will cost more now to produce the same car which will eat at earnings. So in turn it should be a less attractive stock buy.

Or one could view it my way. I prefer to pay more for USA
That means a example if a GMC sierra is 50k then after its USA built it costs 60k then i dont wanna hear any general public complain about it cause if it were like that from day one youd never of known of a price difference. It should have always been USA at the correct normal price. Now all the sudden it's expensive? No this is the price you should have been paying the whole time.

J bones's picture

Also to really make an impact. It would be nice to hear Trump tell Apple since election to start making in USA. I will gladly pay more. More people have iphones in their pocket than cars. If this happens to all products in general, the reality would be our market right now is even more inflated than it already is. But thated be where the market should have been from day one.

buckstopshere's picture

They make the Mac Pro in Austin, Texas.

Making the high-end products in the US makes sense since the labor costs will be a smaller percentage of the total cost of production.

2_legs_bahhhhhd's picture

Pay more cause it's made in America? Fuck no...most of the parts have been made offshore for years already, they have been charging prices as if they were produced domestically. The sheep never figured it out that the financing was stretched out over 7 years instead of 4 or 5. After 7 years it's ready for the bone yard.

Joebloinvestor's picture

It should be a hell of a lot more then that given the sweetheart BK deal they were given.

That after screwing all the widows who owned stock.

King Tut's picture

There are no guarantees in life- just like in stocks and bonds- pay your money- take your chances in the biggest casino of them all

Son of Captain Nemo's picture

1,000 jobs???... That should fix Detroit real good!

Ha Ha Ha Ha!!!!

buckstopshere's picture

Those jobs could have ripple effects in the local and regional economies. More money for local merchants, who could then hire more employees, etc.

Son of Captain Nemo's picture

"Those jobs could have ripple effects in the local and regional economies. More money for local merchants, who could then hire more employees, etc."...

Ah Yes the word "could"!...

1,000 jobs that will trickle down enough revenue to fix 10 miles of unpaved highways in the State and maybe if they are lucky enough to fix "one" bridge!

But DON'T DRINK THE WATER!!!

scintillator9's picture

While that is true, can one point out those shovel ready jobs that Obama created?

It is true that the health care and service sectors can be very rewarding in their own way, but, they tend to not quite be as financially rewarding when capped at 29.5 to 32 hours per week.

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/07/AR200901...

http://www.forbes.com/sites/timworstall/2013/11/01/the-reason-that-shove...

 

 

Saratoga's picture

These are for new factories for electric vehicles. Robots will be building these vehicles. In other words not many jobs will be created.

buckstopshere's picture

Automation will reduce the number of manufacturing jobs but we will see increasing job growth in data scientists trained in neural networks and machine learning and those who are skilled in robotics, such as Robot Operating System.

And, of course, all this automation will still require large amounts of energy, minerals, metals, and so forth, so those sectors will probably see continued growth.

buckstopshere's picture

Also, if each job is $50,000 per year, then the local and regional economies could see $50 million before taxes. Maybe $40 million after taxes.

Those 1,000 jobs could make an impact.

TGF Texas's picture

Good lord, Trump found the Magic wand Obama said he didn't have, and has been waiving it like a mad man. Obama and democrats can't put bags over there heads fast enough.