US – The money will go towards new vehicle, advanced technology and component projects. The manufacturer emphasised that this is additional to the $2.9 billion announced in 2016 and more than $21 billion invested since 2009.
“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,” said Mary Barra, GM chairman and CEO.
The company will start to insource axle production for its next-generation, full-size pick-up trucks, bringing the work from Mexico to Michigan and creating 450 jobs in the US. One of its suppliers has also committed to making components for the trucks in Michigan, shifting 100 jobs there from Mexico.
GM said it will continue its drive to increase overall efficiency, based on a strategy to “streamline and simplify its operations and grow its business". Over the past four years, this has included the creation of 25,000 jobs in the US – 19,000 engineering, IT and professional jobs plus 6,000 hourly manufacturing positions – and the reduction of more than 15,000 jobs outside the US. In addition, the company has insourced 90% of its IT work.
“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 centre being in Warren, Michigan, and building on our momentum at GM Financial and in advanced technologies,” stated Barra. “These moves, and others, are expected to result in more than 5,000 new jobs in the US over the next few years.”
GM is encouraging its suppliers to make similar moves to enhance efficiency, including the creation of supplier parks next to its vehicle plants in the US, such as at Fairfax in Kansas, Spring Hill in Tennessee, Fort Wayne in Indiana and Lordstown in Ohio. The company said this will “result in significant savings from reduced transportation costs, higher quality communications and continuous improvement activities”.