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GM investing additional $1B in US manufacturing

General Motors will invest an additional $1 billion in US manufacturing operations. These investments follow $2.9 billion announced in 2016 and more than $21 billion GM has invested in its US operations since 2009. The new investments cover multiple new vehicle, advanced technology and component projects.

A combination of 1,500 new and retained jobs are tied to the new investments. Details of individual projects will be announced throughout the year.

The company also announced it will begin work on insourcing axle production for its next generation full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 US jobs.

GM’s announcement is part of the company’s increased focus on overall efficiency over the last four years. With a strategy to streamline and simplify its operations and grow its business, GM has created 25,000 jobs in the US—approximately 19,000 engineering, IT and professional jobs and 6,000 hourly manufacturing jobs—and added nearly $3 billion in annual wages and benefits to the U.S. economy over that period. At the same time, GM reduced more than 15,000 positions outside the US, bringing most of those jobs to America. During that period, the company moved from 90 percent of its IT work being outsourced to an insourced US-based model.

GM has also been facilitating its supplier base to do the same. The company has been executing a strategy to create supplier parks adjacent to its US manufacturing sites (already accomplished 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), and will continue to expand this effort. Supplier parks locating near assembly plants result in significant savings from reduced transportation costs, higher quality communications and continuous improvement activities as suppliers are located closer to the final assembly location.

In addition, GM is confirming that another supplier has committed to make components for GM’s next-generation full size pick-up trucks in Michigan, moving 100 supplier jobs from Mexico to the US.

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