General Motors, Walmart invest in the new American Dream

GM commits $1 bn and Walmart pledges $6.8 bn worth investments in the US.

The Dollar Business Bureau

Probably never in the political history of the United States has a President caused such ripples in the economic environment even before being sworn in. 

Walmart and General Motors, in tandem with the new stance adopted by US Presidency on aggressive job creation in the manufacturing sector, have both announced robust investments and job creation in the USA in 2017.

GM proposed an additional $1 billion investment over and above the already announced figure of $2.6 billion in 2016. The dominant automobile player plans to create 7000 new jobs in the US over the next two to three years. This net number includes IT jobs it's going to bring back home from overseas, 450 jobs in the axle production and 1,500 jobs that are associated with the $1 billion investment.

However, the company's plans of investing $5 billion in Mexico as announced in 2014 remain unaffected despite incessant threats from Trump. Moreover, the company has also been trimming its workforce, going by its recent decision to cut 3,300 jobs at three of its facilities. Having added 25,000 jobs since 2009, its overall job creation trend has been positive post recovery from the financial meltdown.

Even though under recent censure from Trump for selling Mexican-made Chevrolet Cruze in the US, GM denied that this fresh investment has anything to do with Trump's strong-arming tactics. GM spokesperson said that the plans were long due and that the current euphoria in the US markets caused by hopes of a revival of manufacturing made this a 'good-timing' for the announcement.

The to be POTUS, as always, was quick to take credit for both Walmart and GM announcements. "With all of the jobs I am bringing back into the U.S. (even before taking office), with all of the new auto plants coming back into our country and with the massive cost reductions I have negotiated on military purchases and more, I believe the people are seeing "big stuff," his tweets read.

Hyundai Motor Group, in a separate event on January 17, 2017, in South Korea, also unveiled its plans to up US investment to $3.1 billion in the next five years, a 50% increase. A new Hyundai plant is also in the pipeline.

Meanwhile, Walmart has committed to invest $6.8 billion in America, creating 10,000 jobs in the process. The retail giant also said that it will spend $250 billion on US-made products.

The Dollar Business Bureau - Jan 18, 2017 12:00 IST
 
TDB Top