GM Plans To Invest Over $1 Billion In US

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Robert Donachie Capitol Hill and Health Care Reporter
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General Motors will reportedly soon announce over $1 billion in new investments in multiple factories across the United States.

President-elect Donald Trump threatened General Motors Co. in early January with a “big border tax” for moving its Chevy Cruze model production to Mexico.

Trump tweeted out at 7:30 a.m. on Jan.3, “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!” The expected move by General Motors to heavily reinvest in the U.S. is likely a reaction to the president-elect’s comments, and an attempt to underscore their commitment to domestic employment.

General Motors is expected to make the announcement as soon as Tuesday, which will likely include the creation of 1,000 new jobs in manufacturing plants across the nation, The Wall Street Journal reports. The announcement will not include which factories are slated to gain new jobs. The move comes just one day after Trump took aim at German automakers, and just days after he increased pressure on the largest U.S. automakers.

Trump threatened German car makers Monday with a big border tax of 35 percent for cars imported into the U.S. Trump criticized German auto makers like BMW and Volkswagen for producing the majority of their vehicles in Germany, not the United States.

“You can build cars for the United States, but for every car that comes to the USA, you will pay a 35 percent tax,” Trump told German newspaper Bild. If the German firms decide to build factories in Mexico and plan to sell cars to the U.S., “without a 35 percent tax, you can forget that,” Trump told reporters. (RELATED: Trump Threatens German Car Makers With ‘Big Border Tax’)

Trump also took aim at other automakers, like Ford and Fiat Chrysler, for maintaining current large-scale production facilities in Mexico. In response, Ford bagged its plans for a new $1.6 billion factory in Mexico and instead, added 700 jobs to its Michigan plant.

Ford’s CEO called the move “a vote of confidence” in Trump and his pro-growth policies. The president-elect praised Ford and Fiat Chrysler at his first press conference last week for recently announcing their plans to reinvest in the U.S., which will create an expected 2,700 jobs.

“I hope that General Motors will be following. And I think they will be,” Trump quipped.

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