General Motors Announces $1 Billion Additional Investment In U.S.
Axle Manufacturing Moving from Mexico to U.S.
It appears as if the “Trump Train” of companies repatriating jobs back to the U.S. or announcing future investments is going full steam ahead. General Motors has announced an additional $1 billion of investment in U.S. manufacturing, the addition of 1,500 new jobs, and the move of its key truck axle manufacturing from Mexico back to the U.S. This brings the GM’s total investment in the U.S. to $21 billion since 2009 and 25,000 new jobs since 2012.
GM claims this investment announcement is part of the company’s ongoing focus on efficiency, which also includes persuading suppliers to set up “supplier parks” adjacent to plants, reducing transportation and freight costs for components. GM also announced that another supplier is moving manufacturing operations from Mexico to the U.S. in preparation for the launch of the company’s next-generation fullsize pickups. Currently, Chevrolet Silverado and GMC Sierra models are sourced primarily from one of three plants in Indiana, Michigan, and Mexico. Mexico predominantly produces the popular 1/2-ton crew cab configuration. The long-term fate of the Silao plant is unknown. Silao also has engine and transmission manufacturing facilities.
However, GM has not completely abandoned Mexico as a manufacturing base, with plans to source the new GMC Terrain from its plant in Ramos Arizpe. The plant currently builds the Chevrolet Cruze hatchback and sedan, the Sonic subcompact, and built the Cadillac SRX crossover until production moved to Spring Hill, Tennessee.
Source: General Motors