GM Set to Announce $1B Factory Investment: Source

AP source says jobs announcement coming Tuesday
By Newser Editors and Wire Services
Posted Jan 17, 2017 12:23 AM CST
GM 'Ready to Announce $1B Factory Investment'
General Motors CEO Mary Barra speaks about the financial outlook of the automaker in Detroit last week.   (Paul Sancya)

General Motors will announce a $1 billion investment in its factories that will create or keep around 1,000 jobs, a person briefed on the matter tells the AP. The Detroit automaker will make the announcement Tuesday morning. The investment is part of the normal process of equipping factories to build new models, and it's been planned for months, the source says. Multiple factories will get part of the money, but GM does not plan to state where the new jobs will go, according to the person. The company plans to use the announcement to tout both blue-collar and white-collar US jobs it has created in recent years, the insider says.

The announcement comes after Donald Trump's attacks on GM and other automakers for building vehicles in Mexico and shipping them to the US. Earlier this month, Trump threatened on Twitter to tax GM for importing the compact Chevrolet Cruze. While GM builds hatchback Cruzes in Mexico, most Cruze sales are Ohio-built sedans. Last week, GM CEO Mary Barra said the company has no plans to change where it produces small cars due to Trump's threats. Barra said the auto business has long lead times for where it produces vehicles, with decisions made two to four years ahead of time. Barra, who's part of a Trump economic advisory group, said it's too early to talk about a possible tariff. (Fiat also plans a $1 billion US investment.)

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